Industrial Market

In 2007, Birmingham’s industrial market continued the pattern of growth and absorption that occurred in 2006, though at a more moderate pace. Total inventory square footage increased 421,680 sf and overall occupancy at year end was 86.2%, a 3.2% increase from the same time in 2006. Annual absorption for the market was 315,153 sf. The majority of the increase can be traced to the Oxmoor Valley submarket, which saw a 4.3% jump in occupancy, and 117,951 sf of absorption, as well as the Southern and Southwestern submarkets, which together had an increase in occupancy of 5.0% from fourth quarter 2006, and 147,537 sf of annual absorption.

In terms of different property types, all of the market’s positive absorption was in bulk distribution space, with 353,867 square feet of absorption during 2007. Meanwhile, office/warehouse and service center space was relatively flat with 4,118 square feet and 34,596 square feet of negative absorption, respectively. Most growth was generated through the expansion of existing operations or relocation within the market, reflecting a strong, balanced economy. While the Birmingham region saw no major relocations to the area, outside interest in the market remains high, with automotive suppliers, data centers and biomedical research companies continuing to consider operations in the Birmingham region.

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