The Birmingham Office Market posted -16,626 sf of absorption in 2017. Confidence in the office market remains high with new developments in the pipeline, redevelopments beginning to come to fruition, and local companies continuing to grow.
The Highway 280 / I-459 submarket was the strongest performing submarket in 2017, posting 249,598 sf of positive absorption. The Southern / I-65 submarket had a strong year too, posting 30,586 sf of positive absorption.
During 2017, there was more than $175 million in building sales over 25,000 sf. The largest office sale transaction of the year was the Wildwood Office Campus. These three buildings sold to an out-of-state investor for $34.4 million. Additionally, the four buildings at Meadow Brook traded for $30.5 million. In all, there were eleven office buildings with more than 100,000 sf that changed hands in 2017, continuing a record trend of Class A office sales.
A vibrant redevelopment scene in the CBD and projects popping up in the suburban submarkets, especially around the Grandview Medical Center and Highway 280 corridor, will continue to set the Birmingham Office Market up for continued growth in the coming years, and instill confidence in its future.
Steve Graham, MAI, CRE
Mike Graham, CPM, SIOR