Darrell Cobbins, a Memphis business leader and principal broker of Roundtable-member firm Universal Commercial Real Estate, shared his insights on the region's economic landscape and the critical role of education in driving sustainable growth in a conversation earlier this year with the Roundtable. Cobbins' perspectives provide insights on the opportunities and challenges facing Memphis, particularly in relation to workforce development and public safety.
Memphis’ Economic Diversity Key to Its Evolution
Cobbins described the Memphis commercial real estate as consistently steady, often avoiding the extremes of rapid booms or severe downturns.
"The Memphis market is as we've described it my entire career... it's never red hot and it's never ice cold," Cobbins noted.
He attributes this stability to the city's diverse economic base, which includes significant contributions from healthcare, logistics, and major corporate players based in Memphis, including FedEx, International Paper, AutoZone, and St. Jude’s.
And Cobbins says Memphis’ city leadership is ready to leverage that economic diversity to bring the city to a new place.
“Mayor Paul Young has a broad vision for Memphis and how we evolve, really wanting us to take those advantages that we have economically – the river, the rail, the air with FedEx – and to really position ourselves as a more global city,” says Cobbins, “like Atlanta envisioned itself forty years ago as an international city.”
Cobbins believes that leveraging these economic assets, while taking steps to ensure Memphis’ public education system is producing the talent needed to sustain them and to draw in more, will allow Memphis to thrive at new levels.
“With new vision, I think we'll kick it into high gear here shortly.”
The Importance of Workforce Development
Cobbins highlighted the link between education and the availability of skilled labor, which is essential for business growth and economic stability.
“Our economy is really diversified. Healthcare is a big industry here with Baptist Hospital, Methodist Hospital, and St. Jude is a big driver in the local economy. Then you have companies like FedEx, International Paper, and AutoZone, which are our big Fortune 500 corporations here.”
The challenge, as Cobbins sees it, is ensuring that the local education system can meet the needs of the evolving job market. With significant developments like Ford's Blue Oval City bringing electric vehicle manufacturing to the region, there is a pressing need for a workforce trained in high-tech and specialized skills.
“Your ability to serve your customers and clients is contingent upon having a population of folks whom you can train and equip with the knowledge and skills to do the jobs that you need them to do.”
Educational Challenges and Public Safety
Cobbins also touched on the intertwined issues of public safety and education. He pointed out that concerns about public safety impact not only the quality of life in the community but also the attractiveness of the region to potential investors and new businesses.
"Public safety is a big issue here," he stated, referencing a letter earlier this year from business leaders to Governor Bill Lee advocating for increased state investment in safety. “I know a lot of small businesses are wanting to make sure that safety and security is paramount for their employees and for the people who do business with them. That issue is so pervasive that it's affecting retailers, small business owners, and industrialists and it hangs over the local economy.”
Cobbins suggested that part of the solution to Memphis’ public safety issues could involve efforts to upskill Memphis’ talent pool. The Greater Memphis Chamber, he pointed out, is launching a major workforce development initiative to build three specific workforce skills centers in the neighborhoods experiencing the most need for skills development. Cobbins feels that such industry-driven skills training could have a positive ripple effect on public safety.
“[Greater Memphis Chamber] will be meeting people where they are and taking them through rapid skills development where they can have marketable skills that they can take out into the marketplace and begin to fill [the talent gaps for] the jobs that we know we need people for, or making sure that our people have the skills to transfer into those opportunities.”
A Broader Perspective on Educational Needs
Cobbins’ role on the State Board of Education, as gubernatorial appointee for the 9th Congressional District and the Board’s Vice Chair, has given him a broader perspective on the educational needs across Tennessee. He recounted a particularly eye-opening experience during one school visit during his State Board service which challenged his preconceptions about educational disparities.
"Being from Memphis, my first inclination when I hear free and reduced lunch is thinking about poor Black children,” Cobbins said. In visiting a public school near Knoxville with students of a very similar socioeconomic status, “Now I [saw] a school where all these kids are white, and I was like, ‘I have to shift my paradigm’," he recalled.
For Cobbins, the moment underscored the importance of addressing diverse educational needs across different communities in the state.
The Role of Major Corporations
Major corporations like FedEx play a pivotal role in Memphis' economic landscape. Cobbins highlighted FedEx's ongoing investments in the city, including the transformation of a former Gibson guitar factory into the new headquarters for FedEx Logistics.
This move not only brought hundreds of jobs to downtown Memphis but also signaled the company's commitment to the city's growth and development.
"FedEx of course continues to double down in Memphis... I think you'll continue to see some of the hometown entities like those corporations continue to grow and evolve here," he remarked.
Darrell Cobbins is President and Principal Broker of Universal Commercial Real Estate, based in Memphis. Mr. Cobbins also serves as gubernatorial appointee for the 9th Congressional District and Vice Chair of the State Board of Education, and as an At-Large Director on the board of the Tennessee Business Roundtable. Write to him at darrell@universalcommercial.com.