Memphis doesn’t make headlines like Dallas or Phoenix. But if you’re tracking where capital is quietly flowing—and where value still exists—this market deserves your full attention.

Powered by Ford’s massive BlueOval City development and a flood of institutional interest, Memphis has emerged as one of the most dynamic industrial markets in the country. It’s a story of scale, logistics leverage, and investor upside—and it’s only getting started.

A Market in Motion

As of March 2025, Memphis had 12.5 million square feet of industrial space under construction—representing 4.2% of its total inventory, the highest share among all major U.S. markets. That puts it ahead of legacy logistics hubs like Chicago and Indianapolis, and second only to Phoenix in raw pipeline volume.

The BlueOval Effect

The spark behind the surge is Ford’s $5.2 billion BlueOval City, a joint venture with SK Innovation that’s transforming Stanton, Tennessee, just outside Memphis. Spanning nearly six square miles, this EV megacampus includes a 4.2 million-square-foot battery plant and is expected to deliver 500,000 electric trucks per year. It’s also projected to create 11,000 direct jobs, anchoring a broader ecosystem of suppliers, warehousing, and logistics.

For developers and investors, BlueOval isn’t just a one-off—it’s a demand engine.

Sales Are Surging

In Q1 2025, industrial sales volume in Memphis nearly doubled year-over-year, hitting $182 million across 2.8 million square feet. Two deals stand out:

Robinson Weeks Partners acquired 831,974 square feet at Legacy Park in Olive Branch, Mississippi. Sealy & Co. picked up a 589,598-square-foot portfolio in the same submarket.

It’s clear that national capital is looking closely—and acting fast.

Still One of the Best Bargains in America

Even with that momentum, Memphis remains one of the most affordable industrial plays in the country. Average sale prices clock in at $75.81 per square foot, compared to the national average of $125—and far below places like New Jersey ($255.63) or Phoenix ($176).

Leases offer similar value:

In-place rents: $4.17 PSF New leases: $4.67 PSF

For cost-sensitive occupiers in e-commerce and auto supply chains, that math works.

Yes, vacancy has ticked up to 9.2%, but don’t mistake that for weakness. The fundamentals—affordability, central geography, and infrastructure tailwinds—are attracting a new class of tenants and capital.

Memphis isn’t just riding a wave. It’s building one.

For developers and investors chasing yield, this is the kind of overlooked market that often delivers outsize returns.