Vacancy for Huntsville’s industrial market continued to decline in 2017 and marks the 7th consecutive year of decreased availability. The overall vacancy rate now stands at 6.40% compared to 6.86% in 2016. The largest block of space available is the 660,000 former Navistar plan in the Jetplex Market.
Overall market rates
Single tenant – 5%
Multi-tenant – 12%
The Huntsville market experienced positive absorption again in 2017 for the 5th year in a row. Over 2.3 million square feet have been absorbed in the market since 2012. Activity was strong across all three markets and is predicted to remain healthy in 2018. The overall vacancy rate per area is as follows:
Jetplex – 9.27%
Central/North Huntsville – 5.34%
Chase – 0%
Industrial building supply is not keeping pace with the healthy demand from supply-chain and distribution users, creating rent increases across most of the nation. Rents for industrial space have begun to increase locally and are forecasted to increase again in 2018.
Three announcements in 2017 will have a positive impact on Huntsville’s industrial market for many years in the future:
- BOCAR announced plans to build a $15 million plant in Huntsville/Limestone County that will employ over 300 people.
- Blue Origin will build a 400,000 square foot plant in Cummings Research Park that will be used to construct rocket engines.
- Aerojet Rocketdyne announced to build a 135,000 square foot building in North Huntsville. The company is looking to add 70 jobs to the Huntsville market.