MEMPHIS—Memphis is no Miami, but the key word for the commercial real estate market there—from office to industrial to retail—is stable. That’s the takeaway from Xceiligent‘s second quarter reports.

For example, after a strong first quarter start—Memphis posted over 1 million square feet of industrial space absorbed—the market has cooled in the second quarter. That three-month period saw less than 100,000 square feet of positive industrial space absorption.

What happened? According to Xceligent, several “significant” leases were signed during the quarter but a move by Louis Dreyfus to execute a 600,000-plus downsizing hurt the overall industrial space picture. Cargill leased over 400,000 square feet of industrial space in the Southwest market and OLAM took over 300,000 square feet in the Southeast market.

Meanwhile, Volvo’s announced plans to build a 1 million square foot distribution center in Byhalia, which will create 250 jobs, indicates growth happening in the Memphis industrial market. Nike is also planning to expand its distribution center by another 1 million square feet in North Memphis, and ProLogis broke ground on its 218,000-square-foot facility in DeSoto County during the second quarter.

“IDI still has its 861,252-square-foot building under construction at Crossroads Distribution Center, which is expected to deliver in August of 2014,” the report reads. “These two projects will bring over 1 million square feet of speculative development to a market with just under a 14% vacancy rate. As vacancy rates continue to decrease, the pendulum is starting to swing in the landlord’s favor with rental rates seeing a slight jump for the first time in four quarters.”

On the office space front, Memphis has continued to post positive activity. Xceligent reports nearly 40,000 square feet of office space absorbed in the second quarter.

That’s after the market absorbed 23,000 square feet of office space in the first quarter. Major tenants taking down space in the second quarter include Campbell Clinic, Pinnacle Agriculture and Waller Lansden Dortch & Davis, LLP, a new law firm to the Memphis market.

“The class B market is still considered to be in the tenant’s favor with over 3 million square feet available, most of which fall within the 1,000- to 5,000-square-foot range,” Xceligent reports. “Meanwhile, larger blocks of space continue to remain scarce while rates have stabilized.”

Moving on to retail, vacancy rates are stable at 20.6% compared to 22.1% third quarter of last year, according to Xceligent. The Downtown Memphis market benefited from Raymond James announced its intent to stay at Raymond James Tower, which was previously known as Morgan Keegan Tower, for another 10 years.

Although the Memphis retail market vacancy rate was able to stay relatively stable this quarter, Xceligent says vacancy rates are expected to increase the second half of the year as the market braces for FedEx Express’ move out of 75,000 square feet at Lenox B.

Throughout the second quarter of 2014, Xceligent reports the Memphis retail market continued to see overall positive activity with over 50,000 square feet absorbed. Overall year-to-date absorption has grown to over 150,000 square feet to major tenants like Fellowship Church of Memphis and Great American Home Store. According to Xceligent, the largest lease signed this quarter was American Car Center at 2660 South Mendenhall Road.

“The Tin Roof announced plans to sublease 11,000 square feet at 315 Beale Street, Hard Rock Café’s old stomping ground downtown,” Xceligent reports. “Meanwhile, Hard Rock is still undergoing construction on its new digs down the street in a 24,000 square foot space at the Lansky Bros. building. Vacancy Rates are continuing to inch downward, now at 11.6% compared to 12.1% second quarter last year, while rental rates are decreasing despite the dip in supply.”