Birmingham’s Office Market had another active year with overall occupancy of 87%, and the overall rental rate increasing to $20.14, up 0.84% from the previous year. Three of Birmingham’s five office submarkets, CBD, Midtown, and Vulcan/Oxmoor posted positive absorption and an uptick in rental rates.

There was a continued trend for large office product trading with 16 sales greater than 25,000 sf, representing more than $189 million in transaction values. The largest sale transaction of the year was in Liberty Park, a 200,000 sf office building fully leased to Encompass Health which offered 10 plus years remaining on its lease at the time it traded. The sale price was an impressive $372.50 psf. 2019 saw several other class-A buildings trade including Lakeshore Park Plaza in the Midtown submarket, 1800 & 1900 International Park in the Highway 280/I-459 submarket, and the Land Title Building in the CBD, continuing a trend of class-A office sales the Birmingham market has experienced during the last several years.