2019 Huntsville Market Survey
The Huntsville commercial real estate market continued its hot streak in 2018 with all three
sectors showing low vacancies. Cranes scatter the skyline as numerous new projects are under
construction with more in the pipeline.
The office market continued to improve with 720k sf of positive absorption in 2018
and decreased vacancy in every submarket. Most new office construction centers in the
Cummings Research Park (CRP) area. Several new multi-use projects, including MidCity
Huntsville, will be incorporating a Class A office component.
Demand is strong for industrial space, causing an increase in rental rates as demand
is greater than supply. Industrial vacancy did increase slightly in 2018, primarily due to
two large properties recently going dark. These two properties should backfill quickly
as large blocks of space in the market are scarce. By 2022, an estimated 3+ million sf of
new industrial space will be added to the Huntsville market.
Retail growth continues over the entire Huntsville metro area and vacancy remains
strong at 7.73%. MidCity Huntsville added REI and Dave & Busters to its tenant list. The
new baseball stadium at Town Madison will be ready for the 2020 season with several
multi-family and retail projects following. Downtown Huntsville will see the addition of
four new hotels to help alleviate lack of rooms in the Central Business District.