Memphis’s Business Boom Continues
Memphis is making headlines — again. The most recent? Elon Musk’s artificial intelligence venture, xAI, is building what may become the world’s most powerful supercomputer, right in the heart of Memphis.
In March 2025, xAI closed a deal with the Memphis City Council to purchase a 1 million square foot site for its upcoming data center. This $400+ million development is expected to create hundreds of high-paying tech jobs and drive lasting growth in the region. According to DatacenterDynamics, the facility will be designed to support over one million GPUs for AI training and is being referred to as “Colossus.” The decision to build in Memphis is already being called a transformative moment for the city’s economy and reputation in the tech world.
“This project is going to make Memphis one of the most critical data and AI hubs in the United States,” said Memphis City Councilman Philip Spinosa during a committee meeting in February 2025.
Amazon, Nike, and More: Major Corporations Expanding in Memphis
xAI is only the latest chapter in Memphis’s rise as a magnet for major businesses. Amazon and Nike have both expanded their Memphis presence significantly:
- Amazon has built more than 3 million square feet of logistics facilities, including a robotic fulfillment center and multiple delivery stations. These centers have brought thousands of jobs to the region and significantly boosted the city’s role in national logistics.
- Nike operates one of its largest North American distribution centers just outside the city. In 2023, Nike committed $20 million to expand its existing facilities, enhancing speed-to-market and national distribution capabilities.
“These aren’t just headlines. We’ve seen how this level of investment drives real change. It creates lasting demand for housing, services, and long-term renters,” said Brian Conlon, Director of Business Development for Meridian Pacific Properties.
Why Memphis is a Business-Friendly City for Corporate Growth and Investment
The Greater Memphis Chamber and the City of Memphis have been intentional about attracting high-growth companies. Programs like “Memphis Moves” help relocating businesses with site selection, incentives, and workforce development. Tennessee also supports growth with no personal income tax, a flat 6.5% corporate income tax, and business-friendly regulatory structures.
“Memphis is on the move. The city offers one of the most connected business climates in the U.S., with unmatched support from local leaders, partners, and infrastructure,” notes the We Are Memphis business relocation initiative.
Memphis Business Boom Drives Real Estate
How Memphis Economic Growth is Driving Demand for Real Estate Investment
As more companies and jobs arrive in Memphis, so do renters, families, and professionals looking for homes. This influx has led to increased demand for single-family rentals and overall appreciation in property values.
Memphis continues to draw both high-earning transplants and essential workforce tenants — the kind of stable, long-term renters that make real estate investing profitable. For investors, this means reduced vacancy risk, dependable monthly cash flow, and significant upside as neighborhoods grow and modernize.
According to data from Zillow, Memphis home values have risen more than 45% over the past five years, driven by strong rental demand and relatively low housing supply. A recent report from the National Association of Realtors identified Memphis as one of the top U.S. markets for remote workers seeking affordable, high-growth cities.
“We continue to see strong rental performance and upward pressure on home prices across our portfolio,” said Brian. “The combination of affordability and economic momentum makes Memphis one of the most reliable investment markets we’ve seen.”
The Memphis Real Estate Market Stood Out in Our Investment Strategy
Meridian Pacific Properties has been evaluating growth potential and investing in submarkets around Memphis since 2006. We chose Memphis because it checked every box for a strong real estate market: job growth, affordability, landlord-friendly policies, and robust rental demand.
Over nearly two decades, we’ve built, leased, and managed hundreds of high-quality single-family homes across the Memphis metro. Our build-to-rent strategy allows us to deliver Class A properties that attract long-term tenants and produce consistent returns for our investors.
“There are so many strong submarkets across the greater Memphis area. Combined with the right kind of property — new construction, build-to-rent, and fully managed — it’s both a safe and strong investment choice,” says Brian. “We’ve invested here for nearly two decades because the data continues to show consistent, long-term performance for our investors.”
Best Properties for Investment in Memphis: Single-Family, New Construction, and Build-to-Rent
Not all real estate investments are created equal. At Meridian Pacific Properties, we’ve seen firsthand which types of homes perform best — especially in a market like Memphis.
For long-term cash flow and appreciation, we believe single-family homes consistently outperform multi-family properties. Single-family homes tend to attract longer-term renters, experience less turnover, and are easier to manage at scale.
New construction also plays a critical role. Older homes often come with deferred maintenance, outdated layouts, or costly repairs. New homes, especially those built specifically for renters, offer durability, efficiency, and immediate tenant appeal.
Build-to-rent (B2R) homes are designed from the ground up with investors and tenants in mind. These properties are located in desirable submarkets, close to schools, shopping, and major job hubs. They feature open layouts, energy-efficient systems, and premium finishes — all while being managed by experienced teams who understand what it takes to protect your investment.
Build-to-rent gives our investors peace of mind. These homes are designed to perform from day one, and we back them with full-service property management.
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Tax Benefits for Real Estate Investors and Homeowners in Memphis
Tennessee is known for its investor-friendly tax environment — and Memphis is no exception. For real estate investors, homeowners, and businesses alike, the tax advantages can make a significant difference in both returns and affordability.
Tennessee has no state income tax, meaning that rental income from Memphis properties is not subject to state-level taxation. Property taxes in the Memphis metro area remain relatively low compared to national averages, and investors can take advantage of depreciation and other write-offs to further improve cash flow.
Businesses benefit from a flat 6.5% corporate income tax and access to incentive programs through the state and local economic development offices. Homeowners also enjoy reduced tax burdens compared to many coastal or high-income-tax states, making Memphis attractive for relocation as well as investment.
Real Estate Investment Outlook for Memphis in 2025 and Beyond
As Memphis continues to rise — drawing innovators like Elon Musk’s xAI and expanding giants like Amazon and Nike — the case for investing here has never been stronger. A healthy economy attracts quality residents, and quality residents make for excellent renters and appreciating assets.
At Meridian Pacific Properties, we’re proud to be part of this momentum. We believe Memphis is not just a city on the rise — it’s one of the smartest places in America to invest in real estate.
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About Meridian Pacific Properties
We are a full-service real estate investment company specializing in build-to-rent homes in Memphis. As a turnkey provider, we handle every stage of the investment process — from land acquisition and construction to leasing and property management. With nearly 20 years of experience and a track record of helping investors build wealth through residential real estate, our mission is to educate buyers and deliver exceptional investment opportunities.
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Sources
- Memphis City Council Approves xAI Land Deal – WREG
- xAI Buys One Million Sq Ft Site for Memphis Data Center – Data Center Dynamics
- xAI Supercomputer Plans in Memphis – Commercial Appeal
- Businesses Aim to Thrive in Downtown Memphis – Yahoo News
- Business Relocation Support in Memphis – We Are Memphis
- Why Memphis Real Estate Market – Meridian Pacific Properties
