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Office Development The hallmark of the Birmingham office market is that supply maintains pace with demand. The market consists of more than 16 million square feet of single and multi-tenant office space, 9 million square feet of multi-tenant industrial space and 18 million square feet of retail space. Since 1992, the regional office market has grown by more than 2.5 million square feet. In the City Center, the 150,000 square feet, eleven-story Concord Center is the first multi-tenant Class A office tower to be constructed in over a decade. At the site of the old Federal Reserve Building, the 310,000 square foot One Federal Place is rising to meet the demands of a growing economy. Sloss Real Estate Group and Barry Real Estate Companies of Atlanta are developing the project, which includes the restoration and renovation of the old Federal Reserve Building. Also downtown, Energen completed its $25 million seven-story, 130,000 square foot headquarters in 1999 and the historic John Hand Building was redeveloped into seven floors of commercial office space, and twelve floors of upscale loft apartments and condominiums. According to the Wilhelm Report, the area's overall multi-tenant occupancy rate has increased to 90.6%. Occupancy stands at 91.5% in first class buildings, and dozens of newer suburban and downtown building report 100% occupancy. Rental rates range from $5.50 to $23.50/sq. ft. area wide, with first class office space renting from $13.50 to $23.50/sq. ft. |