Robinson Weeks Partners, a leading developer of master-planned industrial parks across the U.S., announced today the launch of construction on a speculative distribution facility in Memphis, Tennessee. Located at 6401 East Shelby Drive, the 234,360-square-foot single-load development known as Southridge Crossing is Robinson Week’s latest project in the Memphis area as the firm continues to grow its footprint in the region. Joining two other recent developments in Memphis including Memphis Global Crossing II, Southridge Crossing is set to be completed by the end of 2022.
Featuring ample auto and trailer parking, finished office space, warehouse lights, 42 dock doors and 2 drive-in doors, Southridge Crossing is a modern facility that will accommodate immediate occupancy and deliver operational efficiency. The single-load speculative facility is in close proximity to I-55, I-69 and I-40, as well as the Memphis International Airport, which is the world’s busiest freight airport. Memphis is also home to five Class 1 railways. The variety of transportation options available enables future tenants to reach 70% of the U.S. population within a two-day drive time.
In addition to an ideal market location, Southridge Crossing also offers access to the state’s strong labor pool, with recent Census data confirming that Tennessee’s population grew by 8.9% since 2010. The city boasts a favorable tax climate, high transportation connectivity and is home to several large Fortune 500 companies. Ranked 8th for big box industrial transactions in 2020, Memphis has become a leading manufacturing hub. In 2021, net industrial absorption reached a staggering 16.2 million square feet in the Memphis market.
“Southridge Crossing underlines Robinson Weeks’ strategy of developing best-in-class industrial projects in markets with a strong absorption and excellent access to major transportation routes,” said Tyler Jones, Senior Vice President of Acquisitions and Development. “Building on the success of two previous projects in the market, our latest development in Memphis will appeal to tenants who are looking for move-in ready solutions to efficiently scale operations.”
With heightened demand for industrial facilities sparking increased development activity, total industrial construction has continued to rise in the Memphis market. According to a recent report from Cushman and Wakefield, approximately 10.9 million square feet of new industrial space is under construction in the area, with 2022 predicted to be another record breaking year for demand in the market. At 7.7 million square feet, speculative development comprises the vast majority of industrial space under construction.
“In distribution hubs like Memphis there is a massive need for speculative industrial space,” said Matt Davis, Senior Vice President Leasing and Development at Robinson Weeks Partners. “With a current vacancy rate of 4.8 percent, the Memphis submarket has a tight supply-demand imbalance with limited speculative options available for large-scale distribution hubs. To meet this demand, we have accelerated the construction timeline and anticipate a rapid lease-up once this “ready-to-go” building comes to market. We will include spec office space, warehouse lights and levelers offering the ability to accommodate immediate occupancy when construction is complete.”