Memphis commercial market improves in Q4

The Memphis commercial real estate market improved during the fourth quarter.

Property management companies in the Memphis commercial real estate market experienced improved conditions during the final three months of 2012, and much of this progress was driven by retail and industrial properties.

The total amount of industrial construction during the year was approximately 2 million square feet, according to a report from CB Richard Ellis Memphis. This was still far below the level recorded during 2005, when it was 8 million square feet of new construction completed. Despite this, it was a significant improvement from 2009, when less than 300,000 square feet of space was delivered. Industrial vacancies fell to less than 12 percent, more than 1.5 percent from the previous quarter.

There also was more than 153,000 square feet of retail absorption in the market in the fourth quarter, The Commercial Appeal reported, citing the firm’s findings.

“After four straight quarters of positive absorption, including 250,517 square feet of new leases signed in the fourth quarter, the Memphis retail market ended 2012 on a high note,” the report explained, according to the news source.

The office market experienced some issues, as the net absorption rate dropped by approximately 20,000 square feet, the report added.

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