Bham's 2010 commercial real estate market rated a flat '5'
Birmingham Business Journal -
November 19, 2010
According to Brad Moffatt, vice
president of EGS Commercial Real Estate’s industrial division, several large
plant closures, downsizings and warehouse consolidations have significantly
impacted the market.
“The industrial vacancy rate in Birmingham is 23.5 percent, which is tied for the highest vacancy rate among all first- and second-tier real estate markets in the U.S.,” Moffatt said.
Bill Pradat, president of EGS Commercial Real Estate, said the central business district remained relatively strong, as the only Birmingham submarket with year-to-date positive direct absorption of 56,792 square feet.
The Midtown submarket continued to average a 94 percent occupancy rate, with an average rental rate of $20.54 a square foot. The Vulcan-Oxmoor submarket, which includes older class B buildings and business park space, continued to fall from 85.4 percent occupancy to 78.1 percent this year.
Emris Graham, senior vice president of EGS Commercial Real Estate, said the western area’s occupancy rate rose from 82.7 percent last year to 86.4 percent this year. The eastern market experienced highest occupancy loss, declining from 89.4 percent to 87.3 percent.
“Vacancy has increased across all retail submarkets, which has pushed rental rates lower,” Graham said. “Currently, there is very little new development taking place in the market, with the exception of several grocery-anchored shopping centers.”
Read the full story on the Birmingham Business Journal' s website.
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