2015 Birmingham Office Market Review with Blake Crowe, CCIM

blake_bw_loOver the past two or three years, I have begun the office portion of the Southpace newsletter by saying something along the lines of, “Are we finally seeing the end of the tunnel?”

Unfortunately for the Birmingham office market, 2015 was not our year to break through with huge rebounds.

In fact, as of the end of the 3rd quarter of 2015, the market has posted a net absorption of -90,000 SF. In other words, we have lost approximately 90,000 SF in our multi-tenant inventory. Continue reading “2015 Birmingham Office Market Review with Blake Crowe, CCIM”

Featured Property: New South Federal Building

NSFThis week’s featured property, the New South Federal Building, is the perfect opportunity for anyone looking for office space located in the heart of downtown.

Situated at the corner of Third Avenue North and Richard Arrington Jr. Boulevard, this 66,519 square foot building is in a prime location with convenient access to Red Mountain Expressway, I-59, I-65, as well as City Hall, Jefferson County Courthouse, Hugo Black Courthouse and U.S. Federal Courthouse. Continue reading “Featured Property: New South Federal Building”

Office Market with Blake Crowe, CCIM

Blake CroweI began last year’s office report by posing the question, “Are we finally seeing the end of the tunnel?” I believe we’re closer to the end of the tunnel at this point in time, but we’re not through it yet.

Vacancy levels have improved slightly from where we were this time last year. The 3rd quarter vacancy rate in 2013 was 14.1%. Currently, the Birmingham vacancy rate is approximately 13.4%. To have improved at all this year says a lot about the Birmingham market, based on the fact that we lost several large law firms in 2014. Haskell Slaughter and Johnston Barton both shut their doors this year. Those two firms alone combined for over 100,000 SF in tenant reduction for the market. Even with those tenants being removed from our numbers, we still had a modest decrease in vacancy.

Continue reading “Office Market with Blake Crowe, CCIM”

CCIM/NAIOP Central Alabama Market Symposium Recap

stuttsatsymposium
Southpace Broker Stutts Everette presents the retail market overview at the Market Symposium…in the dark.

Last Friday, Southpace brokers attended the 21st Annual CCIM/NAIOP Central Alabama Commercial Market Symposium. Although the majority of downtown Birmingham lost power that morning, the speakers didn’t let the darkness deter them and the conference continued successfully. See below for a recap of what was discussed regarding each market.

Office Market Recap – By Blake Crowe, CCIM

Continue reading “CCIM/NAIOP Central Alabama Market Symposium Recap”

Exclusive Use Rights for Office Real Estate?

Example of office, retail and residential mixed-use project.
Example of office, retail and residential mixed-use project.

By Blake Crowe, CCIM

For those in commercial real estate, specifically retail real estate, you’re familiar with Exclusive Use Rights – a tenant can (and generally should) require a landlord to prohibit leasing space to another tenant selling the same product, or allow any other specified activities that could interfere with the success of their business. Typically this Exclusive Use component of the lease is based on the property itself.

While this is nothing new to the retail segment, oddly enough, this idea of Exclusive Use is now also spreading into office real estate.

Why? Because the popularity of creative office spaces and mixed-use properties continues to increase.

Continue reading “Exclusive Use Rights for Office Real Estate?”

2013 Office Market Review with Blake Crowe, CCIM

Blake CroweAre we finally seeing light at the end of the tunnel? Birmingham’s office market appears to be reaching acceptable vacancy levels.

The 3rd quarter vacancy rate in 2011 was 17.5%. In 2012, the vacancy rate in the same period was 19.6%. Currently, the vacancy rate for Birmingham is approximately 14.1%. To have a positive swing of this magnitude is great for our market. In the 3rd quarter, we’ve had a positive absorption of approximately 112,000 SF. Year-to-date, we’ve had a positive absorption of approximately 122,000 SF. For a market that has approximately 18,500,000 SF of office space, that’s another sign of improvement.

Continue reading “2013 Office Market Review with Blake Crowe, CCIM”

Office Site Selection: The most critical question to ask

Downtown Birmingham, AlabamaBy Southpace Broker Blake Crowe, CCIM

I recently read an article in the Birmingham Business Journal that discussed ten things a tenant should ask before choosing office space. While all ten were fair questions that would prove informative and beneficial for the tenant, I believe the most critical question to ask is, “Why don’t we hire a competent tenant representation broker?”

Continue reading “Office Site Selection: The most critical question to ask”

Birmingham’s Office Market in 2012

By Blake Crowe, CCIM

As Birmingham’s office market goes, status quo is status quo. The vacancy rates have not changed significantly over the past few years. The 3rd quarter vacancy rate in 2011 was approximately 17.55%. As of the end of the 3rd quarter 2012, the vacancy rate was 19.6%.

In our opinion, this is not a significant swing based on a market that tracks approximately 18,500,000 square feet of office space. Continue reading “Birmingham’s Office Market in 2012”

Midtown Birmingham is city’s strongest office market in Q3

By Blake Crowe, CCIM

Our brokers have taken a look at the 3rd quarter of 2012 for our industrial and retail divisions. Now, let’s shift to our office division.

We track approximately 18 million square feet of office space in the Birmingham market. Overall, we had about a 15% vacancy factor during the third quarter. We did experience a slight negative absorption of about 28,000 square feet. Continue reading “Midtown Birmingham is city’s strongest office market in Q3”