Memphis Industrial Boom Leads US In Construction Activity

A Regional Powerhouse Emerges

Memphis is rapidly becoming one of the most dynamic industrial markets in the country, as reported by Commercial Search. By March 2025, Memphis led major US markets with 12.5M SF under construction, totaling 4.2% of its inventory. Only Phoenix surpassed Memphis in absolute square footage under construction.

Anchored By BlueOval City

Much of this momentum is fueled by BlueOval City, Ford Motor Co.’s landmark electric vehicle complex near Stanton, Tenn. The nearly six-square-mile project—among the largest automotive investments in US history—will include a 4.2M SF battery plant via a joint venture with SK Innovation and an EV manufacturing facility projected to produce 500K trucks annually. Together, the developments represent an $11.4B commitment and are expected to bring 11K jobs to the region.

Magna International is fueling growth with $800M invested in three auto parts facilities, including two located within BlueOval City.

Investors Follow The Growth

Investor activity in Memphis has surged. The first quarter of 2025 saw $182M in industrial sales, more than double the volume from the same period in 2024. Roughly 2.8M SF traded hands across eight properties.

Among notable transactions, Sealy & Co. expanded its holdings with the purchase of a 589,598-SF, two-building portfolio in Mississippi’s DeSoto County. Robinson Weeks Partners acquired 831,974 SF in two Legacy Park buildings, marking a major expansion in Olive Branch.

Competitive Pricing Keeps Demand Strong

Despite rising vacancies—which reached 9.2% in March, slightly above the national average—rents remain highly competitive. In-place industrial rents in Memphis averaged $4.17 PSF, with new leases coming in at $4.67. That’s well below the national average and far less than pricing in high-cost markets like Miami or New Jersey.

Thanks to low costs and strong infrastructure, Memphis continues to draw rising interest from logistics operators and automotive suppliers.

Why It Matters

Memphis’s rise as an industrial hotspot underscores how strategic investment in infrastructure and manufacturing can transform a market. Memphis is building a strong development pipeline and securing a key role in the EV supply chain, driving long-term industrial growth.

What’s Next

As megaprojects like BlueOval City progress and ecosystems expand, Memphis strengthens its position, driving forward with sustained industrial momentum. Rising demand from auto and logistics sectors continues to fuel new construction and attract steady investment across the Memphis industrial market.