2012 HUNTSVILLE OVERVIEW
The Huntsville commercial real estate market experienced a stable but stagnant 2011.
Huntsville’s retail market showed positive absorption, and retail vacancy rates have decreased each year since 2008. Several developments that were previously on hold broke ground in 2011, and this trend should continue. Huntsville unemployment rates remain low and consumer earnings high, which should lead to lower vacancies again in the retail sector for 2012.
Office vacancies increased slightly as many companies are taking a conservative approach until defense budgets and the upcoming elections better define the area’s growth prospects. The vacancy rate in 2012 is expected to climb as several large buildings in and around Redstone Arsenal add office product to the market.
The industrial sector was active in the 10,000 to 20,000 square feet range, but larger buildings continue to show high vacancies. The Jetplex industrial market has been hit with several large plant closings. Hopefully that trend has subsided and new industry can replace and refill those existing buildings. We expect the industrial sector to recover and vacancies to drop slightly in 2012.
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