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Southeast Market Reports

Market ReportsOfficeSoutheastSoutheast Market ReportsVirginia

Conversions, Return to Office Movement Help Propel Richmond’s Office Market

by John Nelson

Richmond’s office market stands out as a resilient post-pandemic performer, with strong relocation activity, a notably low vacancy rate driven by steady return-to-office trends and dynamic development, including office-to-residential conversions that are reshaping both the office and retail landscapes. Relocations have outpaced renewals in 2025, accounting for 78 percent of leases signed so far this year — the highest ratio of new leases to renewals since before 2019. This marks an increase even over the past few years, which were already remarkably healthy.  Richmond’s overall leasing activity remains stable, escaping the post-pandemic decline that crippled many other markets. The region has also recorded positive absorption for four consecutive quarters, signaling steadily increasing demand following occupancy losses from 2021 through 2023.  Return-to-office initiatives have reignited space needs that have been put on hold for months, or even years. As a result, average daily employee attendance in downtown Richmond has risen from 2,200 in 2022 to more than 3,000 in 2025, according to Placer.ai data, analyzed by CBRE Research. While this still trails pre-COVID levels by about 43 percent, it reflects progress toward restoring a balanced office market. Class A and B properties have repeatedly shown positive net absorption when broken down …

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FloridaMarket ReportsMultifamilySoutheastSoutheast Market Reports

Orlando Multifamily Poised for Strong Second Half of 2025, Momentum Heading Into 2026

by John Nelson

Orlando’s multifamily investment market hit an inflection point in the first half of 2025.  Insurance rates and construction starts tapered, and we’ve started to see cap rate compression and signs of rent growth. Our traditional, “household name” and institutional multifamily buyers are back in the market and at the top of the bid sheet. Additionally, investors are showing a strong interest in and appetite for build-to-rent (BTR) communities as that subsector continues to gain favor.  It’s a significant improvement from where we were, coming off the post-pandemic roller coaster ride that saw record years for multifamily investment and pricing in 2021 and 2022 followed by interest rate spikes, cap-rate spikes and all coinciding with higher construction costs, skyrocketing insurance costs and a supply glut.  Of course, Orlando is one of the fastest growing metros in the United States, so new multifamily supply is certainly needed as the region grows in terms of population and affluence. Orlando’s population is expected to hit 3 million this year, with the metro area adding 1,500 new residents per week, according to the Census Bureau. What’s more, year-over-year median household income grew 3.6 percent year-over-year.  It’s no surprise that the region continues to rank among …

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FloridaMarket ReportsRestaurantRetailSoutheastSoutheast Market Reports

Orlando Retail Market Remains Tight as Investor Activity Rebounds

by John Nelson

Orlando has emerged as one of the Southeast’s most competitive retail markets, where robust tenant demand and limited supply are driving both leasing velocity and investor urgency.  With availability near historic lows below 4 percent and most new construction preleased, the market offers few options for the wave of private and institutional capital targeting Central Florida. This imbalance is fueled by strong population growth and resilient consumer spending. Quality retail assets continue to trade quickly, while lower-tier properties remain on the market longer. Buyer pricing remains grounded in fundamentals, and the gap between buyers and sellers has narrowed, making deals increasingly feasible. Investment activity has accelerated in 2025, following 12 to 18 months of steady engagement from private capital. Institutional buyers, including REITs and national funds, are now re-entering the market, primarily targeting stabilized assets in high-growth suburban corridors where tenant rosters offer long-term income visibility. Unanchored and grocery-anchored centers remain in high demand, especially in infill locations with constrained supply and strong population growth.  While investor appetite is strong, today’s environment has created a bifurcated market. Well-located, quality centers continue to trade quickly, often with multiple offers, while less desirable assets linger. 1031 exchange buyers and out-of-state groups remain …

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Market ReportsOfficeSoutheastSoutheast Market ReportsTennessee

Slow and Steady Wins the Race: The State of the Memphis Office Market in 2025

by John Nelson

In a world where volatility has become the norm in commercial real estate, Memphis stands out as a market defined by consistency. While other cities have experienced dramatic swings in vacancy, absorption and construction activity, the Memphis office market continues to follow a more measured pace.  “Slow and steady wins the race” is more than a phrase — it’s a fitting summary of how Memphis has maintained balance amid national disruption. Stability in supply Over the past couple of decades, the total supply of office product in Memphis has grown at a moderate pace, sitting at nearly 28 million square feet today. This disciplined approach has kept vacancy within manageable levels and prevented the oversupply issues seen elsewhere.  With no new speculative construction of size since 2009, the market has had time to absorb shifts in tenant behavior without being flooded with excess space. Demand aligns with supply Because supply has remained relatively static, demand has shifted in composition rather than volume. Like many cities, Memphis has seen a “flight to quality,” with tenants prioritizing modern, amenitized spaces over outdated properties — even if that means reducing their footprint.  A company that once leased 30,000 square feet in a Class …

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Market ReportsRetailSoutheastSoutheast Market ReportsTennessee

Memphis’ Retail Market Is Quietly Building Momentum

by John Nelson

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 …

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FloridaMarket ReportsRestaurantRetailSoutheastSoutheast Market Reports

Florida’s Retail Evolution Is Paying Off

by John Nelson

When asked what makes Florida appealing from a retail perspective, Steven Miskew, CEO of Southeast Centers, put it succinctly: “The good macro-economic drivers are here: population growth, lack of supply and low vacancy, all in a pro-business environment,” he said.  As Miskew asserts, Florida’s population continues to swell as approximately 1,755 people move into the state daily, according to 2023 data from online self-storage platform StorageCafe.  Additionally, U-Haul has ranked Florida as a top four growth state in its annual growth index — which analyzes the destinations for one-way moves across its fleet — every year since 2015. Seven Florida cities ranked in U-Haul’s top 25 growth metros in 2024. Florida’s growing population underpins the success of its retail sector as more rooftops directly correlates to more demand for corresponding services, including grocery, food-and-beverage, health and wellness and soft goods.  Phil Kirkpatrick, business recruitment and property development at the City of Clearwater’s economic development and housing department, says that the Tampa Bay-area city is seeing very strong retail occupancy levels. “Vacancy is quite low as of the end of 2024, sitting at 5.4 percent,” says Kirkpatrick, acknowledging that the rate exceeds the vacancy rate of the overall Tampa Bay metro …

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IndustrialMarket ReportsMississippiSoutheastSoutheast Market ReportsTennessee

Memphis: A World-Class Logistics Hub Positioned for Future Growth

by John Nelson

The Memphis industrial market stands at a pivotal juncture in mid-2025, navigating temporary headwinds while maintaining the fundamental strengths that have established it as one of the Southeast’s premier logistics hubs. Despite recent challenges from global trade uncertainties and tariff negotiations impacting project timelines, the market’s long-term outlook remains positive with a foundation built on unparalleled logistics infrastructure and strategic advantages. Global logistics advantage  Memphis stands as the ultimate global logistics hub, with unrivaled multimodal infrastructure creating competitive advantages few markets can match. The “FedEx effect” remains one of Memphis’ most significant economic drivers. This powerful multiplier — named for the company’s massive impact on the regional economy — has transformed Memphis into a critical node in global supply chains. With its World Hub at Memphis International Airport, FedEx connects businesses to hundreds of countries across multiple continents, processing millions of shipments while employing thousands across the region. Recent initiatives, including Network 2.0, One FedEx and the new Automated Sorting Facility at the World Hub, represent strategic investments in efficiency and integration that are likely to boost the Memphis industrial real estate market. Additionally, Memphis International Airport ranks among the busiest cargo airports in the Western Hemisphere and the second …

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FloridaMarket ReportsMultifamilySoutheastSoutheast Market Reports

Strong Job, Population Growth Fuel Orlando’s Dynamic Multifamily Landscape

by John Nelson

Orlando is one of the country’s most active residential markets today — a modern-day “boomtown” experiencing rapid growth on multiple fronts. Economic expansion, population gains and infrastructure investments are fueling job creation and housing demand.  Multifamily developers have responded with an unprecedented range of new affordable, middle-market and luxury housing options. Young professionals, retirees, urbanites, suburbanites, digital nomads and long-term residents can each find something to suit their lifestyles and budgets thanks to a diverse mix of residential settings and price points across the Central Florida region.  Economic drivers Orlando has attracted more people and created more jobs than any other U.S. metro over the past year. In 2024, Orlando led the nation in job growth, adding more than 37,500 jobs, according to the Florida Department of Commerce. Major projects, such as Universal Studios’ Epic Universe, Walt Disney World’s expansion, the Lake Nona Town Center build-out and Westcourt (the Orlando Magic’s Sports and Entertainment District) are expected to bring another 60,900 jobs by 2027. The growing healthcare, education and tech sectors are bringing greater balance to the economy; more than 80 percent of the local workforce is employed outside of hospitality and leisure, according to the Orlando Economic Partnership. Orlando …

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Market ReportsNorth CarolinaOfficeSoutheastSoutheast Market Reports

Charlotte’s Office Market Shows a Shift Toward Expansion, Long-Term Leasing

by John Nelson

The momentum in Charlotte’s office market continues into 2025, showcasing a strong first quarter marked by positive net absorption and a surge in multi-market tenant prospects. We are currently seeing three times as many expansions as downsizing among tenants, indicating a psychological shift among decision-makers across various industries. Despite some large vacancies affecting the overall market rate, the narrative on the ground in Charlotte is one of optimism and urgency. A few factors contribute to this trend, including companies are increasingly bringing employees back to the office, and those that overcorrected their space needs post-pandemic are reassessing their strategies. Particularly interesting is the demand for Class A office space in Charlotte, a thriving Sun Belt market. The most sought-after buildings in prime locations are nearly full, leading to reduced concessions and rising rents. This stands in stark contrast to reports of distressed assets negatively impacting modern office investments.  Furthermore, the number of quality subleases are limited, and new construction is expected to come to a halt soon, particularly as remaining spaces in 110 East and Legacy Union are leased, most likely by year-end. If last year is any indication of a fundamental positive shift in the office sector, we can …

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IndustrialMarket ReportsNorth CarolinaSoutheastSoutheast Market Reports

Charlotte Industrial Market Holds Steady Amid National Slowdown

by John Nelson

The Charlotte industrial market continues to display resilience in 2025, navigating a national slowdown with more stability than a lot of other markets. While economic headwinds and record supply volumes have created challenges nationally, Charlotte’s fundamentals remain anchored by consistent tenant demand, especially for Class A space under 200,000 square feet. As vacancy stabilizes and rent spreads narrow between asset classes, a clear flight to quality trend is reshaping how tenants prioritize space and make leasing decisions throughout the region. In first-quarter 2025, Charlotte recorded just over 1 million square feet of net absorption, maintaining positive momentum while absorbing the wave of speculative deliveries over the past several years. Fifty-six percent of all leases signed in the first quarter were for Class A space — the highest percentage recorded for Class A product since 2016, according to research from Avison Young. This stands out in light of the significant volume of new construction deliveries that have come on line vacant in recent years. With the rent premium between Class A and B product narrowing, tenants are increasingly seizing the opportunity to relocate into newer, more efficient facilities. The tenant-in-the-market (TIM) pipeline tells a compelling story. More than 12 million square …

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