There isn't a lot of demand currently in Birmingham, Alabama's office sector. The full year 2024 left 300,000 square feet of negative absorption on the market, with -48,121 square feet of that added in the final three months, a report from Colliers finds. In contrast, the category ended the fourth quarter of 2023 with positive net absorption of 175,308 square feet.
Vacancies ended the year elevated at 20.69 percent compared to 18.84 at the end of 2023. That's above not only the 10-year city average but above the national office median of 13.9 percent. Colliers said the struggles came as companies continue to adapt to hybrid work.
To make matters worse, construction has gone up to 181,000 units during the fourth quarter, up from 100,000 from the same period a year ago.
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