Exclusive: Substantial economic impact projected for Downtown site

By Wendy Guzmán – Reporter, Memphis Business Journal

January 7, 2025

The Memphis Brooks Museum of Art’s move Downtown is projected to generate hundreds of millions of dollars in economic impact from construction alone.

The 122,000-square-foot facility, located at the corner of Union Avenue and Front Street, broke ground in July 2023. The new museum — to be renamed the Memphis Art Museum — is expected to open in 2026.

Once operational, the museum is projected to generate at least $26 million in annual economic impact, with more aggressive estimates reaching up to $94 million per year.

Construction and investment impact

A recent study by Younger Associates analyzed the economic impact of the museum’s relocation using operating data and projections.

The report estimates a total construction capital investment of $197 million, including $25 million for demolition, site work, and relocation, and $172 million for the new facility.

Construction is expected to support approximately 1,400 direct and indirect jobs, with an annual payroll of $97 million. When accounting for broader economic effects, the total one-time impact of construction is projected to reach $355 million.

The overall project budget is $180 million, with the capital campaign nearing completion. The State of Tennessee contributed $12.5 million through its fiscal year 2025 budget, helping push fundraising to nearly 90% of its goal at the time.

First Horizon Corp. was an early supporter, contributing $2 million to the project.

“Our decision to invest early in the Memphis Art Museum project is because we believed it would be a game changer for Downtown and a long-term asset for the region,” said CEO Bryan Jordan. “The museum enriches the community through art, education, and cultural engagement.”

Ongoing annual impact

At a baseline level, the museum’s operations and visitor spending are expected to generate more than $26 million annually, supporting about 216 jobs and more than $12 million in wages.

Under more ambitious projections, annual economic impact could reach as high as $95 million, supporting approximately 745 jobs and $37 million in annual payroll.

Visitor numbers are expected to increase significantly with the move Downtown. Annual attendance is projected to grow from about 125,000 visitors at the current Overton Park location to nearly 299,000 at the new site.

Out-of-county visitation is expected to rise even more sharply, from about 31,000 visitors annually to roughly 179,000.

As a result, visitor spending is projected to increase from about $14 million to $80 million annually. Lodging-related spending alone could grow from approximately $550,000 to more than $3 million per year.

Retail spending tied to museum visits is also expected to rise, from about $7.25 million currently to more than $41 million annually.

Facility features and design

The new Memphis Art Museum will include a 10,000-square-foot courtyard and a shared pedestrian plaza with the adjacent Cossitt Library. A rooftop space will offer views of the Mississippi River and Downtown.

The facility will feature 50% more gallery space and significantly expanded areas for displaying art compared to the current Brooks Museum in Overton Park.

The project is being designed by Herzog & de Meuron in collaboration with Memphis-based archimania. Grinder, Taber & Grinder is serving as the general contractor.