When people think of Memphis, they often picture its musical legacy, its storied riverfront and its role as a logistics powerhouse. But fewer realize that Memphis is also quietly becoming one of the Southeast’s most dynamic retail markets.
Despite headwinds that have impacted large-format retailers nationally, Memphis continues to attract new-to-market brands, redevelop aging assets and create spaces that resonate with today’s consumers.
Economic foundations
Memphis is riding a wave of transformational investment across multiple sectors. Ford Motor Co.’s $5.6 billion Blue Oval City, where the company’s all-electric truck and battery plant will be built, is already reshaping the regional economy.
Google’s announcement of a 1,178-acre, $10 billion data center and office campus in nearby West Memphis in Arkansas adds another layer of momentum, as does the creation of the world’s largest supercomputer by xAI. Coupled with St. Jude’s $10 billion expansion, these projects underscore the region’s growth trajectory and long-term employment base.
In retail, the past year brought a temporary pause in net absorption, with approximately 317,000 square feet coming back to the market — primarily due to national big-box closures like Macy’s, Joann Fabrics and Big Lots. Yet these macro shifts don’t tell the whole story.
By the numbers
The broader market vacancy rate sits at a healthy 3.7 percent, but prime corridors — Poplar Avenue, Germantown Parkway, Union Avenue and Goodman Road — continue to post significantly higher occupancy and rising rents. Although year-over-year rent growth has slowed to 1.8 percent, the main corridors are bucking the trend, with continued rental increases driven by persistent demand.
Retailers and developers that take the time to experience Memphis firsthand quickly shed preconceived notions. Time and again, we’ve hosted tours that end with the same reaction: “You need to come see it.”
The Memphis retail landscape is more vibrant, more accessible and more diverse than many expect.
Who’s betting on Memphis?
Several national and regional retailers have made recent moves into the market. Primark will open one level of the former 150,000-square-foot Sears space at Wolfchase Galleria, and Alo Yoga is planting a flag at Saddle Creek in Germantown. Other brands expanding into or within Memphis include First Watch, Raising Cane’s, Buc-ee’s, Dutch Bros, Carhartt and Daiso, among many others.
It’s not just about new tenants — it’s about rethinking space. The redevelopment of Oak Court Mall, led by locally based Poag Development Co. and KRN, is a once-in-a-generation opportunity to reimagine East Memphis with a high-end mixed-use destination. Other exciting projects include The Standard, a Germantown development spearheaded by Billy Orgill and Adam Slovis, which will feature a signature restaurant from two of Memphis’ top chefs alongside hotel, residential and retail elements.
The Racquet Club in East Memphis is also being repositioned as a mixed-use property, and Southaven, Miss., continues to surge with projects like Silo Square and Top of the Sipp, a more than 100,000-square-foot, entertainment-focused mixed-use development.
Capital still in play
Sales activity in the past 12 months reflects a deepening interest in the market. Heitman’s purchase of Shops of Forest Hill, a 350,000-square-foot power center in Germantown, signals strong institutional confidence. Other notable deals include Curbline’s acquisition of Houston Levee Galleria in Collierville and a local investor group’s purchase of Market at Cordova.
Final takeaway
The fundamentals of the Memphis market tell a quiet yet robust story. It’s a city that’s attracting best-in-class brands, supporting innovative redevelopment and offering opportunities for both local and institutional investors.
The combination of low vacancy, steady demand and transformative regional projects positions Memphis as one of the Southeast’s most quietly compelling retail markets.
— By Jon Isbell, executive vice president, TSCG. This article was originally published in the July 2025 issue of Southeast Real Estate Business.