2020 Huntsville Market Survey
The Huntsville commercial real estate market experienced another stellar year in 2019 with all sectors showing lower vacancies. Activity has been especially strong in the Central Business District (CBD), where four new hotels are under construction, as well as Cummings Research Park (CRP) and the Greenbrier area.
The office market continued to improve with 10.40% vacancy and positive absorption of 81,000 sf. CRP was once again the most active market with several large projects including BAE, Blue Origin, and Radiance Technologies nearing completion. Additionally, Redstone Gateway is adding several new office buildings to its campus.
Demand for industrial space remained strong as reflected in the 5.84% vacancy rate. Several large blocks of space were leased in 2019 and the outlook continues to be healthy. The industrial market has experienced a shortage of new construction, but that should be changing in the next two to three years as several developments have been announced in the Jetplex and Greenbrier markets.
Land prices continue to escalate in the CBD with recent comps trending to more than $50 psf for prime locations. Retail development remains active, especially in mixed-use properties like Mid-City and Stovehouse. Multi-family development is still active with several projects under construction.