FedEx was founded in 1971 and has become an economic giant as a worldwide brand name and the second largest private employer in Tennessee. Its impact on the economy of Memphis and surrounding counties cannot be overemphasized. FedEx’s facilities at the Memphis International Airport serve as its central distribution point and have made it the busiest cargo airport in the nation.

TOURISM

Tourism is a major industry for Memphis.

Memphis is “the home of the Blues and the Birthplace of Rock ’n’ Roll.” There is more live music in Memphis than in many communities twice the size.

Among the city’s many music-related attractions are: Elvis Presley’s Graceland home, Beale Street, the Stax Museum of American Soul Music, the Gibson Guitar Factory, Sun Studio, The Center for Southern Folklore and The Smithsonian’s Rock and Soul Museum.

Memphis is home to two major sports teams, the Grizzlies of the NBA and the Redbirds, Memphis’ AAA St. Louis Cardinals farm team. It is also home to Conference USA’s University of Memphis Tigers basketball and football teams and the Mississippi Riverkings hockey team. The FedEx Forum, a $250-million multi-purpose arena that is home to the Grizzlies, is located a half block from historic Beale Street and is the new home to the Smithsonian’s Rock ‘n’ Soul Museum. AutoZone Park, home to the Memphis Redbirds, spans more than two full city blocks in downtown Memphis, across the street from the historic Peabody Hotel. The park has been named the number one minor league baseball park in the country by Baseball America and includes the largest LED video board in the minor leagues. Set on 76 acres of Overton Park,

More than 10 million people a year visit over 50 tourist attractions. The tourism industry in Memphis generates $3.1 billion in visitor expenditures each year and produces 52,000 jobs in tourism and hospitality generating $2.0 billion in local payroll.

The Memphis Zoo is home to more than 3,500 animals representing over 500 different species.  Approximately one million visitors enjoy this first class zoo each year. Memphis’ cultural attractions also include the Pink Palace Museum, the National Civil Rights Museum, Memphis Brooks Museum of Art, Dixon Gallery & Gardens, the Memphis Children’s Museum and the Memphis Botanic Gardens. There are also several professional and amateur theater companies, a symphony, an opera and two ballet companies.

More than 10 million people a year visit over 50 tourist attractions. The tourism industry in Memphis generates $3.1 billion in visitor expenditures each year and produces 52,000 jobs in tourism and hospitality generating $2.0 billion in local payroll.

HEALTH CARE

Growth in biomedical research is positioning Memphis as an internationally recognized leader in biosciences.

Memphis is a renowned health care leader. Medicine and related activities such as medical education, biomedical research and related industries in fields such as pharmaceuticals and biomedical engineering, is Memphis’ largest industry. Memphis and Shelby County contain 20 major hospitals and together they report nearly $2 billion in gross annual income. Just east of downtown Memphis sits a staggering array of medical treatment, education and research facilities, including the world-renowned St. Jude Children’s Research Hospital, LeBonheur Children’s Medical Center, The Med, VA Hospital and Methodist University Hospital. More than 30,000 people work in the 700-acre Memphis Medical Center.

Currently there is more than $1.4 billion in construction underway in the Memphis Medical Center, including the recent completion of the new hospital at LeBonheur Children’s Medical Center ($327 million).

The non-profit Memphis Bioworks Foundation was created in 2001 to promote Memphis as an international biomedical technology center. The UT-Baptist Research Park is the largest project of the Bioworks Foundation. The 1.2 million square foot planned research park will be home to a six-story world-class biotechnology research facility, five state of the art labs, office buildings, a regional biocontainment laboratory and an incubation program to develop new business in biotechnology and foster creation of jobs. The economic impact of the completed 6.5 acre UT-Baptist Research Park is projected to be $2 billion a year.

Economic Impact of the Completed UT-Baptist Research Park;

• 5,000 new high-paying bioscience jobs.

• 4,000 supporting non-bioscience jobs.

• $250 million in annual salaries.

• $2 billion annual economic impact.

• $1.6 to $2.0 billion in capital investment over a 10 year period.

RESIDENTIAL REAL ESTATE MARKET

Median home prices in Memphis declined from $141,500 in December 2006 to $87,570 at year-end 2011.  This is well below the 2000 median of $118,800.  Between 2000 and the present, the Median Price / Median Income ratio has been roughly cut in half, from 3.0 to 1.5. 

Housing in Memphis is eminently affordable, and a return to normal affordability metrics would imply across-the-board price increases, particularly as the economy recovers bringing job and income growth.

April 2012 total sales increased by 15.3% over the prior year, while the Median Sales Price of $86,000 represented a 13.7% increase over the prior year.  Like many markets, Memphis has seen a precipitous decline in inventory over this time period, leading to a firming of the market.  Overall Active Listings for single family homes in Memphis declined from 8,087 to 6,671 over the prior year. 

The Current Month Area detail section of the MAAR Report shows the April Median Sales Price in the Shelby County Area, location of  all of the homes, increased 13.6% from  the prior year to $80,000, while the Existing Home Median increased by 11.6% over the prior year to $75,900.  Memphis’ overall housing affordability, growing population and strong economic underpinnings bode well for a stronger market in the future, and are drawing substantial investor.