2020 OFFICE MARKET SURVEY BIRMINGHAM, AL
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OFFICE
MARKET
SURVEY
BIRMINGHAM, AL
2020
65
20/
59
11
280 459
31
RENT RATE
SUBMARKET SF OCCUPANCY
(PSF)
Downtown 7.9M 87.18% $20.11
Midtown 5.2M 95.55% $22.41
Highway 280/
6.5M 82.41% $21.24
I-459 65
Southern/I-65 4.8M 91.50% $18.26
Vulcan/Oxmoor 2.7M 73.15% $16.61
OFFICE OVERVIEW
4 Graham & Co 2020 Office Market Survey | Birmingham, AL
Contents
4 Birmingham Office
Market Overview BIRMINGHAM OFFICE MARKET
6 Downtown OVERVIEW
10 Midtown Birmingham’s Office Market had another
14 Highway 280 | I-459 active year with overall occupancy of
18 Southern | I-65 87%, and the overall rental rate increasing
22 Vulcan | Oxmoor to $20.14, up 0.84% from the previous
year. Three of Birmingham’s five office
28 Office Services
submarkets, CBD, Midtown, and Vulcan/
30 Property Management Oxmoor posted positive absorption and
32 Corporate Services an uptick in rental rates.
36 Graham Transactions There was a continued trend for large
37 Availabilities office product trading with 16 sales
42 Graham & Co 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
5
building fully leased to Encompass Health [ 27.2 MILLION SF TOTAL ]
which offered 10 plus years remaining SINGLE TENANT 8,989,236 SF
on its lease at the time it traded. The MULTI-TENANT 18,232,043 SF
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.
OVERALL OCCUPANCY RENT RATE
87.01% $20.14
FUTURE
More activity is anticipated in the
CBD and the suburban submarkets.
PER SF
Opportunity Zone tax incentives,
urban planning and connectivity, UAB’s 0.99% 0.84%
continued growth, and employers adding PERCENT PERCENT
more than 10,000 jobs in Birmingham
during 2019 are indicators for growth
and positive momentum in the coming
years.
2019 AVERAGES:
MULTI-TENANT: OVERALL:
Occupancy 80.61% 87.01%
Rate PSF $20.88 $20.14
6 Graham & Co 2020 Office Market Survey | Birmingham, AL
DOWNTOWN MARKET
MULTI-TENANT: OVERALL:
Occupancy 80.00% 87.18%
Rate PSF $20.91 $20.11
7
[ 7.9 MILLION SF TOTAL ]
SINGLE TENANT 2,845,200 SF
MULTI-TENANT 5,080,545 SF
Birmingham’s Central Business District
posted 65,855 sf of positive absorption in
2019. Overall occupancy levels increased
by 0.83% to 87.18%. Overall rental rates
increased to $20.11 psf, an almost 1% increase OVERALL OCCUPANCY RENT RATE
87.18% $20.11
over the prior year.
In 2019, Shipt leased 60,000 sf for its
expanded CBD footprint, and in doing so
PER SF
created changes to Birmingham’s skyline.
Wells Fargo Tower became Shipt Tower and
will soon display its signage, signaling a
0.83% 0.97%
PERCENT PERCENT
change for Birmingham which is becoming a
more tech oriented “hot spot”. The CBD had
several other significant lease transactions 31
including: PNC Bank’s lease of 15,309 sf at
y
One Federal Place; Wells Fargo’s lease of i rp
or t
Hw
A
r-
15,000 sf at 1901 Sixth Ave (formerly Harbert Me
sse
N
Plaza), and several large renewals including Ave
urt 1s t
Co use
Ho
Maynard Cooper’s renewal of 118,518 sf at Ave
N
S
8 th 31
Ave
1901 Sixth Ave and Burr & Forman’s renewal Ave
N 280
3 rd
6 th
21
of 104,514 sf at Shipt Tower. N
20t
st
Ave
El t o
h
St
3r d
19
N
St
Ave
n B
th
The CBD submarket has much to offer 1st
St
Ste
p he
potential office tenants and owners. Ave
S
Ave
S
ns E
3r d 8th
With walkability to a multitude of quality
xp w y
restaurants and entertainment venues, the ge
lle ) H ig hl a
nd
Co B
(UA Ave
CBD is more appealing than ever to those Five
Points
seeking an urban lifestyle.
8 Graham & Co 2020 Office Market Survey | Birmingham, AL
SIGNIFICANT LEASES - DOWNTOWN MARKET
BUILDING SF TENANT RENEWAL/LEASE
1901 Sixth Ave 118,518 Maynard Cooper Renewal
Wells Fargo/Shipt Tower 104,514 Burr & Forman, LLP Renewal
Wells Fargo/Shipt Tower 60,038 Shipt New
Renasant Place 19,879 Bressler, Amery & Ross PC Renewal
Intermark Building 18,277 Bridgeworth Financial New
One Federal Place 15,425 Butler Snow, LLP Renewal
One Federal Place 15,309 PNC Bank, National Association New
1901 Sixth Ave 15,000 Wells Fargo Bank, N.A. New
Concord Center 13,699 EGS Commercial Real Estate, Inc. New
Renasant Place 10,852 Pittman, Dutton & Hellums, PC Renewal
1901 Sixth Ave 10,052 Waller Lansden Renewal
Financial Center 9,472 Spotswood, Sansom & Sansbury, LLC New
Financial Center 9,158 Campbell Guin, LLC Renewal/Expansion
Martin Biscuit 8,966 Hearst Communications Renewal/Expansion
Financial Center 7,894 Aerotek, Inc. New
101 Parkside 7,300 Knight Eady Sports Group, LLC New
Renasant Place 6,810 Hall Booth Smith, P.C. New
212 20th Street North 6,660 Sigao Studios New
SAKS Building 6,571 Watkins & Eager, PLLC New
The Plaza 5,785 General Services Administration New
Financial Center 5,736 Level 3 Communications, LLC Renewal
FINANCIAL CENTER
Matt Gilchrist and Sam Carroll
of Graham & Co represented
the Landlord in its lease of
9,472 SF to Spotswood, Sansom
& Sansbury, LLC in this class-A
office located in the heart of
the CBD
9
SIGNIFICANT SALES - DOWNTOWN MARKET
DATE BUILDING SF PRICE PSF BUYER
3/4 213 24th St. N. 9,000 $420,000 $46.67 Rasoli Property, LLC
4/26 2007 3rd Ave. N. 9,300 $800,000 $86.02 Nakatomi Trading Co., LLC
4/30 2427 1st Ave. N. #101 7,800 $340,000 $43.59 Emily Summerville Hair & Makeup, LLC
6/2 2317 3rd Avenue North 28,000 $2,588,500 $92.45 The Bird's Nest, LLC
6/6 618 19th Street North 19,978 $2,062,000 $103.21 Fast Dog, LLC
8/5 1820 3rd Ave. N. #401 6,500 $1,200,000 $184.62 JBL Real Estate Holdings, LLC
9/4 2214 2nd Avenue N. 8,632 $1,625,000 $188.25 Hiatus Holdings, LLC
9/20 2121 1st Avenue N. 13,500 $2,200,000 $162.96 2121 First Avenue, LLC
9/26 101 12th Street South 13,174 $1,095,000 $83.12 Matthew J. Hogan
10/16 3710 4th Avenue S 7,400 $865,000 $116.89 Blue Marlin Properties, LLC
600 20th Street North
12/18 26,116 $3,300,000 $126.36 Land Title Building, LLC
(Land Title Building)
SHIPT TOWER 1901 SIXTH AVE
Shipt leased 60,038 sf for Dan Lovell of Graham & Co
its second location in this represented Wells Fargo in
class-A office building. Its its lease of 15,000 sf in this
logo will occupy signage on newly re-branded class-A
two prominent buildings in office tower.
Birmingham’s skyline.
10 Graham & Co 2020 Office Market Survey | Birmingham, AL
MIDTOWN MARKET
MULTI-TENANT: OVERALL:
Occupancy 94.58% 95.55%
600 UNIVERSITY PARK PLACE
Rate PSF $23.08 $22.4111
[ 5.2 MILLION SF TOTAL ]
SINGLE TENANT 935,050 SF
MULTI-TENANT 4,273,482 SF
Midtown continued in 2019 as Birmingham’s
strongest submarket, posting 40,070 sf of
positive absorption. Overall occupancy OVERALL OCCUPANCY RENT RATE
95.55% $22.41
reached 95.55%, topping the previous year
with an increase of 0.77%. Overall rental
rates increased by 1.52% to $22.41 psf, and
PER SF
0.77%
large blocks of space continue to be difficult
to find.
Berkley Industrial Comp (formerly American
PERCENT
1st
1.52%
Ave
PERCENT
N
ve
Mining) leased 16,000 sf at Brookwood nt A
rmo
8th Ave N C lai Highland
S Rd
Metroplex I for the largest significant lease Ave Ave
c l ai r
11 3rd on t
S M
in the submarket. Sales activity included Ave
8th
20t
MOUNTAIN Rd
Lakeshore Park Plaza, a 196,871 sf, class-A lo
h
Five BROOK
St
al
Points
t ev
office building which sold to an out-of-state
on
M
Ca
investment group for $30,500,000 ($154.92
ha
ba
R d SW
psf). Next door, 2200 Lakeshore also traded.
Rd
e
Av 280
y
The 39,922 sf office building sold to a local Val
le
oo r R d
e va l lo
Oxm
investment group for $8,250,000 ($206.65 H O M E W O OD
Mo n t
Brookwood
psf). Samford
Mall
Gr
Univ
e en
Dr
The Midtown submarket continues to be one ore
Sp
sh
ak e
r in
L d
st R
gs
of the most desirable locations with easy Cre
d
xmoo r R
Hwy
Wildwood s
access to the city center and close proximity a de
Centre Sh
wy V E S TAV I A
to the Over-the-Mountain neighborhoods
W O
P
k
e
sh o r
Lake
and amenities. 31
Co l
u
Ave
m b ia na
o rd
A lf12 Graham & Co 2020 Office Market Survey | Birmingham, AL
SIGNIFICANT LEASES - MIDTOWN MARKET
BUILDING SF TENANT RENEWAL/LEASE
Metroplex I 16,000 Berkley Industrial Comp (Formerly American Mining) New
600 University Park Place 13,814 Warren Averett Companies, LLC Renewal/Expansion
2200 Magnolia Avenue 11,987 Bayer Properties New
Lakeshore Park Plaza 10,726 SSOE, Inc. New
Synovus Center 9,517 Borland Benefield New
1900 Crestwood Boulevard 9,193 ATS Holdings Renewal/Expansion
Lakeshore Park Plaza 8,726 Prepaid Technologies, Inc. New
790 Montclair Road 7,894 The Sleep Disorder Center of Alabama Renewal
500 Mtn Brook Office Park 7,177 Birmingham Hematology & Alabama Oncology Associates, LLC Renewal/Expansion
Lakeshore Park Plaza 6,777 Law Offices of Jeff W. Parmer Renewal/Expansion
3004-3008 Clairmont
5,800 Martin Advertising, Inc. New
Avenue South
Metroplex 5,400 Assurant New
LAKESHORE PARK PLAZA
This 196,871 sf class-A office building sold for
$30,500,000 to an out-of-state investment
group.13
SIGNIFICANT SALES - MIDTOWN MARKET
DATE BUILDING SF PRICE PSF BUYER
2/1 2130 Highland Ave. S. 20,000 $1,270,000 $63.50 2130 Highland Avenue South, LLC
2614 19th Street South
3/18 7,492 $1,520,000 $202.88 19th Street South, LLC
(Former Western HQ)
3122 Green Valley
3/28 1,400 $525,000 $375.00 Bruno Family, LLC
Rd./3125 Autumn Ct.
4/5 408 Hollywood Blvd. 3,062 $450,000 $146.96 408 Hollywood, LLC
4/18 1020 26th St. S. 9,731 $3,597,706 $369.72 SSPS Partners, LLC
4/30 1771 Independence Ct. 2,886 $1,064,000 $368.68 PrimeHealth Properties Trust, LLC
6/7 2200 Lakeshore Dr 39,922 $8,250,000 $206.65 Main Street Holding Co, LLC
6/14 3490 Independence Dr. 21,072 $4,500,000 $213.55 Eloise Properties, LLC
7/8 2121 Highland Ave. S. 20,000 $5,059,402 $252.97 Progress Bank & Trust
2204 Lakeshore Drive Northridge East Apartments, LLC
7/31 196,871 $30,450,000 $154.67
(Lakeshore Park Plaza) Northridge West Apartments, LLC
9/26 2116 Rocky Ridge Road 3,438 $525,000 $152.71 Sones Properties, LLC
10/3 3928 Montclair Road 22,684 $3,000,000 $132.25 Jacpur, LLC
3415 Independence
11/19 Plaza (Homewood 17,000 $3,615,000 $212.65 Holy Trinity Homewood, LLC
Office Plaza)
2145-2151 Highland
Steriling Capital VI
12/18 Avenue (One Highland 64,524 $7,193,400 $111.48
One Highland Place, LLC
Place)
HOMEWOOD OFFICE PLAZA
Dan Lovell and Sam Carroll of Graham & Co
represented the seller in its disposition of this
17,000 sf Homewood office building. It sold to a
local investment group for $3,615,000.14 Graham & Co 2020 Office Market Survey | Birmingham, AL
HIGHWAY 280 | I-459
MARKET
MULTI-TENANT: OVERALL:
Occupancy 76.49% 82.41%
MEDICAL OFFICE BUILDING Rate PSF $21.89 $21.24
3570 Grandview Parkway15
[ 6.5 MILLION SF TOTAL ]
SINGLE TENANT 1,642,251 SF
MULTI-TENANT 4,880,411 SF
The Highway 280/I-459 submarket continues
to have strong appeal, and it had more
significant leasing than any other submarket
in terms of number of transactions in 2019.
Several opportunities are present for office
users seeking larger blocks of space.
The -330,290 sf of absorption in 2019 was
largely the result of Blue Cross Blue Shield of
Alabama vacating its space totaling 135,427
sf at Meadow Brook 500 along with Southern
Company relocating to the Colonnade Red
Roofs which left approximately 450,000 sf
of space vacant at Inverness Center. The OVERALL OCCUPANCY RENT RATE
82.41% $21.24
overall occupancy rate dipped to 82.41%.
The overall rental rate increased, however,
to $21.24 psf, a slight increase of 0.78% from
PER SF
the previous year.
The largest Birmingham office sale 5.79% 0.78%
transaction was located at 9001 Liberty Park, PERCENT PERCENT
indicating investor interest in the Highway
280/I-459 submarket continued in 2019.
280 Rd Liberty Park
The 200,000 sf, class-A office building,
on
Dr
er t
home to Encompass Health, traded for a
Ov
or e
es h
L ak Cahaba
very healthy $74,500,000 ($372.50 psf). Heights
Encompass had a long-term lease in place Summit
V E S TAV I A
at the time of the sale. The submarket had Grandview
several other office sales in 2019 including
Rd
d
R
Colonnade
na
e
that of 1800 & 1900 International Park, two Brook
Rocky Ridg
ad e
Highland
Alt
class-A office buildings totaling 211,142 sf. Inverness
These buildings were purchased by a local Meadow
Rd
Inverness
Brook
investor for $34,500,000 ($163.40 psf). Pkwy
Mill
Rd
Rd
Rd
280
Confidence in this area among investors and
l
ey
Caldwel
ge
d
Ri
le
ll
Va
da
c ky
a ll
ey
Ro
office users continues to be strong. Expect
ba
V
Old
ha
Ca
HOOVER 17
the Highway 280/I-459 submarket to pick 14
up further momentum and vacancy rates to Oak Mountain
State Park
decline in the coming years. 11916 Graham & Co 2020 Office Market Survey | Birmingham, AL
SIGNIFICANT LEASES - HIGHWAY 280 | I-459 MARKET
BUILDING SF TENANT RENEWAL/LEASE
2600 Meadow Brook 74,424 Allstate Renewal
Federal Reserve @ Liberty
48,968 General Services Administration New
Park
Grandview II 16,701 Grandview Medical Center New
Meadow Brook 1200 16,605 Momentum Telecom New
10 Inverness Center 16,000 J. Smith Lanier Renewal
100 Grandview Place 15,866 Merrill Lynch Renewal
3800 Colonnade 14,069 IllumiCare New
3700 Colonnade 13,441 RXBenefits, Inc. Expansion
1100 Lee Branch Lane 13,200 United Healthcare Group Renewal
Meadow Brook 100 12,960 ALDOT Renewal
10 Inverness Center 12,017 T-Mobile South, LLC Short Renewal
3800 Colonnade 10,351 Nike Renewal
1500 Urban Center 9,499 Wilson, Elser, Moskowitz, Edelman & Dicker Sublease
361 Summit Boulevard 9,403 Gaines, Gault, Hendrix, PC New
1400 Urban Center 8,450 O'Neal Manufacturing New
Meadow Brook 2700 8,207 Standridge Logistics & Consulting, LLC Renewal/Expansion
3800 Colonnade 7,216 Goodrich Management Renewal
31 Inverness Center 6,364 Ameriprise Financial Services New
Grandview I 6,210 Alabama Neurological Surgery and Spine New
3800 Colonnade 5,470 Jenkon Renewal
1000 Urban Center 5,446 Pathway Health New
Grandview II 5,020 Wettermark & Keith, LLC Short Term Extension
GRANDVIEW II 1800 & 1900 INTERNATIONAL PARK
Sam Carroll and Matt Gilchrist of Graham & Co Sam Carroll & Matt Gilchrist of Graham &
represented the Landlord in its lease of 16,701 Co represented a local investment group
sf to Grandview Medical Center in this class-A in its acquisition of two buildings within
office building located just off Highway 280. International Park. The 211,142 sf class-A office
buildings sold for $34,500,000.17
SIGNIFICANT SALES - HIGHWAY 280 | I-459 MARKET
DATE BUILDING SF PRICE PSF BUYER
1/14 200 Corporate Ridge Dr 4,456 $3,200,000 $718.13 Legacy Community Federal Credit Union
1800 & 1900
2/19 International Park (2 211,142 $34,500,000 $163.40 IP Birmingham II, LLC
Buildings)
2/8 1300 Corporate Dr 7,000 $1,000,000 $142.86 Snider Therapy Centers Inc.
3/6 2300 Resource Dr 13,027 $2,400,000 $184.23 Suttles and Aguilar, LLC
4/5 2016 Stonegate Trl 1,500 $287,362 $191.57 Conellaco, LLC
4/26 4984 Overton Road 6,861 $1,225,000 $178.55 Gyandev, LLC
Units 121 & 122 Building 1
5/14 2,858 $203,803 $71.31 JB Holding Company, LLC
Edenton Street
1200 Providence Park
5/16 2,160 $370,000 $171.30 5E Property, LLC
#200
6/17 3070 Green Valley Rd 9,960 $1,500,000 $150.60 Tiebos, LLC
9001 Liberty Parkway ARG EHBIRAL001, LLC (Global Net
6/24 200,000 $74,500,000 $372.50
(Encompass HQ) Lease)
7/12 1111 & 1112 Edenton St 8,400 $1,000,000 $119.05 Gallardo Family 2001 Living Trust
9/1 1100 Corporate Parkway 25,000 $4,100,000 $164.00 Sumerford Holdings, LLC
2015 Stonegate Trail,
9/10 1,500 $280,000 $186.67 SCP Stonegate, LLC
#105
9/27 3145 Green Valley Road 4,206 $1,050,000 $249.64 Henry Holding, LLC
Edenton Street Condos
10/28 Suites 111, 112, 1013, 1014, 18,895 $900,000 $47.63 Lifetime Solution, LLC
1023, 1121,1122, 1212, 1221
4898 Valleydale Road
11/25 10,444 $700,000 $67.02 Valleydale Revival, LLC
(Keith Building)18 Graham & Co 2020 Office Market Survey | Birmingham, AL
SOUTHERN | I-65
MARKET
MULTI-TENANT: OVERALL:
Occupancy 80.93% 91.50%
Rate PSF $18.16 $18.26
2111 PARKWAY OFFICE CIRCLE19
[ 4.8 MILLION SF TOTAL ]
SINGLE TENANT 2,691,514 SF
MULTI-TENANT 2,164,454 SF
The Southern/I-65 submarket has
consistently been a strong performer with
occupancy rates greater than 90% for more
than a decade. The overall occupancy was OVERALL OCCUPANCY RENT RATE
91.50% $18.26
91.50% in 2019, down 1.86% from the previous
year. The overall rental rate increased just
slightly by 0.02% to $18.26 psf. Although it
PER SF
experienced -90,160 sf absorption in 2019,
that number represents less than 2% of the
total size of a submarket that has remained
1.86% 0.02%
steady, a trend that is expected to continue. PERCENT PERCENT
The largest new lease in the submarket
VESTAVIA
Ave
C o l u mb
was to a subsidiary of Encompass Health, o rd
Alf
R idge Rd
Print Promotions Group; it leased 36,133 sf 31 d
iana
a R
d en
Rd
at 2100 Columbiana Road. The submarket Tyler Rd
Alta
ck
C a l d w e l l Mil
y
Ro
had five sales transactions greater than $1 Rocky
HOOVER Ridge
million in 2019. The largest sale was the R
d
l Rd
Lo
e
dg
22,816 sf office building at 1550 Woods of
rn a
Ri
y
ck
Rd
Ro
Riverchase for $3,350,000 ($146.83 psf) to Ol
d
a local ownership group. 17
Galleria
Easily accessible by both I-65 and I-459,
Rd
31 Riverchase
le
da
Pkwy East
ey
many of the Southern submarket buildings
ll
Va
150
Riverchase
are surrounded by lush wooded areas, nice Rd
119
ll ey
landscaping and rolling terrain, all of which ab a
Va
C ah
contribute to the area’s reputation as a
convenient and desirable place to work. 261
Oak Mountain
PELHAM State Park20 Graham & Co 2020 Office Market Survey | Birmingham, AL
VESTAVIA CORPORATE OFFICE
100 Vestavia Parkway
BARBOUR BLDG @ HIGHPOINT OFFICE PARK 1550 WOODS OF RIVERCHASE
This 49,934 sf office building was purchased Sam Carroll of Graham & Co represented
the seller in its disposition of this 22,816 sf
for $2,375,000 by a local investment group with
Riverchase office building which sold for
plans for an extensive renovation. $3,350,000.21
SIGNIFICANT SALES - SOUTHERN | I-65 MARKET
DATE BUILDING SF PRICE PSF BUYER
1/31 2112 Rocky Ridge Rd. 3,520 $400,000 $113.64 Eladio Dominguez
The Board of Dental Examiners of
1/31 2229 Rocky Ridge Road 10,000 $1,070,000 $107.00
Alabama
5356 Stadium Trace
2/12 5,083 $925,000 $181.98 RCC Real Estate, LLC
Pkwy. #200
1550 Woods of
3/15 22,816 $3,350,000 $146.83 Woods of Riverchase, LLC
Riverchase
5500 Southlake Park
3/25 6,000 $585,000 $97.50 MSMM Real Estate, LLC
#100/150
6/17 3425 Pelham Parkway 6,000 $625,000 $104.17 Harmon Accounting, LLC
6/28 2 Riverchase Ridge 12,275 $1,300,000 $105.91 Key 7 Management Services
7/30 2021 Shady Crest Dr. 2,474 $450,000 $181.89 Amin Properties, LLC
8/28 2104 Rocky Ridge Road 6,120 $550,000 $89.87 Mipatula Estates, LLC
9/30 601 Vestavia Parkway 43,934 $2,375,000 $54.06 Barbour Associates, LLC
SIGNIFICANT LEASES - SOUTHERN | I-65 MARKET
BUILDING SF TENANT RENEWAL/LEASE
2100 Columbiana Road 36,133 Print Promotions Group (Encompass Health subsidiary) New
2176 Parkway Lake Drive 10,822 Alabama Board of Pardons and Paroles New
1849 Data Drive 8,781 Star Asset Security, LLC New
The Offices at 3000
7,322 ENGS Commercial Capital, LLC New
Riverchase
Vestavia Hills City Center 6,912 Myrick Gurosky & Associates, Inc. Relocation/Renewal22 Graham & Co 2020 Office Market Survey | Birmingham, AL
VULCAN | OXMOOR
MARKET
MULTI-TENANT: OVERALL:
Occupancy 60.33% 73.15%
PATRIOT MIDTOWN PARK Rate PSF $16.23 $16.61
210 Wildwood Parkway23
[ 2.7 MILLION SF TOTAL ]
SINGLE TENANT 875,221 SF
MULTI-TENANT 1,833,151 SF
Birmingham’s smallest submarket, Vulcan/
Oxmoor, had a stronger year in 2019 with
44,008 sf of positive absorption. The OVERALL OCCUPANCY RENT RATE
73.15% $16.61
overall occupancy of 73.15% was an increase
of 1.62% from the prior year.
Transaction activity in the submarket
PER SF
included a new lease of 8,559 sf to Children’s
Behavioral Health at Patriot Midtown Park;
a 16,704 sf new lease to the Alabama
1.62% 0.47%
PERCENT PERCENT
Department of Rehabilitation Services at
Lakeshore Crossings; and a 33,900 sf lease
renewal by Portfolio Recovery Associates
at Beacon Ridge Tower. Sales activity
included the acquisition of Beacon Center,
a four-building portfolio totaling 111,545 sf
purchased by an out-of-state investor for
$7,158,000 ($64.17 psf).
This submarket is very well located with
easy access to the I-65 corridor, and the
City of Homewood has expressed interest
in further improvements to the area which
would enhance the economic landscape of
the neighborhood.24 Graham & Co 2020 Office Market Survey | Birmingham, AL
OXMOOR OFFICE BUILDING
801 Tom Martin Drive25
SIGNIFICANT SALES - VULCAN | OXMOOR MARKET
DATE BUILDING SF PRICE PSF BUYER
5/10 500 Beacon Pkwy. W. 29,461 $600,000 $20.37 Jaren Aksut and Robert L. Crook Jr.
9/6 2757 Green Springs Hwy 3,715 $820,000 $220.73 EZ Assets, LLC
529, 601, 631, 651
Beacon Parkway West
9/19 111,545 $7,158,000 $64.17 AK&B Beacon Center, LLC
(Beacon Center - 4
Buildings)
11/8 298 West Valley Avenue 37,000 $860,000 $23.24 Rocky Heights Properties, LLC
85 Bagby Drive
11/22 39,969 $1,965,000 $49.16 Leveragedz, LLC
(University Building)
SIGNIFICANT LEASES - VULCAN | OXMOOR MARKET
BUILDING SF TENANT RENEWAL/LEASE
Beacon Ridge Tower 33,900 Portfolio Recovery Associates Renewal
201 Lakeshore Crossings 16,704 Alabama Department of Rehabilitation Services New
Grand Twin Towers 12,116 Department of Homeland Security Renewal
Memphis Pathology Laboratory dba American
201 Lakeshore Crossings 9,566 New
Esoteric Laboratories
Patriot Midtown Park 8,559 Children's Behavioral Health NewGRAHAM OFFICE SERVICES
28 Graham & Co 2020 Office Market Survey | Birmingham, AL
OFFICE SERVICES
INVESTMENT
DEVELOPMENT BROKERAGE SALES
Graham & Company has a market-leading office platform
with bolstered development capabilities. Graham’s client-
centric philosophy and growth-oriented approach as well
as a shared culture of teamwork, integrity, and service
position it to offer “best-in-class” real estate services.29 DEVELOPMENT/CONSULTING Graham & Company’s development group assembles and works closely with teams of architects, engineers, and contractors to create both build-to suit as well as speculative developments. Graham’s development group also procures financing, negotiates leases, and establishes property management systems for its development projects. Graham has been involved in the development of industrial properties, office buildings, office/service centers, and office building rehabilitation projects throughout the Southeast. BROKERAGE Graham & Company’s brokerage division provides sales and leasing services in five key sectors of commercial real estate: office, industrial, land, retail, and investment. Graham agents consistently rank among the best in their prospective markets. However, it’s not the numbers that reflect the Graham way, it’s the ability to examine each deal through the eyes and sensibilities of its clients that separates Graham from the other industry leaders. INVESTMENT SALES In addition to brokerage and development, Graham & Co offers investment sales services. Our in-house team has the experience and capability to produce quality offering memorandums, actively market assets for sale, source potential investors, and successfully navigate the closing process. Graham has a track record of success in marketing class-A office properties.
30 Graham & Co 2020 Office Market Survey | Birmingham, AL
PROPERTY MANAGEMENT
850 SHADES CREEK PARKWAY
PROPERTY MANAGEMENT & LANDLORD LEASING
In 2020, Graham & Co expanded its office services with the inclusion of seasoned
real estate professionals from Brookmont Realty Group. The addition of this group
will allow Graham to offer a greater scope of services. In addition to Graham’s
focus on first class service to both property owners and tenants, Graham places a
high value on long-term relationships. The foundations of the company were built
upon local and national relationships, and many of those relationships continue
to exist and thrive after more than forty years. While service activities may vary
between different properties, our personnel are trained, and each performance is
measured to ensure delivery of “best-in-class” property management. Graham &
Company currently performs property management and/or leasing services for
more than 14.6 million sf of industrial, office, and retail properties.31
Brookmont Realty joins Graham & Co adding these new faces.
Charles H. Simpson Bo Grisham Edward Nobinger David Walker
Sr Vice President Sr Vice President VP of Property Management Chief Financial Officer
Charles has completed Bo has worked in Edward has been Throughout his 39-
numerous real commercial real estate working in property year career, David has
estate transactions for 36 years, during management since 1980. been involved with the
and developments which time he has He is a certified Real financial management
throughout his 38-year been involved with Property Administrator, and analysis of large
career representing project management, Facilities Management land developments and
landlords, tenants, development, and Administrator, and class-A multi-tenant
buyers and sellers, and tenant and landlord Certified Facility office buildings.
owners and investors of representation for Manager.
commercial real estate. numerous class-A office
buildings.
1849 DATA DRIVE 820 SHADES CREEK PARKWAY
2728 @ SOHO SYNOVUS CENTER32 Graham & Co 2020 Office Market Survey | Birmingham, AL
CORPORATE SERVICES
Brokerage Build-to-Suit Process
Representing clients in the negotiation, Develop custom properties and facilities
structuring, and execution of leases to meet our client’s needs
Construction Management Valuation Services
Consulting, oversight, and project Broker opinions of value, and other
management of various build outs/ financial models to better help you
construction projects make wise and advantageous real estate
decisions33
Facilities Management Strategic Planning
Lease administration, portfolio Developing plans to harmonize strategic
management, site management, etc. business goals with property and facility
decisions
Real Estate Tax Consulting Debt Solutions
Negotiating appropriate tax valuations Leveraging debt relations to negotiate
for existing or new properties optimal terms for new acquisitions or
existing properties
Graham & Company serves corporate and
institutional clients by offering a comprehensive
platform of real estate services across
geographic locations and property types.GRAHAM TRANSACTIONS & AVAILABILITIES
36 Graham & Co 2020 Office Market Survey | Birmingham, AL
GRAHAM TRANSACTIONS
SOLD LEASED LEASED
3070 Green Valley Road 600 University Park Place One Federal Place
9,960 SF OFFICE BUILDING 13,814 SF OFFICE SPACE 15,309 SF OFFICE SPACE
Dan Lovell & Sam Carroll of Jerry Grant of Graham & Co Sam Carroll & Matt Gilchrist of
Graham & Co represented the represented the landlord in Graham & Co represented PNC
purchaser and Sonny Culp & its lease of 13,814 sf to Warren Bank in its lease of 15,309 sf
Matt Rowan, also of Graham, Averett Companies, LLC in this in this class-A office building
represented the seller in class-A Midtown office building. located in the CBD.
the sale of this well located
Cahaba Heights office building.
LEASED SOLD LEASED
Patriot Midtown Park Former Greyhound 107 Frankfurt Circle
8,559 SF OFFICE SPACE 19,978 SF BUILDING 12,470 SF OFFICE SPACE
Dan Lovell & Matt Gilchrist Dan Lovell & Jerry Grant of Walter Brown & Matt
of Graham & Co represented Graham & Co represented Gilchrist of Graham & Co
the Landlord and Jerry Grant, the seller in the disposition represented the landlord in
also of Graham, represented of the former Greyhound its lease renewal of 12,470
Children’s Behavioral Health location to a local developer sf for the General Services
in the lease of 8,559 sf in this for redevelopment of the site Administration in this Vulcan/
class-A office. which could include a mix of Oxmoor office building.
uses including office and retail.37
AVAILABILITIES
Chase Park South Class-A Office Investment Lakeshore Park Plaza
LEASE SALE LEASE
400 Chase Park South, Birmingham, AL 2603 Moody Parkway, Moody AL
2204 Lakeshore Drive, Homewood, AL
Rent Rate: $14.50/SF, Full Service Sale Price: $3,800,000
Rent Rate: $25.50/SF, Full Service
Space: Up to 16,476 SF Available Size: 18,485 SF Size: 3,830 SF
• Exterior facing entrances • 1.5 miles from I-20 • Class-A suburban office building
• Ample parking near front door • Great location on Moody Parkway • Surface parking; leased covered parking
• Well manicured landscaping • NOI $266,165 • Near to lodging, dining and retail
• Cap rate 7%
Contact: Bo Grisham Contacts: Sam Carroll, SIOR Contact: Jerry Grant, CCIM
Matt Gilchrist
Patriot Midtown Park Oxmoor Office Building The Financial Center
LEASE SALE/LEASE LEASE
200 Wildwood Pkwy, Homewood, AL 801 Tom Martin Drive, Birmingham, AL 505 20th Street North, Birmingham, AL
Rent Rate: $21.50/SF, Full Service Rent Rate: $17.50/SF, Full Service Rent Rate: $20.00/SF, Full Service
Space: 92,936 SF Available Sale Price: $11,500,000 Space: 53,152 SF Available
• Walkable, scenic campus Space: 91,061 SF Available • Favorable leasing terms
• State-of-the-art conference facilities • New roof, HVAC systems, & new controls • Exterior building signage opportunities
• Abundant surface parking and deck parking • Well maintained • Access to covered parking deck
• Open floor plan
Contacts: Dan Lovell, SIOR, LEED AP Contacts: Sam Carroll, SIOR Contacts: Sam Carroll, SIOR
Matt Gilchrist Matt Gilchrist Matt Gilchrist38 Graham & Co 2020 Office Market Survey | Birmingham, AL
AVAILABILITIES
Synovus Center International Park The Woodward Building
LEASE LEASE LEASE
800 Shades Creek Parkway, Birmingham, AL 1800 International Park Dr., Birmingham, AL 1927 1st Avenue North, Birmingham, AL
Rent Rate: $27.00/SF, Full Service Rent Rate: $23.50/SF, Full Service Rent Rate: $17.50/SF, Full Service
Space: 554 SF Available Space: 7,628 SF Available Space: 84,435 SF Available
• On-site property management • Walkable, scenic campus • Prominent skyline building signage
• Attached private parking deck • 717 total parking spaces (Shared with available
• Free visitor parking neighboring building) • Attached private parking deck
• Parking ratio: 3.4 per 1,000 SF • Free visitor parking
Contact: Charles H. Simpson Contacts: Sam Carroll, SIOR Contacts: Sam Carroll, SIOR
Matt Gilchrist Matt Gilchrist
Vestavia Corporate Office Medical Office Building Grandview II
SALE LEASE LEASE
100 Vestavia Parkway, Vestavia Hills, AL 3570 Grandview Parkway, Birmingham, AL 3595 Grandview Parkway, Birmingham, AL
Sale Price: $3,400,000 Rent Rate: $29.50/SF, Net of Janitorial Rent Rate: $23.00/SF, Full Service
Space: 29,322 SF (3) Three Floors Space: 3,769 SF Available Space: 37,377 SF Available
• City of Vestavia Hills – Best Suburbs in • Brick & sandstone with limestone accents • Class-A suburban office building
America by Business Insider • Covered drop-off drive • Free surface parking
• Attractive exterior - easy upkeep • Two-story atrium lobby with 28’ ceiling • Easy access to major transportation
• Free surface parking – 4.4/1,000 SF arteries
Contact: Dan Lovell, SIOR, LEED AP Contact: Walter Brown, SIOR Contacs: Sam Carroll, SIOR
Matt Gilchrist39
AVAILABILITIES
2728 @ SoHo Century Park Patchwork Farms
LEASE LEASE SALE
2728 19th Place South, Homewood, AL 500 Century Park South, Birmingham, AL Healthy Way, Birmingham, AL
Rent Rate: $26.50/SF, Full Service Rent Rate: $14.50/SF, Full Service Call for Pricing
Space: 21,475 SF Available Space: Up to 18,890 SF Available Space: 1.02 Acres Available
• Easy access to Highway 31 and Red • Exterior entrances • Office, retail, or residential development
Mountain Expressway • Ample parking near front door • 11,000 Vehicles per day on Cahaba River
• Highly desirable Midtown submarket • Fee incentives Road
• City of Homewood - no occupational • Average income more than $117,000
taxes annually within 5-mile radius
Contact: Charles H. Simpson Contact: Bo Grisham Contact: Jerry Grant, CCIM
Lakeshore Center The Chambers Building 500 Mtn Bk Office Park
SALE/LEASE SALE/LEASE SALE
800 Lakeshore Parkway, Birmingham, AL 100 Centerview Drive, Vestavia Hills, AL 500 Office Park Drive, Birmingham, AL
Rent Rate: $12.50/SF, Full Service Rent Rate: $17.25/SF, Full Service Call For Pricing
Sale Price: $3,795,000 Sale Price: $3,400,000 Space: 62,535 SF
Space: 120,000 SF Available Space: 10,230 SF Available; Total 34,313 SF • New building conference room
• Parking - 5.5 to 1,000 • Easy access to Highway 31, I-65 and I-459 • Remodeled restrooms
• Zoning - I-3 Industrial Park • Zoning: O-I (Office Park District), Vestavia Hills • Free ample surface parking
• City of Birmingham Water & Sewer - • Located within Highpoint Office Center • Excellent mix of corporate tenants
Birmingham Water Works
Contacts: Walter Brown, SIOR Contacts: Walter Brown, SIOR Contacts: Dan Lovell, SIOR, LEED AP
Ogden Deaton, SIOR Matt Gilchrist Jerry Grant, CCIMABOUT GRAHAM & CO
42 Graham & Co 2020 Office Market Survey | Birmingham, AL
GRAHAM & CO – BIRMINGHAM
Theresa Baker Don Beaugez Jack Brown, SIOR Walter Brown, SIOR Sam Carroll IV, sior Tanya Clark John Coleman, sior
Sonny Culp, sior Ogden Deaton, sior Courtney DeShazo Joel Dorning Matt Gilchrist Henry Graham Matthew Graham
Mike Graham, cpm, sior Steve Graham, mai, cre Jerry Grant, ccim Bo Grisham Lauren Limbaugh Dan Lovell, sior, leed ap Thomas Michael
Christie Neely Edward Nobinger, Joelle Rodgers Matt Rowan Hayden Scott, mai Charles H. Simpson Jordan Tubb, sior
pa , fma , cfm
David Walker Tana Welch Leslie Williamson43
ABO UT G R AHAM & CO M PAN Y
Founded in 1978, Graham & Co is a full-service commercial real estate firm based in Birmingham, with offices in Birmingham and
Huntsville, Alabama and the Gulf Coast, Florida. The company offers professional services including sales, leasing, property management,
corporate services, consulting, investment, and development. In response to client demand, Graham has systematically extended its
range of services and geographic reach, now serving clients throughout Alabama and several surrounding states.
C O M M U N I T Y I N V O LV E M E N T
At Graham & Co we recognize that our clients can enhance the value of their property, business, and/or investment if the community
in which they live, and work is vibrant and healthy. Graham and its employees continue to give back to the community in a number of
ways including volunteering time and energy in support of a variety of community and social causes.
A F F I L I AT I O N S
NAIOP–National Association for Industrial and Office Parks
SIOR–Society of Industrial & Office Realtors IREM–Institute of Real Estate Management
CCIM–Certified Commercial Investment Member LEED–Leadership in Energy and Environmental Design
CRE–Counselors of Real Estate ULI–Urban Land Institute
G R AHAM & CO M PAN Y P E RSO N N E L (B I R M I N G HAM)
PRINCIPALS DEVELOPMENT PROPERTY MANAGEMENT
Mike Graham, CPM, SIOR Henry Graham II Theresa Baker
Steve Graham, MAI, CRE Don Beaugez
OFFICE GROUP Thomas Michael
INDUSTRIAL GROUP Walter Brown, SIOR Edward Nobinger, PA, FMA, CFM
Jack Brown, SIOR Sam Carroll IV, SIOR Leslie Williamson
John Coleman, SIOR Bo Grisham
HUNTSVILLE OFFICE
Sonny Culp, SIOR Jerry Grant, CCIM
Tyler Fanning, SIOR
Ogden Deaton, SIOR Matt Gilchrist
Erika Harless
Courtney DeShazo Lauren Limbaugh
Jeremy Pope, CCIM, SIOR
Joelle Rogers Dan Lovell, SIOR, LEED AP
Bart Smith, CCIM, SIOR
Jordan Tubb, SIOR Charles H. Simpson
George Twitty, Jr.
INVESTMENT CLIENT SERVICES MANAGER GULF COAST OFFICE
Matthew Graham Christie Neely Jason Carnes
Kevin Williams, CCIM
MARKET RESEARCH ANALYST CORPORATE SERVICES
Matt Rowan Hayden Scott, MAI
Tanya Clark
FINANCE
GRAPHIC DESIGN
David Walker, CFO
Joel Dorning
Tana Welch
INDIVIDUAL
MEMBERSHIPS2020 OFFICE MARKET SURVEY GRAHAM & CO 1801 Fifth Avenue North Suite 300 Birmingham, AL 35203 205-871-7100 www.GrahamCompany.com
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