As the new recruitment cycle begins, Memphis has earned a spot among the top 10 cities in the nation for corporate headquarters, according to a highly regarded site selection publication.
In its annual survey, Site Selection also ranked Tennessee as the fourth-best state for business, with Southern states dominating the list. Eight of the top 10 states and eight of the top 11 cities hailed from the South.
Memphis and Nashville both placed prominently in the “Best Cities for Headquarters” rankings from the publication’s November 2024 survey of site selectors. Nashville secured the No. 4 spot, while Memphis tied for No. 9 alongside Phoenix and San Diego.
One of the key considerations for site selectors was electricity availability, with respondents emphasizing the importance of cost, reliability, and access to power as crucial factors in site decisions.
When asked about the most critical elements of a state’s business climate, the 36 site selectors surveyed highlighted workforce, state and local tax policies, and cost of living as the top three priorities. Other significant factors included incentives, quality of life, and workforce training programs.
The survey also identified workforce challenges expected to shape the coming decade. Labor shortages topped the list, followed by affordable housing, upskilling opportunities, childcare availability, and a lack of soft skills among workers.
Memphis has seen a surge in major economic development projects in recent years, including Ford Motor Co.’s BlueOval City in Haywood County and xAI’s Colossus supercomputer. However, attracting metro and regional headquarters remains a challenge.
One key headquarters to watch is FedEx Freight. With FedEx Corp. spinning off its freight division into a separate company, this development could signal a new opportunity for the region.
