Most of the Birmingham submarkets experienced growth in the multi-tenant industrial sector during the second quarter.

According to Cushman & Wakefield EGS Commercial Real Estate, the Birmingham metro had an overall leasing gain of 79,992 square feet during the second quarter, lowering the vacancy rate from 11.6 percent in the first quarter to 11.1 percent mid-year.

“Overall, Birmingham’s industrial market experienced steady growth during the second quarter of 2015,” EGS said in it’s 2015 Mid-Year report. “As the year progresses and economic activity surrounding Alabama’s automotive and aerospace industries continues to increase on a statewide level, vacancy levels are expected to tighten across the industrial market.”

Kamtek is one of the companies to announce a major expansion in Birmingham during the second quarter. (Michael Tomberlin/Alabama NewsCenter)

Birmingham has had two significant industrial announcements in the past few months, including Kamtek’s $580 million expansion at the Valley East industrial park, which will add 300 new jobs, and Publix has announced a new distribution center in McCalla that will bring 200 jobs to Jefferson County.

Birmingham’s industrial sector had a positive gain of 48,129 square feet of leased industrial space in the Central submarket, compared to 1,925 square feet of net vacancy just one quarter prior. Structural Steel Product leased 52,360 square feet at the Birmingham Food Terminal & Distribution Center, which aided in dropping the overall vacancy in the submarket from 17.2 percent to 16 percent.

The Southwestern submarket had 67,800 square feet of positive absorption, while the Eastern submarket and Oxmoor Valley saw modest gains as well.

The Southern market was the only one with net vacancy during the quarter, losing 52,307 square feet.

As of right now, the market is setting up to perhaps see some new product in the form of build-to-suit over the next 12 months.

“As the availability of quality space continues to diminish, the market may see and increase in build-to-suit activity as there is no new speculative construction planned in the near future,” EGS said.

Bryan Davis is the research/media coordinator for the Alabama Center for Real Estate housed within the Culverhouse College of Commerce at the University of Alabama. He can be reached at 205-348-5416 or at bkdavis@culverhouse.ua.edu. The Alabama Center for Real Estate‘s core purpose is to advance the real estate industry in Alabama by providing relevant resources in the areas of research, education and outreach.