Birmingham, AL Office Overview
The Birmingham city proper includes the Arlington - West End, Five Points South, and Old Mountain Brook commercial real estate submarkets. With a metropolitan population of over 1.1 million people, Birmingham has transformed itself from a steel town into one of the most important business and financial centers in the Southeastern United States. A diverse mix of business and industry sectors are attracted to the region, creating consistent demand for white collar office employment and Class A office space in Birmingham.
As of mid-2017, the Greater Birmingham office market encompasses over 21 million square feet of existing office space in properties larger than 50,000 square feet. The Birmingham metro area is home to about 25% of the entire population of Alabama, creating a vigorous growth in the Birmingham commercial real estate market.
Birmingham, AL Office Inventory Description
While industry and manufacturing still play a role in the economy of Birmingham, over the past 50 years the city has successfully diversified its business base with the banking, telecommunications, healthcare, insurance, and financial employment sectors. With a gross metropolitan product of over $56 billion annually, the demand for white collar office space continues to grow. Nearly 63% of the office space in Birmingham is Class A or A+, with Class B office space in Birmingham adding another 32% to the total available inventory.
The Birmingham Central City office submarket is home to a mix of both modern and historical office properties. Located west of State Route 280 between I-20 and State Route 11, this area is home to office buildings such as The Plaza on 20th Street North, Wells Fargo Tower, and the renovated Brown Marx Building.
Birmingham, AL Commercial Inventory Breakdown
Total: 28,103,920 SF
By square footage range:
- 50k to 100k SF: 5,357,501 SF / 19.06% of total office
- 100k to 500k SF: 17,833,749 SF / 63.46% of total office
- 500k to 1M SF: 3,528,166 SF / 12.55% of total office
- > 1M SF: 1,384,504 SF / 4.93% of total office
- Class A: 16,155,826 SF / 57.49% of total office
- Class B: 9,435,660 SF / 33.57% of total office
- Class C: 2,412,434 SF / 8.58% of total office
Birmingham, AL Green Office Space
In 2017, the National Green Building Adoption Index surveyed the top 30 office markets in the U.S. The report noted that since 2005, the national percentage of energy efficient, green office space has increased from less than 5% to about 38% today.
While Birmingham isn't in the 30 office markets that were surveyed for the index, there is some pretty impressive green office space here. A great example of a LEED-certified Birmingham office building is the Chase Corporate Center in the nearby Hoover, AL commercial real estate submarket. This Class A office building was built in 1985 and includes 211,000 square feet of space. Located in the Chase Lake neighborhood, Chase Corporate Center is the proud recipient of a LEED Silver certification.
Birmingham, AL’s Top Office-Using Sectors
While the manufacturing sector still helps to drive the demand for commercial real estate in Birmingham AL, the education, financial, and corporate head office sectors are also some of the top office-using sectors in Birmingham, Alabama.
- Education – Highly trained white-collar office workers come to the Birmingham job market from institutions such as the University of Alabama, Samford University, Cumberland School of Law, and the Miles Law School.
- Manufacturing – American Case Iron Pipe Company, CMC Steel, U.S. Steel, Nucor, and Vulcan Materials Company are some of the largest steel and materials mills in the country.
- Finance – As a hub for business and finance in the Southeastern U.S., demand for white collar Class A office space in Birmingham comes from firms such as Regions Financial Corporation, BBVA Compass, and Wells Fargo Bank.
- Corporate Offices – White collar office employment is driven by the diverse mix of corporate head offices in Birmingham, including Blue Cross and Blue Shield of Alabama, ProAssurance, Liberty National, O'Neal Industries, Drummond Co., and Brasfield & Corrie, LLC.
- Total Population212,265
- Male Population(47.3 %) 100,454
- Female Population(52.7 %) 111,811
- Median Age35.70
- Average Household Income$48,614
- Median Household Income$33,770
- Median Income Under 25$18,757
- Median Income 25-44$35,515
- Median Income 45-64$37,016
- Median Income Over 65$31,392
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