Southeast Industrial Labor Report_Q1 2024

MEMPHIS, TN

ABSORPTION, NEW SUPPLY, & VACANCY RATES

10 12 14 16 18 20

0% 1% 2% 3% 4% 5% 6% 7% 8%

MSF

ABSORPTION, NEW SUPPLY & VACANCY RATES

0 2 4 6 8

Overall Net Absorption Construction Completions Overall Vacancy Rate

2018

2019

2020

2021

2022

2023

DEMOGRAPHICS

Population

1,366,693

Projected Population Change (5-Year)

2.2%

Working Age Population (Ages 18-64)

827,818

• Although 2023 absorption fell off compared to 2019-2022, the Memphis industrial market is returning to pre-pandemic levels. There were a flurry of new class A deals sign by the end of the year along with several large renewals and expansions signed in the last month. • Construction completions reached an all-time high in 2023 with an annual total of 18.4 msf. Tenants have more options in newer builds and second-generation options throughout all submarkets despite the halt in construction activity. Class A rental rates steadily increased 3.5% year-over-year.

Labor Force

652,724

Median Household Income

$54,190

Educational Attainment: % of Total Pop. Age 25+ with High School to Associates Degree

52.3%

Target Blue Collar Demographic Volume

112,452

Target Blue Collar Demographic Concentration

0.7

MATERIAL MOVING OCCUPATIONS

PRODUCTION OCCUPATIONS

INDUSTRIAL LABOR

• Memphis’s concentration of material moving workers is two times the U.S. average and the highest among the Southeast markets.

2024 Employment Volume

39,901

37,159

Worker Concentration

2.0

1.0

Projected 5-Year Employment Growth

1.9%

0.5%

Average Wages

$21.44

$21.64

Source: Cushman & Wakefield Research, Economic Research Institute, Experian

Wage Index

100

98

Demographics include Memphis-Forrest City Metro

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Cushman & Wakefield | Southeast Industrial Labor Report