Real estate investors' top 4 complaints about Memphis

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Courtesy gatesofmemphis | http://ow.ly/EdXqe

Not everyone loves Memphis, but the city has a lot going for it – especially in the transportation and logistics sector, according to the speakers at Urban Land Institute Memphis' recent annual real estate event.

Ryan Poe

Staff writer- Memphis Business Journal

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If you're from Memphis, you know the consoling, often condescending look you get when you say where you live. A look often followed up with, "Aren't you afraid to live there?"

Fair or not, the perceptions of Memphis shape the city's fortunes — especially when it comes to economic development, as speakers pointed out at this morning's annual state-of-the-industry event on real estate by the Urban Land Institute Memphis.

But what about real estate investors? First Tennessee senior vice president in permanent loan origination, Jeremy Chism, outlined the top four complaints he gets about Memphis:

1. Greater accessibility. Since Delta Air Lines Inc. stripped Memphis International Airport of its "hub" status, it's more difficult for investors to get a nonstop flight to Memphis. If they have to stop over in Atlanta, Chism said, chances are they'll just spend their money there.
2. Property taxes. Chism said he worked with an investor recently who was looking at two buildings, one in Memphis and the other in Louisville, and Memphis' property taxes were 40 percent higher.
3. Surrendering business to Nashville. When businesses are leaving Memphis, or choosing Nashville over Memphis, that discourages investors from buying locally.
4. Margin for error. If a city is growing, a risky investment is easier to swallow for investors. If not, investors will go where they know they can make money.

Ryan Poe covers commercial real estate; transportation and logistics; construction; and Downtown Memphis. Contact him at rpoe@bizjournals.com.