Memphis: Americas Aerotropolis – Part Two

Previously, we talked about Memphis as a solid market to invest in because it is America’s Aerotropolis and the only Aerotropolis in the Western Hemisphere.  But beyond just being an Aerotropolis, Memphis is also a MAJOR HUB for all 4 modes of transportation – otherwise known as “The 4 R’s” – River, Roads, Railroads and Runways.

(1)   Runways – Referred to as “North America’s Distribution Center”, Memphis is home to Memphis International Airport, the largest cargo airport in the world which includes four north-south runways, a Northwest Airlines hub, and the FedEx headquarters & global operations center. The economic impact is $22 billion annually and the creation of 166,000 jobs.

(2)   River – It’s no secret that Memphis borders the Mississippi River (the largest river in the United States). This means that Memphis is also home to the largest still water harbor on the Mississippi and the second largest inland port in the country. Huge quantities of goods are shipped annually from Memphis via the Mississippi.

(3)   Roads – Memphis is the intersection point of two major Interstate highways- I-40, extending east-west, and I-55, extending north-south. This results in the Memphis region becoming an important trucking hub allowing for an operational presence of over 77 Fortune 500 companies, 3 local Fortune 500 World Headquarters and a ranking in Inc. magazine as “Best Place for Doing Business in America”.

(4)   Railroads – Memphis also harbors five Class-I railroads (BNSF, UP, CN/IC, CSX, and NS) and is the most important rail hub in the region. Perhaps that is because there are more than 400 freight companies operating in Memphis, who service not just all 48 contiguous states but Canada and Mexico as well.

As we discussed in our previous article, what makes the city of Memphis attractive to large companies is its centralized location within the U.S., the many different industries that support the city and the immediate access to all four modes of transportation- River, Railroads, Roads, and Runways.  Because of these factors, Memphis has the potential for tremendous economic growth, job creation and therefore a need for affordable housing.

According to Expansion Management, Memphis is ranked in the top 15 U.S. metro areas for European based company expansions. Memphis is also ranked one of the top 10 U.S. cities for its real estate market which boasts low purchase costs, low rents, lots of available space and most importantly a large variety of property types to choose from.

Memphis is unique when compared with real estate opportunities in other cities for two reasons: stable price appreciation AND positive cash flow. Most 3 bedroom 2 bathroom homes in Memphis can be bought for around $50,000-$80,000 (stable price); yielding a potential rental income of $800-$1,000 every month (positive cash flow)!


Why is Memphis an Ideal place to Invest?

  • Ranked as one of the U.S.’ top 10 real estate markets
  • 45% of the population rents
    • City of Memphis Population: 670,000
    • Metro Area Population:1.2 million
  • No state income tax
  • Housing Prices remain 20% below nat. average
  • cost of living 10% below nat. average
  • Low overall taxation
  • Good homes can be purchased for $50,000-$80,000!

Memphis Snapshot:

  • Memphis is home to 3 Fortune 500 Companies:
    • FedEx
    • International Paper
    • AutoZone
  • Ranked Top 15 U.S. metro areas for European based company expansions
  • Located on the Mississippi River
    • Handles more than 18 million tons of cargo annually
    • The largest still water harbor on the Mississippi
    • The 2nd largest inland port on the river
    • The fourth largest inland port in the U.S.
  • Home to 22 Colleges and Universities including:
    • University of Memphis (20,000 students)
    • Rhodes College
    • University of Tennessee Medical School
    • Southern College of Optometry
  • 2 major interstates meet outside of Memphis: I-40 / I-55
  • Busiest cargo airport in the world
  • 3rd largest rail city
  • Home to more trucking companies than any city in America