2017

M A R K E T S U R V E Y | H U N T S V I L L E

American Tire Distributors Warehouse | Photography by www.tenboair.com

Industrial Market Overview . . . . . . . . . 1

Jetplex Industrial. . . . . . . . . . . . . . . . . 2

North|Central Huntsville Industrial . . . . 3

Chase Industrial . . . . . . . . . . . . . . . . . . 4

Office Market Overview . . . . . . . . . . . 5

Central Business District Office . . . . 6

Jetplex | Madison Office . . . . . . . . . . 7

Cummings Research Park Office . . . 8

Cummings Research Park Map . . . . . 10

Retail Map. . . . . . . . . . . . . . . . . . . . . . . 12

Retail Market Overview . . . . . . . . . . . 14

Recent Graham Activities . . . . . . . . . 17

For Sale or Lease. . . . . . . . . . . . . . . . . 20

Graham Huntsville Group. . . . . . . . . . 23

TA B L E O F C O N T E N T S

The Huntsville commercial real estate market performed extremely well in the retail and

industrial sectors in 2016. The office market showed encouraging signs of improved occupancy,

hopefully signaling that the worst is behind us.

Industrial vacancy fell to 6.86%, the lowest rate the Huntsville market has seen in over a

decade. The Greenbrier area was once again a hot area for growth. The Huntsville Mega Site, a

1,252-acre site in Limestone County’s Greenbrier area, was officially announced as a TVA Mega

Site. Polaris expanded its plant, and it now encompasses over 900,000 square feet. The GE

Aviation plant is under construction and will be completed in 2017.

The office market showed signs of improvement as overall vacancy rates fell for the first

time since 2010, and vacancy is expected to continue to decrease. 2016 brought little new

construction, and over 550,000 sf of older office product was razed. The new master plan for

Cummings Research Park was announced, boosting interest in buyers. Several older properties

in CRP were purchased in areas slated for redevelopment.

The retail market was active once again in 2016. Vacancy dropped below 10% as several new

large projects began construction. Madison Square Mall was demolished to make way for the

MidCity development.

GRAHAM REPORT 2017HUNTSVILLE, ALABAMA

HUNTSVILLE INDUSTRIAL MARKET OVERVIEW

1

2017[ 23.3 MILLION SF TOTAL ]

OVERALL VACANCY 6.86%

SINGLE TENANT 4.7%

MULTI-TENANT 14.28%

Industrial Market Overview

G R A H A M & C O M PA N Y | 2 0 1 7 M A R K E T S U R V E Y | H U N T SV I L L E

2016INDUSTRIAL MARKET TOTAL SF VACANT SF 2012 2013 2014 2015 2016

SINGLE TENANT 18,084,313 SF 852,517 SF 9.89% 7.78% 3.36% 2.27% 4.7%

MULTI-TENANT 5,216,120 SF 745,057 SF 17.35% 17.52% 27.22% 22.69% 14.28%

TOTAL INDUSTRIAL 23,300,433 SF* 1,597,574 SF 11.62% 10.03% 8.97% 7.06% 6.86%

VACANCY RATEHUNTSVILLE

INDUSTRIAL ABSORPTION

2016 INDUSTRIAL MARKET

VACANCY RATE

HUNTSVILLE

INDUSTRIAL ABSORPTION

INDUSTRIALMARKET

SINGLETENANT

MULTITENANT

OVERALL

JETPLEX 6.27% 17.01% 9.51%

NORTH | CENTRAL 7.78% 5.26% 6.74%

CHASE 0% 0% 0%

* This number includes some industrial properties that do not fit within a certain submarket, but are an integral part of Huntsville’s industrial landscape.

INDUSTRIAL: Vacancy for Huntsville’s industrial market decreased for the 6th consecutive year to 6.86% in 2016. A large amount of new building space was added to the industrial market in 2016, including the Polaris plant in the Greenbrier area. Vacancy rates are expected to decrease again in 2017 as little new construction is planned.

The Huntsville market is outperforming the na-tional vacancy rate of 8.2%, the lowest rate since 2001, and has now dropped for 26 consecutive quarters since the rate peaked at 14.6% in the 2nd quarter of 2010.

Industrial building supply is not keeping pace with the healthy demand from supply-chain and distribu-tion users, creating rent increases across most of the nation. Rents for Class A industrial space increased by 6.6% in 2016, the highest increase in well over a de-cade. Rates are forecasted to increase again in 2017.

The Huntsville market had absorption of 853,000 sf in 2016, marking the 5th year in a row of positive absorption and the best performance since 2009. More than 2.2 million sf have been absorbed in the market since 2012. National absorption was 251 mil-lion sf for the year. The market has experienced 27

quarters of consecutive positive net growth, marking the longest streak in more than 20 years.

New construction for industrial buildings was again a hot sector in 2016 with more than 184 million sf under construction. Construction is expected to slow slightly in 2017, but should remain above the 100 million sf mark.

The investment market for industrial product was healthy again in 2016 with more than 46.3 billion in transactions. Demand for industrial facilities contin-ues to drive up the value of assets and the average cap rates nationally are now at 5.35%.

Industrial Announcements of Note:

• The Huntsville Mega Site, a 1,252-acre site in Limestone County’s Greenbrier area, was officially announced as a TVA Mega Site. This certification process requires at least 1,000 acres with interstate access, rail service capability and utilities capable of serving a large manufacturing company.

• American Tire Distributors occupied its new 100,000 sf industrial facility located on Mastin Lake Road near Highway 53. This project will lead to more than 100 new jobs for the Huntsville market. The building was developed as part of a build-to-suit by Graham & Company.

2

Jetplex Industrial Market

G R A H A M & C O M PA N Y | 2 0 1 7 M A R K E T S U R V E Y | H U N T S V I L L E

[ 13.4 MILLION SF TOTAL ]

OVERALL VACANCY 9.51%

SINGLE TENANT 6.27%

MULTI-TENANT 17.01%

LINE-XLINE-X supplies durable coatings used in truck

bedliners, as well as advanced protective coating

solutions for commercial, manufacturing,

municipal and industrial needs.

Vacancy for Jetplex Industrial Park increased

slightly to 9.51% in 2016. Several large lease and

sale transactions occurred in the Jetplex market, but the closing of the 550,000 sf Navistar plant had a negative impact on vacancy numbers.

Jetplex Industrial Park is Huntsville’s largest in-dustrial base, representing 58% of the Huntsville industrial market, and comprised of several smaller markets that surround Huntsville International Airport and the Intermodal Center. Jetplex Industri-al Park contains 1,470 acres and offers Foreign Trade Zone #83, U.S. Customs Port of Entry and interstate access via I-565. Jetplex South Industrial Park con-tains 1,400 acres and is located just south of Jetplex Industrial Park. Lowe Industrial Park is a 900-acre park originally designed to encompass the growth of Intergraph Corporation.

Recent Developments:

• The 275,000 sf former Parfums De Coeur building

located at 237 Laracy Drive sold for $4.3 million to a company relocating to the Huntsville area. The building was originally built in 1988 and includes 24.71 acres of land.

• HDT Global announced plans to expand its op-erations into an existing adjacent 206,000 sf facility at SouthPoint Business Park. The company manu-factures mobile command units and other defense related products to support the nation’s military.

• LINE-X signed a long-term, 61,450 sf lease at Jetplex Tradeport at 301 James Record Road.

• Navistar vacated its 550,000 sf facility at 646 James Record Road and moved its mid-range engine production to a plant in Illinois. The building was purchased by an investor with plans to lease the facility to a manufacturing or distribution company.

Major Area Tenants Include:

Kohler, Remington, Yulista, SES, & Georgia Pacific.

3G R A H A M & C O M PA N Y | 2 0 1 7 M A R K E T S U R V E Y | H U N T SV I L L E

North | Central Huntsville Industrial Market

AMERICAN TIRE DISTRIBUTORS

ATD is the nation's largest tire distributor,

serving 70,000 customers from over 115

distribution centers.

Vacancy for the North/Central Huntsville industrial

market decreased to 7.18% in 2016, down substan-tially since the 11.20% posted in 2014. The North/Central Huntsville industrial market is comprised of more than 4.7 million sf and represents 20% of the total Huntsville industrial market.

Most buildings in this market have smaller foot-prints than buildings in Jetplex or Chase, and many facilities in this market have been recently constructed along the Highway 53 corridor, providing good access to North Alabama and Southern Tennessee. The ten-ant mix in the area consists of companies in the auto-mobile industry, local and national service companies, and defense companies.

Recent Developments:

• Yulista broke ground on a 60,000 sf aviation hangar and 20,000 sf support facility at the Madison County Executive Airport in Meridianville. The facility will service both fixed and rotary-winged aircraft. Sierra Nevada also announced plans to build a 30,000 sf facility at the airport which will create 200 new aircraft jobs.

• BPI purchased the 35,192 sf building it has leased since the property’s construction in 2004. The purchase price was $1.67 million or $47 psf. Crown Group was the seller.

• The 67 acre North Huntsville Industrial Park

Phase III received the Alabama Advantage Site des-ignation. This application process was managed by the City of Huntsville and the Chamber of Com-merce. The site must meet certain size, zoning and accessibility regulations. The site is in close proxim-ity to the existing Toyota plant.

• 1505 The Boardwalk, an 85,000 sf building built in 1985, sold for $3,000,000.

• A 32,674 sf facility located at 6515 University Drive sold for $2.8 million to Hartlex Enterprises Inc.

Hartlex Antiques moved its operations to the facility.

• American Tire Distributors (ATD) took occupancy of its new 100,000 sf distribution facility.

Major Area Tenants Include:

Toyota, Verizon Wireless, Ferguson, and DirecTV.

[ 4.8 MILLION SF TOTAL ]

OVERALL VACANCY 6.74%

SINGLE TENANT 7.18%

MULTI-TENANT 5.26%

4

Chase Industrial Market

[ 5.2 MILLION SF TOTAL ]

OVERALL VACANCY 0%

SINGLE TENANT 0%

MULTI-TENANT 0%

G R A H A M & C O M PA N Y | 2 0 1 7 M A R K E T S U R V E Y | H U N T S V I L L E

Chase Industrial Park remained at 100% occupancy

in 2016, marking the second year in a row the va-

cancy rate has been 0%. Chase represents 22% of the entire Huntsville industrial market and was devel-oped by the Madison County Commission.

Chase Industrial Park is comprised almost exclu-sively of single tenant employers. Comprised of 1,700 acres in northeast Huntsville, only 50 acres remain available for new development. Products manu-factured in the park include medical instruments, DVDs, copper plastic products, and pharmaceuticals.

Major Area Tenants Include:

Technicolor, PPG Industries, Brown Precision, Schwarze Industries, Kommerling USA, and CF Flag.

PPG

PPG is a global supplier of paints, coatings, opti-

cal products, specialty materials, and fiber glass.

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Office Market Overview

[17.9 MILLION SF TOTAL]

OVERALL VACANCY 16.63%

SINGLE TENANT 7.87%

MULTI-TENANT 24.39%

HUNTSVILLE OFFICE MARKET OVERVIEW

2016OFFICE MARKET TOTAL SF VACANT SF 2012 2013 2014 2015 2016

SINGLE TENANT 8,429,634 SF 663,601 SF 4.81% 5.09% 10.79% 13.14% 7.87%

MULTI-TENANT 9,616,008 SF 2,320,803 SF 20.02% 25.64% 24.83% 25.03% 24.39%

TOTAL OFFICE 17,945,642 SF 2,984,404 SF 12.55% 15.47% 18.02% 19.31% 16.63%

VACANCY RATE

HUNTSVILLE

OFFICE ABSORPTION

OFFICE: Huntsville office market vacancy fell to 16.63% in 2016, marking the first time rates have declined since 2010. Huntsville vacancy is still well above the national vacancy rate of 12.90%. The na-tional average is at its lowest rate since 2009.

The office market had 128,000 sf negative absorp-tion in 2016, following 164,000 sf positive absorp-tion registered in 2015. The office market nationally posted absorption of more than 38 million sf, a sharp deceleration from the prior year’s 60+ million sf.

Vacancies in Huntsville’s Cummings Research Park (CRP) remained high, especially in multi-tenant buildings. Overall vacancy for CRP fell to 14.54%, but multi-tenant vacancies are still in the 25% range. The bulk of these vacancies remain in older, Class C buildings located in CRP East. Sev-eral of these buildings are being actively marketed for sale, and the use for these properties may change with new ownership.

New construction for office buildings slowed in 2016 with just under 40 million sf completed. The national trend points to a decrease in suburban office construction and increase in downtown markets. New construction in Huntsville was slow in the CRP market

2016 OFFICE MARKET

VACANCY RATE

HUNTSVILLE

OFFICE ABSORPTION

OFFICEMARKET

SINGLETENANT

MULTI -TENANT

OVERALL

CUMMINGSRESEARCH PARK

7.62% 25.4% 14.54%

JETPLEX/MADISON 8.46% 36.02% 31.04%

CENTRALBUSINESS DISTRICT 13.07% 17.68% 17.22%

but active in the CBD market with several mixed-use projects underway.

Rental rates increased nationally by an average of 6%, the highest increase since 2007. Rental rates in Huntsville remained steady in Class A and B inventory with annual increases averaging 2.5% to 3%. Rent concessions are still being offered in the CRP market to help backfill vacant space.

Office Announcements of Note:

• Boeing announced plans to bring 400 new jobs to Huntsville by the end of 2020 as part of a nationwide effort to simplify its workforce and facilities. The new Boeing buildings are expected to be built near its Jetplex Campus.

• HudsonAlpha Institute broke ground on a new 100,000 sf building. This is the fourth building on the biotech campus in CRP West, and the Institute now employs more than 700 people.

• Aerojet Rocketdyne will be consolidating six business units into two divisions: Space and De-fense. The Defense Business Unit Headquarters will be located in CRP. The Defense Advanced Programs will relocate to the Huntsville area to be closer to its customer base.

6

Central Business District (CBD) Office Market

[ 3.5 MILLION SF TOTAL ]

OVERALL VACANCY 17.22%

SINGLE TENANT 13.07%

MULTI-TENANT 17.68%

BRYANT BANK

Bryant Bank is an Alabama owned community

bank, operating only in the state of Alabama.

G R A H A M & C O M PA N Y | 2 0 1 7 M A R K E T S U R V E Y | H U N T S V I L L E

The Huntsville downtown/Central Business District

(CBD) office market consists of approximately three

million sf and is dominated by the business services sector including law firms, banking, accounting, and real estate companies. City, county and government employees also make the CBD their home.

Vacancy in the CBD decreased slightly to 17.22% in 2016 from the previous year’s 17.46%. Several mixed-use projects are under construction that will increase inventory of Class A office space. Vacancy in Class A product was low at 12.44%, so new space should be absorbed quickly, as there is not a large amount of existing inventory.

Recent Developments:

• Huntsville Utilities approved a rate schedule and agreements to bring Google Fiber to the Huntsville market. Google Fiber will use the utilities’ fiber optic cable to stream internet and TV services. The project is expected to begin roll-out in mid-2017.

• Bryant Bank broke ground on a 32,000 sf, four-story office building at Twickenham Square. The downtown office will be Bryant Bank’s main office in Huntsville and should be completed in the summer of 2017.

• Warren Averett, one of Birmingham’s largest CPA firms, announced plans to acquire Beason and Nalley. The Huntsville office will add 20 new em-ployees to the company.

• 802 Shoney Drive, a 12,920 sf multi-tenant building previously owned by Avadian Credit Union, was sold to Jeff Benton Homes. Built in 2012, the property is located across the street from the Jeff Benton Homes office.

Major Area Tenants Include:

Regions Bank, Bryant Bank, The City of Huntsville, BB&T, Lanier Ford, Bradley, and Huntsville Hospital.

BOEING

Boeing is the world's largest aerospace company

and leading manufacturer of commercial jetliners

and defense, space and security systems.

7G R A H A M & C O M PA N Y | 2 0 1 7 M A R K E T S U R V E Y | H U N T SV I L L E

Jetplex | Madison Office Market

[ 1.7 MILLION SF TOTAL ]

OVERALL VACANCY 31.04%

SINGLE TENANT 8.46%

MULTI-TENANT 36.02%

Vacancy for the Jetplex/Madison office market decreased

in 2016 to 31.04%, representing a substantial drop from the 44.23% rate in 2015. The main driver for this decrease was razing more than 600,000 sf of the former Intergraph campus that will become part of the Town Madison development.

Madison is one of the fastest growing cities in the State of Alabama and the demand for medical and business services remains strong. Many bank branches and medical related fa-cilities have been built in the Madison market in the last three years. Both Crestwood and Huntsville Hospital now have a presence in Madison.

New Developments:

• A Class A, 30,096 sf office building located at 8337 US Highway 72 was sold to Universal Health Realty Income Trust in March of 2016. The building was built in 2012 and the main tenant is Progress Bank.

• Boeing leased 30,000 sf at 124 Jetplex Boulevard. The 60,000 sf office building is located near the Boeing headquar-ters facility in Jetplex Industrial Park.

Major Area Tenants Include:

Intergraph, Boeing, Ability Plus, Huntsville Hospital, and Plat-inum Mortgage.

8 G R A H A M & C O M PA N Y | 2 0 1 7 M A R K E T S U R V E Y | H U N T S V I L L E

Cummings Research Park Office Market

[ 12.7 MILLION SF TOTAL ]

OVERALL VACANCY 14.54%

SINGLE TENANT 7.62%

MULTI-TENANT 25.4%

AEROJET ROCKETDYNE

Aerojet Rocketdyne is an aerospace and defense

leader providing propulsion and energetics to

customers around the world.

Cummings Research Park (CRP) overall office

vacancy decreased slightly to 14.54% in 2016 while multi-tenant vacancy increased to 25.40%.

Most vacancies in CRP are located in older, Class C product. Many buildings in this category might find a different use in the near future as the CRP master plan is advanced. This new plan should al-low for zoning changes in certain areas within the park, reducing the amount of older product in the park, especially in CRP East, while lowering va-cancy rates and increasing availability of mixed-use product benefiting CRP tenants.

CRP is the largest office market in Huntsville with more than 12 million sf, representing more than 70% of the total Huntsville office market. Cummings Re-search Park is the second largest research park in the United States, encompassing 3,843 acres. Only 430 acres remain for future development. The park mix ranges from Fortune 500 companies to local entrepre-neurial start-ups to award-winning small businesses.

Most companies in CRP act in a support role to meet various demands for military installations lo-

cated on Redstone Arsenal. Redstone is home to the U.S. Army Aviation and Missile Command (AM-COM), the Space and Missile Defense Command, numerous Program Executive Offices (PEO), and major components of the Defense Intelligence Agen-cy and the Missile Defense Agency.

9G R A H A M & C O M PA N Y | 2 0 1 7 M A R K E T S U R V E Y | H U N T SV I L L E

Cummings Research Park Office Market

MANTECH

ManTech offers a suite of government and

commercial solutions to address security and

technology challenges.

KORD TECHNOLOGIES

Kord Technologies focuses on providing

engineering, information technology and support

services to defense and civilian agencies.

Recent Developments:

• The new 40,000 sf LogiCore building on Voyager Way was completed. The building offers multiple areas for collaborative work space, an event center, auditorium, and fitness center. LogiCore was founded in 2002 and employs more than 200 people.

• HudsonAlpha continues to expand its campus with an announced 100,000 sf addition. The Hudson-Alpha Institute has had a dramatic positive influence in CRP, and according to a study by the University of Alabama in Huntsville, has had an economic impact of more than $1.3 billion since its inception in 2006.

• The Digium building located at 445 Jan Davis Drive was purchased by Select Income REIT in Sep-tember of 2016. Digium will remain as the single tenant in the facility. The 57,000 sf building was built in 2007.

• Kord Technologies purchased a 33,581 sf building at 635 Discovery Drive. The building was formerly owned by Reaclo. Kord Technologies is a woman-owned small business headquartered in Huntsville, AL.

• 500 Discovery Drive was purchased by Discovery Office Props, LLC in February of 2016 for $57.50 psf. The 20,000 sf building was built in 1991 and was for-merly leased by Synapse Wireless.

Major Area Tenants Include:

SAIC, Aegis Technologies, Adtran, Northrop Grum-man, Dynetics, Lockheed Martin, Camber Corpora-tion and numerous other high-tech companies.

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2016RETAIL MARKET TOTAL SF VACANT SF 2013 2014 2015 2016

UNIVERSITY WEST 4,087,149 SF 765,809 SF 16.57% 19.86% 18.74% 11.78%

HIGHWAY 72/MADISON 2,780,223 SF 170,546 SF 5.92% 7.32% 6.13% 6.88%

JONES VALLEY/HAMPTON COVE 2,092,677 SF 70,100 SF 2.80% 3.0% 3.55% 4.44%

SOUTH HUNTSVILLE 2,702,164 SF 270,677 SF 7.55% 10.70% 10.02% 8.02%

NORTH HUNTSVILLE/HARVEST 1,902,200 SF 351,778 SF 14.62% 19.01% 18.49% 14.62%

TOTAL RETAIL 13,564,413 SF 1,628,910 SF 10.27% 12.92% 12.01% 9.10%

VACANCY RATE

14 G R A H A M & C O M PA N Y | 2 0 1 7 M A R K E T S U R V E Y | H U N T S V I L L E

Retail Market Overview

HUNTSVILLE RETAIL MARKET OVERVIEW

[13.6 MILLION SF TOTAL]

OVERALL VACANCY 12.01%

RETAIL:

Vacancy for the Huntsville retail market declined dramatically to 9.10% in 2016 from the previous year’s rate of 12.01%. This decline was primarily due to the demolition of Madison Square Mall and an empty Walmart.

New developments, especially mixed-use, have begun in several locations across the Huntsville market. Town Madison is under construction along I-565. It will bring new retail, hotel, office and apart-ments to the south Madison area. The MidCity de-velopment is being constructed on the old Madison Square Mall site and will include 150,000 sf of retail and an amphitheater when complete.

On the national level, rental rates increased again in 2016 and Huntsville is no exception. Many of the new, Class A retail developments have asking rates in the mid to upper $20 psf range.

Retailers, especially companies that have offered big box stores, are struggling with the effects of e-commerce. The footprint of retail stores should con-tinue to shrink to lower the cost of doing business in the new e-commerce era.

The Madison/Hwy. 72 market has a vacancy rate of 6.88% and continues to expand west through Madison towards the County Line Road and Ath-ens, AL areas. Land prices and rental rates have in-creased in this market and should continue unless traffic becomes an issue.

Vacancy in Huntsville’s largest submarket, Uni-versity Drive, decreased to 11.78% in 2016, represent-ing a substantial decrease from the prior year’s rate of 18.74%. The purchase and razing of the former Madison Square Mall had an immediate and posi-tive impact on vacancy as the Mall had experienced high vacancy for some years. University Place Shop-ping Center is under new ownership. Many of the vacancies that existed prior have been back filled, and the center is now thriving.

The North Huntsville submarket vacancy rate de-clined to 14.62%. Planet Fitness announced plans to lease 26,000 sf in The Fountain, a 377,026 sf develop-ment anchored by Home Depot and Books-A-Mil-lion. New development is still slow in this market so vacancy should remain stable.

South Huntsville vacancy decreased to 8.02% and should continue to improve as the overpass construction along South Parkway moves toward completion. Several small retail centers have been constructed in the area in the last 12 months, and leasing activity at those centers has been strong.

The Jones Valley and Downtown markets have several new projects underway that have been well received by the public. The 90,000 sf Merchants Walk development anchored by Whole Foods landed sev-eral new restaurants and retailers new to the area. Two new planned developments include the 41,000 sf Merchants Square and the 53,000 sf Times Plaza.

15G R A H A M & C O M PA N Y | 2 0 1 7 M A R K E T S U R V E Y | H U N T SV I L L E

Retail Market Overview

RETAIL O CCUPANCY BY TYPE

472 PROVIDENCE MAIN

Edgar’s Bakery opened its first Huntsville location

at The Village of Providence.

MADISON SQUARE MALL

Demolition of Madison Square Mall is well under-

way. The site will be used for the MidCity Hunts-

ville development.

MIDCITY HUNTSVILLE

MidCity Huntsville, a 100 acre mixed use commu-

nity, is a $350 million redevelopment at the former

Madison Square Mall Site. MidCity Huntsville will

offer specialty retail, high-tech office, residential

units and a boutique hotel.

RETAIL OCCUPANCY BY TYPE

2016 Activity:

• The 40,000 sf Walmart Neighborhood Center on Bailey Cove sold for $12.9 million to an out-of-town investor for a 5.30% cap rate.

• The 81,963 sf Plaza Centre Shopping Center on Hughes Road sold for $4.75 million ($57.95 per sf) to an LLC from Birmingham. Kroger vacated the cen-ter in 2016 to move to its new location at Midtown Market Place.

• Publix Supermarkets purchased the 64,837 sf Madison Center located on Madison Boulevard for $9.1 million. Publix is the largest tenant in the center.

16 G R A H A M & C O M PA N Y | 2 0 1 7 M A R K E T S U R V E Y | H U N T S V I L L E

Retail Market Overview

RETAIL VACANCY RATE BY TYPE

TOTAL RETAIL SF BY MARKET TOTAL RETAIL SF BY TYPE

2016

T YPE VACANCY RATE

NEIGHBORHOOD 11.68%

NEIGHBORHOOD/ANCHORED 8.64%

POWER CENTER 8.72%

ENCLOSED MALL 1.91%

LARGE BOX 9.23%

Announcements of Note:

• Academy Sports completed and opened a new 63,000 sf building at the intersection of Memorial Parkway and Drake Avenue. The site was formerly a Wal-Mart.

• Publix will anchor the Shoppes at Redstone devel-opment that will be located at Zierdt Road and Mar-tin Road. Over 50,000 sf will be available for retail tenants, as well as six outparcels.

• RCP Companies and Yedla Hotel Management

announced plans for a new 150-unit boutique hotel to be built at CityCentre in downtown Huntsville. CityCentre will also feature a 12,000 sf artisanal food hall called The Public Market.

• TopGolf will build a $20 million facility at the MidCity development planned for the former Madi-son Square Mall site.

17G R A H A M & C O M PA N Y | 2 0 1 7 M A R K E T S U R V E Y | H U N T SV I L L E

Recent Graham Activities

4960 CORPORATE DRIVE

2,510 SF – 4960 Corporate Drive Huntsville, ALGraham represented Butler America in its lease of space at Corporate Park Office Center.Agent: Tyler Fanning

LEASED

BIG SPRING SUMMIT

9,234 SF – 100 Church Street, 4th Floor Huntsville, ALGraham represented PNC Bank in the disposition of this 4th floor condo at Big Spring Summit in downtown Huntsville.Agent: Tyler Fanning

14487 HIGHWAY 411

2,668 SF – 14487 Highway 411 Odenville, ALGraham represented PNC Bank in the disposition of this facility to The Utilities Board of the Town of Odenville.Agent: Tyler Fanning

107 JETPLEX LANE

12,200 SF – 107 Jetplex Lane Madison, ALGraham represented Midsouth Paving in its lease of this industrial facility.Agent: Tyler Fanning

SOLDSOLD

802 SHONEY DRIVE

12,920 SF – 802 Shoney Drive Huntsville, ALGraham represented the owner in the disposition of this multi-tenant office building.Agents: Tyler Fanning & Walter Brown, SIOR

191 JESSE BENNETT DRIVE

18,500 SF – 191 Jesse Bennett Drive Madison, ALGraham represented Pace Runner, Inc. in leasing space at this industrial facility.Agent: Jeremy Pope, CCIM, SIOR

LEASED

LEASED

SOLD

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Recent Graham Activities

890 EXPLORER BOULEVARD

40,141 SF – 890 Explorer Bouelvard Huntsville, ALGraham represented Dynetics in its lease of space in Cummings Research Park.Agent: Bart Smith, CCIM, SIOR

PROGRESS CENTER

3,698 SF – 6767 Old Madison Pike Huntsville, ALGraham represented All Native Systems in leasing space at Progress Center.Agent: Bart Smith, CCIM, SIOR

LEASED

1038 RESEARCH BOULEVARD

9,475 SF – 2001 Nichols Drive Huntsville, ALGraham represented the landlord in leasing space to ASRI.Agents: Bart Smith, CCIM, SIOR & Tyler Fanning

2001 NICHOLS DRIVE

LEASED

124 JETPLEX BOULEVARD

30,766 SF – 124 Jetplex Boulevard Huntsville, ALGraham represented the landlord in leasing space to Boeing.Agents: Bart Smith, CCIM, SIOR

Jeremy Pope, CCIM, SIOR

LEASED

6703 ODYSSEY DRIVE

5,002 SF – 6703 Odyssey Drive Huntsville, ALGraham represented Draper Labs in its lease of space at Park Place in Cummings Research Park.Agent: Bart Smith, CCIM, SIOR

358 DAN TIBBS ROAD

10,000 SF – 358 Dan Tibbs Road Huntsville, ALGraham represented Floors, Inc. in its lease of space in Spacegate Industrial Park.Agent: Bart Smith, CCIM, SIOR

LEASED

LEASED

LEASED

19G R A H A M & C O M PA N Y | 2 0 1 7 M A R K E T S U R V E Y | H U N T SV I L L E

Recent Graham Activities

255 SHORT PIKE ROAD

208,031 SF – 255 Short Pike Road Huntsville, ALGraham represented the owner in leasing this industrial facility to Navistar.Agent: Jeremy Pope, CCIM, SIOR

LEASED

1000 JAMES RECORD ROAD

104,825 SF – 1000 James Record Road Huntsville, ALGraham represented both landlord and tenant in leasing this industrial space to Intercept Industries.Agent: Jeremy Pope, CCIM, SIOR

LEASED

5828 RESEARCH PARK BOULEVARD

30,000 SF – 5828 Research Park Boulevard Huntsville, ALGraham represented The Mane Choice in leasing this industrial facility. Agent: Jeremy Pope, CCIM, SIOR

237 LARACY DRIVE

275,000 SF – 237 Laracy Drive Huntsville, ALGraham represented the owner in the disposition of the former Parfums de Coeur facility in Jetplex.Agent: Jeremy Pope, CCIM, SIOR

SOLD

PROGRESS CENTER

8,887 SF – 6767 Old Madison Pike, Bldg 7 Huntsville, ALGraham represented Kaman Industrial Technologies in its lease of space at Progress Center.Agent: Jeremy Pope, CCIM, SIOR

29850 JONES AVENUE

45,100 SF – 29850 Jones Avenue Ardmore, ALGraham represented the owner in the disposition of this industrial property.Agent: Jeremy Pope, CCIM, SIOR

SOLDLEASED

LEASED

20 G R A H A M & C O M PA N Y | 2 0 1 7 M A R K E T S U R V E Y | H U N T S V I L L E

For Sale or Lease

SITE

I-65 & BIBB GARRETT ROAD

355 QUALITY CIRCLEHUNTSVILLE, AL

AVAILABLE FOR LEASE: Up to 45,715 SF

• LEED Certified flex space in Thornton Research Park

• 22' – 25' Ceiling height

• ESFR Sprinkler

Contacts: Jeremy Pope, CCIM, SIOR Tyler Fanning jeremyp@grahamcompany.com tylerf@grahamcompany.com

355 QUALITY CIRCLE

1500 & 1525 PERIMETER PARKWAY HUNTSVILLE, AL

AVAILABLE FOR LEASE: Up to 5,233 Contiguous SF

• Class A multi-tenant office building in the Cummings Research Park area

• Lake views with patio areas at the lake

• Security and access control

Contact: Tyler Fanning tylerf@grahamcompany.com

BIBB GARRETT ROAD AT INTERSTATE 65TANNER, AL

AVAILABLE FOR SALE: 97 Acres

• Located in Limestone County, AL

• Suitable for industrial development

• Excellent interstate access

Contact: Tyler Fanning tylerf@grahamcompany.com

4100 MARKET STREET AT REDSTONE GATEWAYHUNTSVILLE, AL

AVAILABLE FOR LEASE: Up to 36,000 SF

• Pedestrian friendly, mixed use business environment

• Situated at the primary access point of Redstone Arsenal with visibility from I-565

Contacts: Bart Smith, CCIM, SIOR Tyler Fanning barts@grahamcompany.com tylerf@grahamcompany.com

Jeremy Pope, CCIM, SIOR

jeremyp@grahamcompany.comREDSTONE GATEWAY

PERIMETER CORPORATE PARK

7500 SOUTH MEMORIAL PARKWAYHUNTSVILLE, AL

AVAILABLE FOR LEASE: Up to 10,000 SF

• Unique office/retail opportunity in South Huntsville

• Center offers high visibility, convenient ingress/egress, and monument signage opportunities

Contacts: Bart Smith, CCIM, SIOR Tyler Fanning barts@grahamcompany.com tylerf@grahamcompany.com

MAIN STREET SOUTH

21G R A H A M & C O M PA N Y | 2 0 1 7 M A R K E T S U R V E Y | H U N T SV I L L E

For Sale or Lease

2914 GREEN COVE ROADHUNTSVILLE, AL

AVAILABLE FOR SALE: 85,000 SF

• Fully heated and air-conditioned

• Situated on 7.73 acres

• Excellent accessibility to South Memorial Parkway

Contact: Bart Smith, CCIM, SIOR barts@grahamcompany.com

124 JETPLEX BOULEVARDHUNTSVILLE, AL

AVAILABLE FOR LEASE: 29,234 SF

• Office building located in Jetplex Industrial Park

• SCIF space available

Contacts: Bart Smith, CCIM, SIOR Jeremy Pope, CCIM, SIOR

barts@grahamcompany.com jeremyp@grahamcompany.com

2914 GREEN COVE ROAD

124 JETPLEX BOULEVARD

110 WYNN DRIVEHUNTSVILLE, AL

AVAILABLE FOR LEASE: 215,485 SF

• Located in Cummings Research Park East

• Suitable for office, lab, and light manufacturing

• Special use, high bay testing facility available

Contact: Bart Smith, CCIM, SIOR

barts@grahamcompany.com

1638 THOMPSON ROADHARTSELLE, AL

AVAILABLE FOR LEASE: 59,000 SF

• Excellent access to I-65 at Exit 325

• Fully heated, cooled, and fire sprinklered

• Additional 90,000 SF building pad available

Contact: Bart Smith, CCIM, SIOR

barts@grahamcompany.com

1638 THOMPSON ROAD

PROGRESS CENTER6767 OLD MADISON PIKE, HUNTSVILLE, AL

AVAILABLE FOR LEASE: Up to 7,728 SF

• Flexible floor plans

• Fiber optics capability

• Convenient access to major traffic arteries

Contact: Bart Smith, CCIM, SIOR

barts@grahamcompany.com

PROGRESS CENTER

110 WYNN DRIVE

22 G R A H A M & C O M PA N Y | 2 0 1 7 M A R K E T S U R V E Y | H U N T S V I L L E

For Sale or Lease

1000 JAMES RECORD ROADHUNTSVILLE, AL

AVAILABLE FOR LEASE: 129,849 SF

• Industrial facility in Jetplex Industrial Park

• Located one mile from International Intermodal Center

• Norfolk Southern rail spur

Contact: Jeremy Pope, CCIM, SIOR

jeremyp@grahamcompany.com

PHYSICIANS’ PLAZAPHYSICIANS’ PLAZA

2995 WALL TRIANA HIGHWAY & 799 JAMES RECORD ROADHUNTSVILLE, AL

AVAILABLE FOR LEASE: Up to 60,000 SF

• Located in Jetplex Industrial Park

• Only 1.5 miles to I-565

• 19' Clear height

Contact: Jeremy Pope, CCIM, SIOR

jeremyp@grahamcompany.com

481 FIRE TOWER ROADGRANT, AL

AVAILABLE FOR SALE: 82,500 SF

• 100% Conditioned facility situated on 20 acres

• 21' – 27' Ceiling height

• 3 Dock high doors; 2 Drive-in doors

Contact: Jeremy Pope, CCIM, SIOR jeremyp@grahamcompany.com

450 11TH STREETARAB, AL

AVAILABLE FOR SALE: 94,652 SF

• Situated on 10 acres

• 10 Dock high doors; 5 Grade level doors

• 20' Clear ceiling height

Contact: Jeremy Pope, CCIM, SIOR

jeremyp@grahamcompany.com

1000 JAMES RECORD ROAD

JETPLEX CENTER

120 SIBLEY ROADRUSSELLVILLE, AL

AVAILABLE FOR SALE: 110,450 SF

• Situated on 10.44 acres

• Industrial facility in Russellville Industrial Park

• 16' – 25' Clear ceiling height

• Fiber optic cable in place

Contact: Jeremy Pope, CCIM, SIOR

jeremyp@grahamcompany.com

450 11TH STREET

120 SIBLEY ROAD

481 FIRE TOWER ROAD

23G R A H A M & C O M PA N Y | 2 0 1 7 M A R K E T S U R V E Y | H U N T SV I L L E

Graham Huntsville Group

JEREMY POPE, CCIM, SIOR

SENIOR VICE PRESIDENT

jeremyp@grahamcompany.com

JOINED GRAHAM & COMPANY: 2000

AFFILIATIONS/HONORS:

• Certified Commercial Investment

Member (CCIM) designation

• Society of Industrial & Office

Realtors (SIOR) designation

• Member NAIOP – AL Chapter

• Huntsville/Madison County Convention & Visitors Bureau,

Board Member

CLIENTS INCLUDE:

• Tyco • Owens Corning • Intergraph • Huntsville Hospital

• Kuehne & Nagel • Harris Corporation • Siemens

• Willbrook Solutions • Wolseley • Ferguson • Continental

• International Truck & Engine • Synapse Wireless

TYLER FANNINGVICE PRESIDENT

tylerf@grahamcompany.com

JOINED GRAHAM & COMPANY: 2007

AFFILIATIONS/HONORS:

• CCIM Candidate (Certified

Commercial Investment Member)

• Huntsville Rotaract Club,

Member

• Huntsville Committee of 100 Young Professionals

Initiative, Member

• Huntsville High School Wrestling Coach

CLIENTS INCLUDE:

• MITRE • Prometric • PNC Bank • Aerospace Corporation

• Stephen Gould Corporation • Wells Fargo Securities

• Southern Research • DRS • LYBD Engineering

BART SMITH, CCIM, SIOR

MANAGING BROKER

barts@grahamcompany.com

JOINED GRAHAM & COMPANY: 2002

AFFILIATIONS/HONORS:

• Certified Commercial Investment

Member (CCIM) designation

• Society of Industrial & Office

Realtors (SIOR) designation

• North Alabama Commercial (NALCOM), Past President

• Alabama Commercial Real Estate Center (ACRE),

Leadership Council

• Alabama CCIM Chapter, Board Member

• Huntsville Rotary Club, Strive Mentor

• Salvation Army – Advisory Board

• First Methodist Church – Leadership Team

CLIENTS INCLUDE:

• Sanmina-SCI • Northrop Grumman • Cisco • COPT

• Stanley Corporation • Wells Fargo Securities • DirecTV

• ATK • MITRE • Dynetics • AEGON • Orbital Sciences

• Booz Allen Hamilton • MetLife • Rockwell Collins

ERIKA HARLESSREAL ESTATE ASSISTANT

erikah@grahamcompany.com

Corporate Services

24 G R A H A M & C O M PA N Y | 2 0 1 7 M A R K E T S U R V E Y | H U N T S V I L L E

INDIVIDUALMEMBERSHIPS

INDIVIDUAL MEMBERSHIPS

SIOR–Society of Industrial & Office Realtors

CCIM–Certified Commercial Investment Member

BOMA–Building Owners and Managers Association

CRE–Counselors of Real Estate

IREM–Institute of Real Estate Management

ICSC–International Council of Shopping Centers

LEED–Leadership in Energy and Environmental Design

Appraisal Institute

A B O U T G R A H A M & C O M P A N Y

Founded in 1978, Graham & Company is a full-service commercial real estate firm based in Birmingham. With

offices in Birmingham and Huntsville, Alabama and Jacksonville, FL and the Gulf Coast, the company offers

professional services including sales, leasing, property management (GCP), appraisal, consulting, investment

and development. In response to client demand, Graham has systematically extended its range of services and

geographic reach, now serving clients throughout Alabama and several surrounding states.

C O M M U N I T Y I N V O LV E M E N T

Part of making our community a better place to live and work is an important tenet of Graham & Company.

Our brokers and agents are active with local organizations such as the Salvation Army, Habitat for Humanity,

volunteer coaching, church leadership and land conservation organizations. These good causes reflect a

diversity among our associates in the Huntsville office, and our collective commitment to making Huntsville a

place we are proud to call home.

NAIOP–Commercial Real Estate Development Association

A F F I L I AT I O N S

Cover: American Tire Distributors Warehouse

6240 Mastin Lake Road, Huntsville, AL 35810

Aerial Photography by www.tenboair.com

Copyright © 2017

Reproduction, in whole or part, of this report is prohibited.

Information deemed reliable, but not guaranteed.

Special thanks to Hiroko Sedensky and the Huntsville/Madison

County Chamber for providing the Cummings Research Park

map and the Major Retail Stores map, pages 10-13.

110 Office Park Drive

Suite 200

Birmingham, AL 35223

TEL 205.871.7100

FAX 205.871.3331

| B I R M I N G H A M

grahamcompany.com

355 Quality Circle

Suite E

Huntsville, AL 35806

TEL 256.382.9010

FAX 256.382.9011

| H U N T SV I L L E

550 Water Street

Suite 1225

Jacksonville, FL 32202

TEL 904.281.0003

FAX 904.281.0849

| JAC K S O N V I L L E

100 Richard Jackson Blvd.

Suite 115

Panama City Beach, FL 32407

TEL 850.563.1500

FAX 850.563.1504

| G U L F C OA S T

MEASURE US BY OUR ACTIONS

CORPORATE

Steve Graham, Chairman

Mike Graham, President

OFFICE & INDUSTRIAL

Tyler Fanning

Jeremy Pope, CCIM, SIOR

MANAGING BROKER

Bart Smith, CCIM, SIOR

REAL ESTATE ASSISTANT

Erika Harless

GRAHAM & COMPANY PERSONNEL - Huntsville, Alabama

MEASURE US BY OUR ACTIONS

355 Quality Circle, Suite EHuntsville, AL 35806TEL 256.382.9010

grahamcompany.com

BIRMINGHAM HUNTSVILLE JACKSONVILLE GULF COAST