AREA REAL ESTATE SNAGS ANOTHER STRONG REPORT
Area had busy year in 2015, says CBRE Memphis
Industrial, retail and office spaces around Memphis filled up at a soaring pace in 2015, reports yet another commercial real estate firm.
Office: “The largest amount in more than 10 years.’’
Retail: “This is the largest year of construction deliveries since 2000.’’
Industrial: “... Makes 2015 the strongest year in more than 15 years.’’
Those are snippets from the latest CBRE Memphis Marketview reports on the last quarter of 2015, released Tuesday.
The reports follow a similar publication issued late last month by Cushman & Wakef ield /Commercial Advisors, which reported that a record amount of Memphis-area industrial space had been absorbed, or filled, in 2015 and that office space recorded its lowest vacancy rate since the Great Recession.
CBRE is seeing the same kind of dramatic growth.
InDusTRIAl
In the last three months of the year, there was net absorption of more than 1.5 million square feet of industrial space, “bringing the 2015 cumulative net absorption to 8.1 million square feet,’’ the report states. “This is almost double 2014 net absorption and makes 2015 the strongest year in more than 15 years.’’
CBRE credits the city’s central U.S. location, a strong network for distributing goods, quality developers and a continuing rebound in the overall economy.
The area’s industrial vacancy rate of 7.9 percent has been dropping since 2013, the report states, creating the need for new construction.
Most of the current industrial construction is occurring as speculative projects in the DeSoto County and Marshall County submarkets.
ReTAIl
The net absorption of 460,024 square feet for Memphis-area re- tail space was the largest since 2010, the report states. Led by Bass Pro Shops at The Pyramid and Tanger Factory Outlets, the amount of finished retail construction was the most since 2000 at 859,948 square feet.
The vacancy rate for retail fell one-tenth of a percent to 12.5 percent.
“In 2016, expect to see a steady flow of continued activity on the development front consisting of both new construction and redevelopment of existing properties,’’ the report states about retail.
“However, as Class A retail sites continue to be in short supply and new developments lease