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The stage is set: commercial real estate in Huntsville poised to see continued success in 2025

The Rocket City continues to capture attention as one of the region’s fastest-growing commercial real estate sectors. 

As part of our continuing coverage of commercial real estate in the area, the Huntsville Business Journal talked with Brenda Conville, Vice President of Real Estate at Freedom Real Estate & Capital, LLC, to explore the market’s trajectory further. 

In our most recent CRE article with Jed Park, a Qualifying Broker at Park Properties Real Estate, Park mentioned Huntsville’s key developments to watch and notable potential changes coming to the city.

With decades of experience in the industry, Conville and her fellow brokers at Freedom, John Roberts and Doug McCullough, reiterated several of Park’s observations while offering unique perspectives on Huntsville’s evolving landscape.

Overall, Conville said the group has seen increased activity in the city’s commercial real estate market, which is “…being driven by strong population increases, our thriving local economy, and robust development activity.”

While the multi-family segment has slowed slightly due to a surge of projects coming online, Conville believes this pause won’t be forever.

“We anticipate multi-family will slow somewhat due to the number of projects coming online recently, but that should be temporary,” Conville said.

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Conville acknowledged some challenges in the office sector but expressed optimism that current vacancies will be absorbed by 2025.

For key developments, Conville and her team shared the many spaces reshaping Huntsville’s neighborhoods. 

One standout example is the Hays Farm project in South Huntsville, a transformative mixed-use development featuring Class A office space, a city park, and hundreds of residential units.

Downtown Huntsville continues to thrive with significant projects like the Front Row development, Lewter Hardware redevelopment, and several new hotels.

Plans for the Riverwalk and Skybridge promise to address floodplain concerns while enhancing the area’s commercial and recreational growth appeal.

Projects like Clift Farm, Town Madison, and MidCity are driving market activity, pushing property values higher. 

The political landscape may also influence Huntsville’s commercial real estate market in 2025. 

Conville pointed to optimism surrounding the incoming presidential administration and its potential focus on tax reforms, tariffs, and streamlined permitting processes.

She emphasized that the relocation of U.S. Space Command to Redstone Arsenal would have the most significant influence on the city’s growth.

“We are closely tracking several potential policy changes under the Trump administration, such as extending the Tax Cuts and Jobs Act, implementing new tariffs, and pursuing regulatory reforms aimed at streamlining federal permitting processes,” Conville added. 

She continued, “While these are important considerations, the most impactful decision for the Huntsville market would be the relocation of Space Command from Colorado Springs. This move would generate significant demand for real estate and provide a substantial stimulus to the local economy.”

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Conville also noted that local and state-level policies are likely to contribute to the positive advancement of Huntsville and Alabama as a whole.

The state’s “Working for Alabama” package consists of six bills intended to boost the state’s workforce, economy, and communities.

The legislation aims to increase labor force participation, train Alabamians for skilled, high-paying jobs, and improve the state’s citizens’ overall quality of life.

“We feel these enhancements will positively impact labor participation and economic activity, and we are optimistic that 2025 will be the first year we see tangible progress from these activities,” Conville said.

Even with all the optimism, Conville and her fellow brokers see some challenges ahead. 

Rising construction costs, higher interest rates, and labor shortages continue to cause problems for developers. 

Looking forward, Conville sees defense and aerospace continuing to drive Huntsville’s growth, especially with ongoing Redstone Arsenal and FBI campus expansions. 

Corporate headquarters recruitment efforts, led by the Huntsville Chamber of Commerce, are also expected to enhance the city’s reputation as a business hub. Meanwhile, the retail sector is also poised for further expansion to meet the needs of the area’s growing population.

Conville also noted that AI-driven companies will likely generate demand for specialized office and data center spaces, although energy infrastructure challenges remain. 

“Powering these spaces will present a challenge; however, as maintaining adequate power capacity will be critical to supporting the growth,” Conville explained.

In the same vein, strategic planning efforts will be needed to make sure Huntsville stays on the right path for its overall growth.

“Proactive planning and investment in infrastructure will be essential to ensure Huntsville’s continued success as a leading market for innovation and development in the coming years,” Conville said.