Memphis, TN Industrial Market Report Q3 2026
1.93M SF Absorbed in a Strong Q3 as Vacancy Falls to 7.8%
Demand
Memphis absorbed 1.93M SF in Q3 2026, against 246K SF in the same quarter last year. Vacancy is 7.8%, 159 bps tighter than Q3 2025. Benton County is the tightest submarket at 0.0% vacancy; Northeast posted the smallest rent decline at -0.2%. Trailing-12-month absorption of 5.28M SF compares with -5.70M SF a year earlier. Asking rent of $5.47/SF is down 2.0% year over year and 2.0% below the Q2 2026 peak of $5.58/SF.
Supply
Memphis delivered 14K SF in Q3 and 247K SF over the trailing twelve months (-65% versus the prior TTM period). Space under construction equals 0.9% of inventory, concentrated in Crittenden County at 6.2% of its stock. Annual deliveries peaked at 13.46M SF in 2021. Q3 deliveries were 48% below last year’s 28K SF. The 2.95M SF pipeline equals about two quarters of absorption at the trailing pace.
Investment Market
Memphis recorded $1.5B in sales over the trailing twelve months, +176% against the prior TTM period; Q3 accounted for $317M. The high-water mark in this series is $3.1B in 2021.
Memphis cap rates average 8.83%, up for 19 straight quarters. Pricing sits at $59/SF, higher for 15 consecutive years. The cap rate is 124 bps above the Q4 2021 low of 7.60%.
Volume
- $1.5B TTM volume (+176% YoY)
- Q3 2026: $317M
- Series peak $3.1B (2021)
Pricing
- Cap rate 8.83%
- Price per SF $59
- Caps expanding 19 quarters running
