Suburban Office Space In Short Supply for Baldwin County
I recently attended a commercial real estate conference held in Birmingham, Alabama, where over 500 commercial brokers, developers, lenders, politicians, and business leaders gathered to learn of current trends in commercial real estate, as well as to gain a better understanding of how certain factors have and will continue to shape the future of Alabama. Prevalent themes centered on the rapid growth of the Gulf South region and the evolution of our industry—with progressive growth and opportunities on the horizon for the South Alabama market, notably, changes in the office market space.
Baldwin County continues to be the fastest growing county in Alabama with 49% population growth since 2000. The University of Alabama’s Center for Business and Economic Research (CBER), projects that the Daphne-Fairhope-Foley metro population will increase 43.6% over the next 20 years, and is anticipated to become the 4th largest MSA in the state by 2040. The recent arrival of the Walmart distribution center and Amazon fulfillment center, combined with the expected growth of companies such as Airbus and Austal, the continued success of the Port of Mobile, and the addition of the new bridge over Mobile Bay all point towards a bright future for the South Alabama region.
But as the population continues to increase throughout Baldwin County and new businesses are attracted to the region, the nonexistence of Class A office space outside of Mobile’s CBD is evident. The product simply doesn’t exist. The lack of available inventory can indeed be frustrating—not only to national commercial brokers seeking office space options for clients but to local economic developers tasked with recruiting industry and commerce to the area.
According to Lee Lawson, President and CEO of Baldwin County Economic Development Alliance, “The lack of available professional office product in Baldwin County is a critical difference maker in converting economic development opportunities to successes. We continue to work with our partners both private and public to create the environment where economic development opportunity conversions can happen successfully. In the white-collar office arena, existing space in the marketplace creates a higher conversion opportunity ratio for new high-paying jobs in our community.”
Even more challenging would be to locate a Class A office building that meets the preferences of today’s changing workforce. There are certainly niche markets, such as Downtown Fairhope, that are starting to support a higher-end office product but on a smaller scale. Other options for office space along the Eastern Shore of Mobile Bay, including Spanish Fort, Daphne, Fairhope, and Point Clear are primarily made up of smaller, older buildings, some of which are becoming antiquated. Office space needs for those users not willing to commute to broader markets such as Mobile or Pensacola are often met by converting retail space to office use or working from a home office.
On pace with national trends, office building features are evolving, with an emphasis on more open space for collaboration and shared-office facilities in high-tech buildings. Suburban locations with urban-type amenities are highly favored among the substantial millennial demographic shift and will create even more demand in the next few years as the age group continues to mature. Another popular suburban office trend is the mixed-use, live-work-play development model with walkability to nearby restaurants, retailers, and residential services.
To expound upon the shifting trends of suburban office space and the lack of Class A inventory in the area, Stirling Properties has recognized a significant need to provide for quality office space. We are currently underway on pre-leasing efforts for The Offices at Spanish Fort Town Center, a proposed 2-story, 44,000-square-foot, Class A office building strategically positioned along the I-10 corridor in Spanish Fort. This future development is in the bullseye of major growth in the county and provides convenient access to both Mobile and Pensacola. Not only will this new office building help to attract corporate and professional users to the area, but the new construction and design also allow the incorporation of the emerging styles that will change the way office space is utilized.
The Offices at Spanish Fort Town Center will include state-of-the-art construction such as efficient floor configurations, allowing tenants the ability to design space to incorporate innovative ways to potentially reduce square footage required, therefore, reducing rental expenses. Other features include flex space to encourage and promote collaboration among employees; flexibility in hours of operation, as the trend for 24/7 “shift” use evolves; and ample, free surface parking, resulting in significant cost savings when compared to paid parking typically associated with CBDs. It will also benefit from high interstate visibility and signage opportunities.
The office building is within walking distance of numerous on-site amenities associated with Spanish Fort Town Center, a mixed-use development consisting of retail, restaurants, and residential facilities. An on-site Container Park is also planned for 2018, with exciting new restaurant vendors.
Our region is quickly emerging as a top destination for business and corporate growth and relocation. Baldwin County has been named #1 in the state of Alabama for incoming business investment for the 2nd year in a row, and #1 in the state for Workforce Talent Attraction. If we are going to compete with other top markets—and win—we must be able to provide quality office space in our suburban markets.
Stirling Properties is excited to embrace and support the growth of Baldwin County and our region. With offices spanning the Gulf South, our team is well-equipped to recognize and execute strategic commercial real estate opportunities—from Louisiana to the Florida Panhandle.
For additional information, please contact me at 251.375-2496 or jbarnes@stirlingprop.com.
Mobile area primed for future growth
Mobile Aeroplex at Brookley establishes surrounding area as prime position for sustained growth in the commercial real estate industry.
Mobile, Alabama, and its surrounding region are experiencing unprecedented growth due to a low cost of doing business, diverse commerce base, intermodal transportation options, and quality lifestyle. Businesses and corporations are flocking to the area, bringing with them an increased workforce and a plethora of new economic opportunities.
One specific area of note is the positive trend in the market surrounding Brookley field. Economic activity is thriving in this area, and an influx of significant commercial real estate development is expected within the next few years. With the advent of numerous new businesses and the resulting inflow of employees and their families, this is a natural site for the emergence of convenience stores, gas stations, hotels, restaurants, and much more in the near future.
Most of the area growth is spearheaded by the recent expansion of Mobile Aeroplex at Brookley. Spread over 1,650 acres in southwest Mobile, the Aeroplex is now the largest industrial and transportation complex in the region, combining rail, road, and water along with a state-of-the-art airport. Currently, more than 75 companies employing some 3,600 people are housed in the complex, including Airbus U.S. Manufacturing Facility, Airbus Engineering, FedEx, Signature Air Support, Safran USA, Continental Motors, VT MAE, MAAS Aviation, among many others—and it’s growing daily.
Late last year, Airbus announced its largest single deal to build aircraft for Indigo Partners, whose airline portfolio includes Frontier, JetSMART, Volaris, and Wizz Air. The contract includes 430 aircraft and is valued at $49.5 billion. Airbus was also selected by Delta Air Lines to manufacture as many as 200 jetliners, with delivery of the first 100 beginning in 2020.
Airbus and Bombardier also announced an agreement to form a partnership to build Bombardier’s C Series passenger jets. This deal could result in the addition of a second aircraft assembly line at Mobile Aeroplex, creating a proposed 400 to 500 more direct jobs in the area, and would represent an investment of hundreds of millions of dollars. Reports also estimate that establishing “the necessary C Series facilities” would create 1,900 direct jobs, 1,000 indirect jobs, and 3,000 induced jobs during construction.
In December, the Mobile County Commission approved its share of incentive packages for Safran USA and Continental Motors. This process will move forward plans for Safran—a new tenant at Brookley—to open a new manufacturing operation. The company plans to invest $1 million in starting the operation and will hire approximately 20 employees. Continental Motors is planning a $60 million investment to build an entirely new facility to house its existing operations at the Aeroplex.
Furthermore, this thriving industrial park has the potential of becoming Mobile’s new international airport—a proposal to move Mobile Regional Airport from west Mobile to Brookley field is gaining steam. This move would completely change the landscape of the area by placing the airport at the center of our region’s economic activity. With the recent support of Congressman Bradley Byrne and many other local community leaders, a feasibility study could be underway soon. “If we undergo a feasibility study and the study shows that Brookley is a viable airport for commercial activity, then there is no reason why we should not entertain that,” said Chris Curry, Executive Director of the Mobile Airport Authority, which oversees the Mobile Downtown Airport, Mobile Regional, and the Aeroplex at Brookley Field.
The Mobile Aeroplex at Brookley is already home to many of the world’s leading aerospace suppliers, and major transportation companies, and it continues to expand every day. It is serving as a major catalyst for surrounding area growth and investment in the region. But people living and working here currently have limited options for eating, shopping, and other needed services. Because of this, we will undoubtedly see an increase in the demand for commercial amenities and new developments such as retail and restaurants.
The time is right for commercial growth in the area surrounding Mobile Aeroplex at Brookley. Anyone with interest in getting in on the front end of a burgeoning market should pay close attention to this space. The growth is starting small, but it will certainly progress quickly over the next few years. I look forward to being a part of the historical evolution of Mobile!
Stirling Properties Is Pre-Leasing Offices At Spanish Fort Town Center
Stirling Properties commercial real estate company is pre-leasing Offices at Spanish Fort Town Center, a proposed Class-A office building to be located within the Spanish Fort Town Center mixed-use development in Spanish Fort, Alabama. The offices will be situated along Bass Pro Drive on the east side of the center.
The proposed Offices at Spanish Fort Town Center includes the construction of a 2-story office building consisting of roughly 44,000 square feet. The building will feature state-of-the-art construction, efficient floor configurations, and ample surface parking. Adjacent land is available for additional office development phases to meet expansion requirements and demand.
Stirling Properties currently handles leasing for Spanish Fort Town Center. The proposed office development would be owned and managed by the company. Since opening its Mobile office in 2014, Stirling Properties remains committed to expanding its footprint in South Alabama and the surrounding region.
“The Offices at Spanish Fort Town Center will be a great addition to the area. It will be located within walking distance of abundant amenities that already exist as part of the overall Spanish Fort Town Center mixed-use development. This is a great example of the live, work, play development model that is becoming attractive to many companies and employees,” said Jeff Barnes, CCIM, Broker with Stirling Properties.
Spanish Fort Town Center, anchored by Bass Pro Shops, Kohl’s, JCPenney, Urban Air, Fairfield Inn, and Courtyard by Marriot, is a 230-acre premier master-planned development located at the intersection of Interstate 10 and U.S. Highway 98 in Baldwin County. The center includes 450,000 square feet of retail and restaurant space, an apartment community, hotels, banks, and entertainment options.
Stirling Properties has a diverse portfolio of retail, office, mixed-use, healthcare, and hospitality developments and managed properties across the Gulf South region. The company recently developed a similar office product—Offices at River Chase—in the River Chase mixed-use center located in Covington, Louisiana.
For Offices at Spanish Fort Town Center leasing information, contact Jeff Barnes, CCIM, at (251) 375-2496 / jbarnes@stirlingprop.com or Angie McArthur at (251) 375-2481 / amcarthur@stirlingprop.com.
Stirling Properties is located at One St. Louis Centre, 1 St. Louis Street, Suite 4100 in Mobile, Alabama.
2017 Office Market Survey: Mobile CBD & West Mobile, AL
Stirling Properties is pleased to present the 2017 year-end Mobile Office Market Survey. This report, compiled by Jack Conger and Jill Meeks, Sales & Leasing Executives in our Mobile office, is intended to track average rental rates, occupancy rates, and average absorption rates for West Mobile and the downtown Central Business District (CBD) on office buildings greater than 20,000 square feet. It was created to be a resource for agents, as well as tenants, landlords, developers, lenders, fellow brokers and anyone else looking for information about the Mobile office market.
All information provided in this report would not be possible without the cooperation of our staff and colleagues and we would like to thank all of those who contributed.
Here’s an excerpt from the Mobile Office Market Survey:
The last two quarters of 2017 saw an increase in investment activity in the area with many notable transactions, redevelopments and sales.
In leasing news, Armbrecht Jackson, LLP has subleased a portion of the Regions Bank space at RSA Battle House Tower and will be vacating the top two floors of Riverview Plaza. The CBD occupancy rates had a slight increase from 68.3% to 70.2%, average rental rate of $17.28, and an absorption rate of .25%.
There were also many exciting economic announcements for Mobile, such as the partnership of Airbus and Bombardier that could bring a second aircraft assembly line to the market, and the decision of steelmaker SSAB Americas to move the headquarters of its American division from Chicago to Mobile. Rest assured, there are more to follow in the coming months and years!
Please click here to view and download the PDF of the Mobile Office Market Survey.
Team Stirling Properties Spreads Holiday Cheer!
In the spirit of the Holiday Season, Stirling Properties participated in the Volunteers of America Christmas Wish “Angel” Project. For the 6th consecutive year, our company donated Christmas gifts, food baskets and other essential items to local families in need across our Gulf South region.
The annual Christmas Wish Project helps bring joy and holiday cheer to families and individuals who might not have a Christmas this year. Through Volunteers of America, participating families submit “wish list” gift items for each individual. The wishes are noted on angels and hung on the company Christmas tree where Stirling Properties and employees can select and grant them. This year, we were able to fulfill every single wish! In all, 18 families and more than 46 children, adults and seniors received Christmas gifts. Additionally, 10 families on the Northshore received food baskets with tasty treats and supplies for the holiday season.
Stirling Properties’ Stewardship Committee organized the company-wide event by partnering with Volunteers of America in Greater New Orleans, Greater Baton Rouge and the Southeast to serve the New Orleans Northshore and Southshore, Baton Rouge, Lafayette, Mobile and Shreveport communities.
In addition to donating to the Christmas Wish Project, Stirling Properties hosted its third annual Northpark Christmas Bazaar, Bake Sale & Raffle on Friday, November 17th. Local vendors, as well as employees of the Northpark office complex sold crafts, jewelry, ornaments, artwork, beauty products and many other great gift items.
The Christmas Bazaar raised $2,500, which was also donated in full to Volunteers of America to assist more families in our area with emergency holiday needs.
The Holiday Season is a time for gratitude, generosity and giving back to our region. Stirling Properties is committed to supporting the communities where we live and work, and we will continue to support local nonprofits, community groups and charitable organizations throughout the year and beyond.
Thank you to all of the vendors, donors and shoppers who made this project a huge success. On behalf or Stirling Properties, we wish you and yours a joyous Holiday Season and a Happy New Year!
For more information about Stirling’s Stewardship Committee, please visit stirlingprop.com/about/community-involvement or contact us by email at stewardship@stirlingprop.com.
Red or White Wine & Gourmet Center coming to The Wharf in Orange Beach, Alabama
Stirling Properties commercial real estate company is pleased to announce that Red or White Wine & Gourmet Center is coming to The Wharf, located in Orange Beach, Alabama. Jeff Barnes, CCIM, Stirling Properties’ Broker, handled the lease transaction.
Red or White Wine and Gourmet Center will occupy 2,852 square feet of water-front space on the Ground Floor of Levin’s Bend, Suite D-128 at The Wharf, and plans to open in October of 2017. This will be the third location for Red or White in the coastal Alabama region, with existing sites in Mobile and Fairhope. The locally owned company features a wide variety of globally sourced retail wine selections, as well as a wine and tapas bar with an original menu and unique environment.
Positioned on 222 acres along the south side of the Intracoastal Waterway in Orange Beach, Alabama, The Wharf is one of the most dynamic and inviting mixed-use destinations along the Gulf Coast. Consisting of more than 376,000 square feet of commercial lease space, the current mix of tenants includes retail shopping and restaurant options, office and professional services, a 15-screen movie theater, a 112′ Ferris wheel, residential condominiums, convention space, meeting facilities, a 208-slip marina, a 132-room Springhill Suites by Marriott, and Burris Farm Market. Future plans include the development of prominent outparcels, including an exciting new zip line course scheduled to open in the fall of 2017.
For leasing information, contact Jeff Barnes, CCIM, at (251) 375-2496 or jbarnes@stirlingprop.com.
