2018 Huntsville Market Survey
All sectors of the Huntsville commercial real estate market performed well in 2017, with the office sector having its best year in more than a decade. Industrial and retail markets remained stable with low vacancy rates and an upward trend in rental rates.
Cummings Research Park (CRP), Huntsville’s largest office submarket, was the beneficiary of an increase in defense spending in 2017. This spending increase led to many defense firms needing additional space for an expanding workforce. The office sector had positive absorption of more than 840,000 square feet which helped drive down overall vacancy.
The retail market continued to perform well with vacancy rates falling to 7.49% as new developments began to replace older, outdated projects. Top Golf opened at MidCity Huntsville, the former Madison Square Mall site, and several other projects have been announced. The continued interest and success of mixed-use developments will enhance the Huntsville retail market.
Industrial vacancy declined again to below 6%, and companies are now experiencing a shortage for space in the 25k to 50k square foot range. The need for industrial facilities in west Huntsville near the Greenbrier area continues and overall rental rates have begun to increase.