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 After two years of positive absorption, the overall market posted -90,549 sf absorption. Occupancy dropped slightly to 90.06%, but remained higher than 2013 and 2014. While the numbers marked a slight downtick from the previous year, confidence remains high for Birmingham’s office market.

The Central Business District has been buzzing for a while now with activity from the successful Up-town entertainment district to the growing Parkside District around Regions Field and Railroad Park. Redevelopment projects and new construction for office buildings, apartments and retail spaces are being announced regularly. These projects have come from out-of-state developers and investors, as well as from Birmingham area business owners looking to make their mark and invest in the city’s revitalization.
The suburban submarkets posted modest in-creases in rental rates while also marking slight dips in occupancy during 2015 with the exception of the Highway 280/I-459 submarket. This submarket may have already been bolstered by the move of Trinity to the new Grandview Medical Center campus as the 280/I-459 area posted increases in both occupancy and rental rates.
2015 was another record year for larger office buildings trading, with sales totaling over $256 mil-lion. Several out-of-state investors expanded their footprints into Birmingham with the purchase of Class-A office buildings, eight over 100,000 sf. Notable sales included Wells Fargo Tower, Meadow Brook North and Inverness Center. During 2014 and 2015, the Birmingham office market saw more Class-A office buildings trade than in the eight pre-vious years combined.
FUTURE:
A vibrant redevelopment scene in the CBD and projects popping up in the suburban submarkets, especially around the Grandview Medical Center and Highway 280 corridor, will continue to set the Birmingham Office Market up for continued growth in the coming years, and instill confidence in its future.

Yours Truly,
Steve Graham, MAI, CRE
Mike Graham, CPM, SIOR[/fusion_text][/fusion_builder_column][fusion_builder_column type=”1_4″ last=”yes” spacing=”yes” center_content=”no” hide_on_mobile=”no” background_color=”” background_image=”” background_repeat=”no-repeat” background_position=”left top” hover_type=”none” link=”” border_position=”all” border_size=”0px” border_color=”” border_style=”” padding=”” margin_top=”” margin_bottom=”” animation_type=”” animation_direction=”” animation_speed=”0.1″ animation_offset=”” class=”” id=””][fusion_imageframe lightbox=”no” gallery_id=”” lightbox_image=”” style_type=”none” hover_type=”zoomin” bordercolor=”” bordersize=”0px” borderradius=”0″ stylecolor=”” align=”none” link=”https://www.grahamcompany.com/wp-content/uploads/2016/05/BHM_graham_report_office_2016.pdf” linktarget=”_blank” animation_type=”0″ animation_direction=”down” animation_speed=”0.1″ animation_offset=”” hide_on_mobile=”no” class=”” id=””] [/fusion_imageframe][fusion_text]

BHM Office Report – 2.63MB

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