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birmingham AL
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2013 OVERVIEW The 2012 year provided positive net absorption, but at a slower pace than 2011. Economic drivers for Birmingham’s industrial economy continued to be dependent on automotive and manufacturing. On a state note, Hyundai in the Montgomery market added a 3rd shift, and Airbus launched a new $600m facility in Mobile. New development projects have been scarce, but there has been increased demand for most sectors as we close out 2012. 2012 rental rates decreased from the previous year for Bulk Distribution, and rates for Office/Warehouse increased slightly. Inflation rates and interest rates remained low. Except for the small segment of Service Centers, modest positive absorption was noted in all sectors with no one submarket markedly stronger. Occupancy remained relatively constant from 2010 and 2011 levels, and there remained a sizeable supply of sublease space, particularly in the South market. New projects for 2012 included the 1.0m sf distribution facility for Dollar General in Bessemer, and in the South submarket at the Shelby West industrial park, new development came on line in 2012: a distribution center for Crown Beverages, wholesale wine. Sales of Freestanding Industrial Buildings continued apace but slower than 2011. The recovery has become more of a process rather than an event. This may be the new normal as we look to 2013 with a sense of cautious optimism. Each year we thank our colleagues, clients and competitors for their efforts assisting us as we take pride providing another yearly review in the 2013 Graham Report. Yours Truly, |
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