Memphis Local Market Update
Kent Coykendall (President):
[timestamp 2:10] – Update from Kent Coykendall on how the Memphis real estate market has been affected by the protests: “The protesting activity has been limited and peaceful – very little violence, a curfew has been imposed downtown, but there has been very little violence and protests. There’s been no real effect on the safety in the economy.”
[timestamp 3:14] – Unemployment update in Memphis: “Memphis’s unemployment rate is around 12.5%, which is about 2% below the national average and 3% below the regional average of Nashville, which is about 2 hours away… Memphis is much more of a distribution and logistics economy, all those businesses are booming.
[timestamp 8:17] – Thoughts on how the termination of supplemental unemployment benefits will affect rent collection: “There is some legitimate concern that when the supplemental federal unemployment benefits, which is $600 per week, at the end of July, going into August, there could be parts of the country seeing an increase in the number of delinquencies, evictions, and closures. We are just not seeing that probability here in Memphis, or with our properties.”
The Overall Market Nationally
Kevin Conlon (Principal & Co-Founder):
[timestamp 9:46] – Update on buying activity for Memphis investment properties: “The Memphis market in May was extremely strong and we sold more to investors and retail homebuyers than we did in January of 2020. What I see going on nationally and how some of that seems to be translating down into Memphis as we’ve been seeing real estate barring across the nation has been down significantly. But that’s because there’s just not a lot of inventory available for sale on the market. I’ve corroborated this with my colleagues in this real estate mastermind group that I belong to, they’re seeing the same thing. Where there’s inventory, especially new construction it sells very quickly. And as a case in point, you know, the market in Memphis in May for us was extremely strong. We sold more to investors and retail homebuyers in may than we did from January through April. So it’s really, really been busy. Investor activity in our forecast remains pretty strong for June as well, so we see this continuing.”
[timestamp 12:02] – Interest rates for investment financing are low: “The low-interest rates we’ve been seeing have also been helping to drive demand for retail buyers and is one of the reasons that buying activity has remained strong.”
New Meridian Developments in Progress
[timestamp 14:33] – Introduction to Ingram’s Place community in Byhalia: “Now, shifting gears a little bit. I think variously in the past, we’ve spoken about special work that we’re doing in various regions in Memphis. And one of the areas that we’re very active in right now is Byhalia, which is located in Marshall County, Mississippi, which is part of the Memphis region a little bit to the Southeast of Memphis. Byhalia is a neighboring community to Olive Branch in Marshall County, 15 minutes away from E-commerce hub, Chickasaw Trails Industrial Park, which has created over 2,000 local job opportunities at major companies such as Amazon, FedEx, and Kellogg. As a result of this job growth, there is now a high demand for housing in Byhalia to keep up with the growing population and we project that this community will grow to be “the next Olive Branch”. So we’re working very hard to develop a more significant presence there. And I just want to give you a flavor of why that is. There’s a major beltway around Southeast Memphis called interstate 269, which is very recently completed. And it intersects another interstate in Memphis, interstate 22, right at Byhalia. And that’s opened a very key transportation link, and it’s attracted a lot of investment in that part of Marshall County.”
Investor Portfolio Performance Report
Brian Conlon (Business Development):
[timestamp 18:50] – Introduction to the Investor Portfolio Performance Report: “This is a special project we will be launching for investors this month. In this report, investors are provided the details of their returns so they are able to gain clarity on how well their properties have performed.”
Watch the full webinar conversation by clicking here.
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