Birmingham commercial real estate suffered dismal year
Published: Tuesday, February 22, 2011, 8:30 AM
By Michael Tomberlin -- The Birmingham News
Commercial real estate in Birmingham suffered through one of its worst years on record in 2010, with all three major categories -- office, industrial and retail -- failing to crack the 90 percent occupancy mark at year's end, a report shows.
EGS Commercial Real Estate Inc. shared the findings of its year-end report with The Birmingham News before sending it to clients and subscribers. The report is closely watched in commercial real estate circles.
EGS says the Birmingham area's office market stood at 89.9 percent occupancy at year's end, a slight downtick from the previous year.
The retail segment's occupancy rate of 87.6 percent was off the 88 percent mark it ended at in 2009.
The segment suffering the most in 2010 was industrial space, which registered a third straight year of significant occupancy declines. It finished the year with a 78.9 percent occupancy rate.
"I've been doing this for 25 years and I've never seen occupancy below 80 percent," said Mark Byers, executive vice president at EGS and head of the company's industrial real estate division.