huntsville AL

The 2014 Huntsville commercial real estate market performed well in the retailand industrial sectors. The office market, however, continued to struggle with higher vacancies.

The vacancy rate in the industrial market fell to 8.97%, the lowest the Huntsville market has experienced since 2008. The largest contributor to the drop in 2014 vacancy was Remington’s lease of an 800,000+ sf building within Jetplex Industrial Park. The Remington news coupled with the recent Polaris announcement has greatly improved the Huntsville industrial outlook for 2015 going forward.

The retail market was active in 2014. Several retailers new to the market, including Cabela’s, Sprouts, Whole Foods and At Home, announced plans to open Huntsville locations. Vacancy in the retail sector actually rose during 2014 to 12.92%, but much of this vacancy was found in an older enclosed mall that will likely be redeveloped in the coming years. The Jones Valley and Madison/Highway 72 areas remained the strongest markets in 2014.

Office market vacancy increased again in 2014 to 18.02%, while the multi-tenant vacancy rate increased to 24.93%. The Cummings Research Park (CRP) market has continued to struggle as defense spending cuts and new construction on Redstone Arsenal impacted the overall market. The outlook for 2015 is cautiously optimistic; it appears that the worst could be over and a long, slow recovery is about to begin.

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HSV Graham Report 2015