Huntsville named among ’10 Emerging Industrial Markets’ in new study

Collier’s International recently compiled a list of “10 Emerging Industrial Markets to Watch,” and Huntsville was included among the likes of Norfolk, Virginia, Albuquerque, New Mexico and Omaha, Nebraska, among others.

Huntsville’s inclusion on the list is based largely on its high inventory of industrial space and the demand for that space keeping pace with the inventory.

Here’s more:

Collier’s International’s 10 Emerging Industrial Markets to Watch

With Cummings Research Park being the second largest research park in the country, and the recently announced relocation of Space Command headquarters to the Rocket City, Huntsville naturally fits into this list, which includes:

• Albuquerque, New Mexico
• Boise, Idaho
• Dayton, Ohio
• El Paso, Texas
• Huntsville, Alabama
• New Hampshire markets
• Norfolk, Virginia
• Omaha, Nebraska
• Savannah, Georgia
• Treasure Coast, Florida

The study shows that Huntsville’s industrial market has grown by 26% over the past five years. During that time, new supply has pushed industrial space vacancy up to 10.9%, an increase of 333 basis points.

According to Colliers, most of the vacant space is in recently completed speculative buildings, and fewer options exist for tenants needing “functional second-generation space.”

In essence, demand has largely kept up with new supply — net absorption totaled 7.7 million square feet over the past five years. Although the Huntsville market experienced a dip in inquiries during the first half of 2024, interest has surged since then. Colliers believes this will lead to an uptick in demand over the coming quarters.

Here’s a snapshot Huntsville’s industrial market numbers:

Read the full Colliers International report HERE.

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