Why Autocar Project Could Be Big News for Birmingham’s Commercial Real Estate Scene

Ogden Deaton, SIOR of Graham & Company represented the seller and John Coleman, SIOR of Graham & Company represented the buyer in the transaction bringing Autocar to Birmingham.

The deal for Autocar’s new heavy truck manufacturing plant in Center Point and Birmingham didn’t just create nearly 750 jobs.

Real estate experts say it could also create a ripple effect on real estate in the area.

Ogden Deaton of Graham & Co. represented the landlord in the deal that paved the way for Autocar’s new plant at the former Meadowcraft buildings on Pinson Valley Parkway in Center Point. John Coleman of Graham & Co. represented the buyer in that transaction.

Deaton said the most immediate impact of the deal was that it took 1 million square feet off the market, which was especially significant since large industrial spaces are increasingly difficult to find in the Birmingham industrial market. Deaton said the market has only gotten tighter in the 18 months since the deal.

Autocar officials said a big reason for choosing Birmingham was the strong supplier network that is already here to serve Mercedes, Honda and Hyundai. To that end, Deaton said part of the 1 million square feet at Autocar’s plant is available for suppliers.

He said there are not many existing buildings in the Pinson Valley area that are currently available.

More suppliers are expected to follow Autocar to the Birmingham market, which Deaton said could spark some new industrial buildings to accommodate them. He said that due to construction costs, new speculative buildings are probably not as likely as build-to-suit projects

But apart from that, Deaton and many others have said that the Autocar deal – and the high level of regional cooperation involved to get it done – is exactly what Birmingham needs more of.

“Autocar is a new company to the area, bringing new jobs,” Deaton said.

And if that keeps happening, the effect on overall real estate – not just industrial – in the Magic City could be huge.

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