In Memphis industrial market, the Q2 absorption total of 1.4 million square feet (msf) is the highest since Q1 2023 (almost exceeding the prior four quarters combined), and this positive momentum should carry over into the second half of 2024. The Memphis office market new leasing activity fell below 100,000 square feet (sf) well below 229,000 sf in first quarter of 2024 and more in line with the quarterly average over the past 24 months. However, 2024 rental rates trended upwards in Q1 2023 to $20.76 per square foot, a 290-basis point increase quarter-over-quarter.
Recognized by the Urban Land Institute as the top city for real estate and investment activity for a third year in a row, Nashville has been a major growth market in the Southeast for years. As the office market repositions, finding its balance between hybrid working, flight to quality and smaller average lease sizes, Nashville continues to show signs of strength moving into the second half of 2024.
