News Summary
The industrial real estate market in Memphis is gaining momentum, with increased leasing activity and demand reported for Q2. Despite economic uncertainties causing cautious decision-making, significant transactions highlight the sector’s growth. Additionally, a refinancing deal for Poplar Plaza emphasizes ongoing investment in the area. Faropoint’s recent off-market acquisition further underscores Memphis’s role as a hub for industrial activity, showcasing resilience in an evolving landscape.
Memphis is witnessing a strengthening industrial real estate market as of mid-2023, building on the momentum established in the first quarter. Reports from commercial real estate firms indicate robust leasing activity and positive net absorption during the second quarter of the year, despite broader economic uncertainties causing caution in decision-making.
According to recent insights from CBRE and Cushman and Wakefield | Commercial Advisors, the local industrial sector is experiencing significant development with active leasing and a notable increase in demand. However, executives in the field, such as Patrick Walton from CBRE, point out that many businesses are delaying critical decisions until macroeconomic issues are resolved. This hesitance reflects a broader trend seen across various sectors as stakeholders remain cautious in their planning and investments.
Several prominent transactions have also been reported, highlighting the ongoing activity within Memphis’ industrial real estate scene. Noteworthy deals included those brokered by Fisher Industrial Group and Phoenix Investors, both of which were featured in CoStar’s property sales reports for the second quarter. These transactions further emphasize the robust nature of Memphis’s industrial sector.
Additionally, JLL Capital Markets facilitated a refinancing deal for Poplar Plaza, a grocery-anchored retail center in Memphis, valued at $25.139 million. This refinancing was secured through Renasant Bank and comes with a seven-year fixed-rate term. Located near the University of Memphis, with over 21,000 enrolled students, Poplar Plaza is situated at a high-traffic intersection with approximately 47,000 vehicles passing daily. The center has housed Kroger for over 72 years and features a range of other tenants, including Old Navy, Petco, and several local businesses and restaurants.
The recent financing is expected to support enhancements to Poplar Plaza, strategically targeting improvements to โThe Angle,โ a multi-bay building on the property with a total area of 14,015 square feet. The developments at Poplar Plaza are part of a larger trend in Memphis, which has seen about $13 billion in revitalization projects completed over the past four years. This ongoing development indicates a city focused on growth, marked by a diverse economic foundation in logistics, healthcare, and manufacturing.
In other developments, Faropoint, a tech-enabled investment manager specializing in US industrial real estate, announced the off-market acquisition of a portfolio comprising 16 buildings located in Jacksonville, Florida, and Memphis for $105 million. This acquisition includes 1.7 million square feet across both key logistics marketsโfour buildings in Jacksonville and twelve in Memphisโand was notably completed in less than 45 days, showcasing Faropoint’s efficiency in executing multi-market transactions. The deal aligns with the company’s strategy to target off-market industrial properties in high-demand areas.
Faropoint’s portfolio management extends to over $2.5 billion in assets and over 400 warehouses since its founding in 2012. The acquisition of this portfolio is aimed at bolstering their capabilities to meet future demand in the evolving logistics and industrial landscape. As the market continues to develop, Memphis positions itself as a central hub for industrial activity, even amidst wider economic uncertainties.
In summary, as the Memphis industrial real estate market shows resilience and growth, key players remain optimistic about the sector’s future. Active leasing, significant investments, and strategic acquisitions contribute to the area’s expanding economic landscape, positioning Memphis as a focal point for industrial and commercial development.
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Additional Resources
- Daily Memphian: Memphis Industrial Market Strong Second Quarter 2025
- Google Search: Memphis industrial real estate
- CoStar: Top Property Sales Recognized for Memphis
- Wikipedia: Industrial Real Estate
- Boston Real Estate Times: $25.1M Refinancing for Poplar Plaza Shopping Center in Memphis
- Encyclopedia Britannica: Real Estate
- Commercial Search: Why Memphis Industrial is Booming – A Contractor’s View
- Google News: Memphis industrial market
- Business Wire: Faropoint Completes $105 Million Off-Market Acquisition
- Google Scholar: Memphis industrial real estate
- Daily Memphian: Memphis Industrial Market First Quarter Boom
- Commercial Search: Sealy & Co. Picks Up Memphis Industrial Duo
Author: STAFF HERE MEMPHIS WRITER
The MEMPHIS STAFF WRITER represents the experienced team at HEREMemphis.com, your go-to source for actionable local news and information in Memphis, Shelby County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the areaโwith deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Beale Street Music Festival, Elvis Week, and Memphis in May International Festival. Our coverage extends to key organizations like the Greater Memphis Chamber and the Memphis Convention & Visitors Bureau, plus leading businesses in logistics, healthcare, and music that power the local economy such as FedEx, St. Jude Children's Research Hospital, and AutoZone. As part of the broader HERE network, including HEREBristol.com, HEREChattanooga.com, HEREKnoxville.com, and HERENashville.com, we provide comprehensive, credible insights into Tennessee's dynamic landscape.
