Downtown Memphis now supports more than 68,000 jobs, roughly 18 percent of the city’s total employment, even as office vacancy in the district climbed to 17.6 percent in the third quarter of 2026, according to a new report from the Downtown Memphis Commission.
The commission released its 2026 State of Downtown report on October 26 at the Halloran Centre for Performing Arts & Education, pairing local data with findings from the International Downtown Association’s 2026 Value of U.S. Downtowns and Center Cities study.
The International Downtown Association calls downtown Memphis an “emerging district” in its 2026 Value of U.S. Downtowns and Center Cities study .
Jobs hold up despite empty offices
Downtown Memphis makes up just 2% of the city’s land area but supports more than 68,000 jobs, or 18% of city employment .
Downtown supports approximately 68,400 primary jobs, 18% of Memphis employment and 12% of metro employment, and employment grew 7.6% from 2014 to 2023 .
Office occupancy tells a more mixed story. Office occupancy stood at 85% in 2025, with 15% vacancy, well below the 19% national average .
But more recent commercial real estate data shows that gap narrowing. Office vacancies downtown are still high after the pandemic, with CBRE data showing the rate rose to 17.6% in Q3 of 2026 .
A local report from earlier in October similarly quoted DMC leadership noting that office vacancy was 14.7% in 2019, and in 2025, 15%, which is below the national average of 19%, and downtown lease rates grew almost 28% .
Foot traffic still below 2019 norms
The commute pattern shift that emptied downtown sidewalks during the pandemic has not fully reversed in Memphis, mirroring a trend seen in downtowns nationwide where office occupancy trends have shifted unevenly across the week.
Foot traffic reached about 84% of pre-pandemic levels in 2025, with that trend continuing in 2026 , according to the commission’s report.
Population growth downtown has helped offset some of the lost commuter traffic. Downtown had about 24,300 residents in 2024, up 14.8% from 2009 .
More residents living within walking distance of downtown jobs and amenities reduces reliance on daily commuting altogether, a pattern researchers have also observed in other cities recovering from pandemic-era disruptions to urban cores.
Crime down, investment pipeline swells
Public safety, long cited as a barrier to downtown visits, also improved. Crime fell 28.4% Downtown in 2025 compared with 2024, according to the 2026 State of Downtown report .
Development spending in the district has also accelerated. The Downtown Memphis Commission reports that $6.4 billion is currently in the Downtown Memphis pipeline .
Downtown Memphis Commission Chief Operating Officer Brett Roller said the $6.4 billion worth of projects in downtown Memphis currently in the pipeline is more than he has seen in his 16 years at the agency, and twenty projects were completed in 2025 .
Why it matters for commuters
Memphis joins a long list of U.S. downtowns still working to reconcile stronger weekend and residential activity with weaker weekday commuter traffic, a split that has reshaped how cities plan transit, parking and retail around the old five-day office week.
Shifts in daily routines, from how people get to work to where they choose to live, continue to ripple through local economies the way other everyday habits tracked by researchers, such as family financial support patterns, have reshaped household budgets elsewhere.
Finding tenants is a key priority for Memphis Mayor Paul Young as the city works to translate the development pipeline into steadier day-to-day foot traffic.
The commission’s full report and accompanying data are available through the Downtown Memphis Commission.
