Birmingham Office Rent Price & Sales Report

2023 Office Space Rent & Sales

  • $21.76 2023 Avg. Asking Rent
  • 1.22% Y-o-Y Avg. Asking Rent Change
  • 16.73% 2023 Office Vacancy Rate
  • $66.6M2023 Total Office Sales
  • $114.52Avg. Sale Price/SF

Birmingham office price per square foot in 2023 was $21.76 on average. This marked a +1.22% change in office space price per square foot compared to the previous year. The local office market recorded an average vacancy rate of 16.73% across all asset classes combined. The 4 transactions that closed here throughout 2023 amounted to a total sale volume of $66.6M. Birmingham office space commanded an average sale price per square foot of $114.52.

See how this market compares to the national average: U.S. office space rent & sales.

Average Rent by Office Class

2023 Average Office Rent per Square Foot

  • Birmingham Class A & A+ Office Space$22.38
  • Birmingham Class B Office Space$20.98
  • Birmingham Class C Office Space$20.81
  • Alabama Class A & A+ Office Space$23.54
  • Alabama Class B Office Space$19.92
  • Alabama Class C Office Space$21.24

Birmingham, AL Office Asking Rents by Class

Average office rent in Birmingham rested at $21.76 per square foot in 2023. As would be expected, office rent price showed some variation from one asset class to another. As such, the asking rent for class A office space in Birmingham averaged $22.38 per square foot. Across all submarkets, class B office space recorded an average asking rent of $20.98 per square foot. Meanwhile, assets encompassing class C office space saw asking rents of $20.81 per square foot, on average. Comparably, statewide Alabama average office rents by class in 2023 were: $23.54 per square foot for class A office space; $19.92 per square foot for class B office space; $21.24 per square foot for class C office space.

2023 Office Vacancy Rates in Birmingham

Submarket Asking Rents Vacancy Rates
Birmingham - University $29.06 7.42%
Homewood - East $25.57 5.60%
Mountain Brook $23.87 5.71%
Birmingham - Southside $23.01 9.91%
Vestavia Hills $22.53 13.28%
Birmingham - Downtown $20.91 19.25%
Highway 280 Corridor $20.83 21.64%
Hoover $20.73 19.96%
Lakeshore $19.03 35.42%
Homewood - West $14.28 3.47%
Data provided by Commercial Edge
Submarket differences in factors such as property mix, degree of accessibility, and availability of amenities influence not only variation in office rent price, but also in vacancy rates. The overall office vacancy rate on the Birmingham market was 16.73% in 2023. Looking at the market stats on a more granular level, data shows that the lowest office vacancy rate in Birmingham was 3.47% in the Homewood - West submarket, while the highest office vacancy in the market was 35.42%, recorded in Lakeshore.

Office Spaces for Rent in Alabama

Birmingham Office Sale Price per SF

  • $114.522023 Avg. Price per SF
  • -41.05%Y-o-Y Avg. PpSF Change
  • $66.6M2023 Office Sales Volume
  • 42023 Number of Transactions

Birmingham, AL Sale Price per SF Trend

  • Birmingham Avg. Sale Price per SF in 2023$114.52
  • Alabama Avg. Sale Price per SF in 2023$92.64
Birmingham office space cost in 2023 marked a -41.05% change compared to the previous year. The sale price for office space in Birmingham averaged $114.52 per square foot in 2023, across all market subdivisions and asset classes. Conversely, the statewide Alabama average office sale price during the same time period was $92.64 per square foot.

2023 Office Sales Volume

  • Birmingham, AL Total Office Sales Volume in 2023 $66.6M
  • Birmingham, AL Total Number of Office Sales Closed in 2023 4
A total of 4 deals closed on the Birmingham office market in 2023, adding up to a yearly sales volume of $66.6M. Notably, the largest transaction on the market saw 3980 Colonnade Pkwy change hands for $28,000,000 on 6/2/2023.
Data provided by Commercial Edge

Coworking Spaces in Alabama

2023 Office Construction in Birmingham, AL

Largest Office Properties Recently Completed in Birmingham
Office building Address SF Completed
300 Ruffner Rd 300 Ruffner Rd, 35210 9,000 2024
Ensley Office Building (New Construction) 508 19th Street, 35218 30,000 2022
SteelRidge Center 2101 Old Columbiana Road, 35216 34,000 2021
2614 6th Avenue South 2614 6th Avenue South, 35223 9,000 2019
7 Huddle Drive 7 Huddle Drive, 35242 7,200 2018
7 Huddle Drive 7 Huddle Drive, 35242 7,200 2018
Bruno Cancer Center 2728 10th Avenue South, 35205 33,536 2014
5576 Grove Blvd 5576 Grove Blvd, 35226 4,500 2011
Office for Sale - Hwy 280 Birmingham 244 Inverness Center Dr, 35242 3,229 2009
St. Vincent's Birmingham 805 805 St. Vincent's Drive, 35205 148,844 2008

Worth noting among recent office completions on the Birmingham market is 300 Ruffner Rd, which is currently the largest new office development in the city, at 9,000 square feet.

Data provided by Commercial Edge

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This market stats report is based on analysis of city-level data that includes office properties equal to or larger than 25,000 square feet in size. Averages were calculated based on values dated January 1st 2023 through December 31st 2023. Construction pipeline data represented herein is valid as of April 2024. The information on this page was compiled using data provided by CommercialEdge, a market intelligence solution which offers comprehensive real market knowledge on all Birmingham commercial properties sized 25,000 square feet or larger.

While every effort was made to ensure the accuracy of the data presented in this report, the information is provided “as is” and neither CommercialCafe nor CommercialEdge can guarantee that the information provided is complete.