Distribution

Distribution continues to be one of the regional economy's major growth sectors, and Birmingham continues to be an attractive hub and headquarters site for distribution-intensive businesses.

According to an industrial market study by Birmingham's Graham & Company, Inc., the multi-tenant warehouse market absorbed 505,000 square feet of space during 1998 and 119,000 in 1999. Office/warehouse absorbed 155,000 feet in 1998 and 6,000 in 1999.

In 2000, there are 10.4 million square feet of multi-tenant warehouse, distribution and service center space in the area. Occupancy rates stand at 94.6% for multi-tenant warehouse, 96.7% for bulk distribution, 89.7% for office/warehouse, and 94.1% for service centers. New facilities are being constructed, but the market continues to be tight for good locations, driving up rents.