With a healthy 2025 behind it, Huntsville’s commercial real estate market continues to be stable with growth on the horizon.

According to the 2026 Graham Report, the market saw positive absorption in the industrial and office markets. Graham & Co. has been tracking and publishing data on the commercial real estate market since 2005.

While the industrial development pipeline has slowed, the market has time to fill some of the large vacant blocks of space.

“The industrial market has seen positive absorption already this year with a 300,000 square-foot lease recently signed in the Greenbrier area,” said Bart Smith, managing broker for Graham & Co.

Eli Lilly announced plans to invest more than $6 billion toward a next-generation pharmaceutical manufacturing facility in the Greenbrier area. Construction on the plant, which is expected to create 450 jobs, will begin this year.

In the office market sector, Cummings Research Park, the sector’s largest market, is facing mixed results, according to the report.

Several user purchases helped bring down the vacancy rate, but the growth at Redstone Gateway continues to have an adverse impact on the park’s vacancy rate.

However, help could be on the way, thanks to the defense industry and U.S. Space Command.

“The Huntsville office market remains stable and there isn’t a lot of new inventory coming online this year,” Smith said. “The market is poised for a rebound, especially if there are large office announcements or internal growth with current tenants.

“The defense industry and Space Command should be the key catalyst for growth in Cummings Research Park.”

The relocation of Space Command from Colorado Springs to Redstone Arsenal should have a dramatic impact on the overall market, the report said.

The move is expected to bring 1,200 to 1,700 direct jobs and an expected 3,000 indirect jobs. The 427,000 square-foot headquarters will be built on Redstone Arsenal and is expected to be completed in five to seven years.

“The Greenbrier submarket has been overbuilt but should recover with more activity like the recent lease,” Smith said. “The Jetplex market remains strong and that trend should continue.”

Huntsville industrial market

The vacancy rates for Huntsville’s industrial market fell to just below 10% in 2025, a decrease from the previous year’s vacancy rate of 11.98%. Most of the vacancies are in Greenbrier where 1.6 million square feet of newer speculative warehouses remains on the market, the report said.

The slowdown in new industrial construction and steady leasing velocity helped the market flip the trend toward healthier vacancy rates.

According to the report, the Jetplex and Greenbrier submarkets remain key transportation hubs and will continue to attract speculative developments. Their proximity to major highways and intermodal facilities make the area an attractive location for industrial growth.

Industrial market breakdown:

Jetplex industrial market
Jetplex Industrial Park, Huntsville’s largest industrial base, contains more than 13 million square feet of space and accounts for 35% of the total market. The 1,470-acre park includes a Foreign Trade Zone, U.S. Customs Port of Entry, and interstate access to I-565.
The Jetplex area vacancy rate was 9.62% in 2025, an increase from the previous year’s 7.42% vacancy rate. Leasing velocity remains healthy and has added some Class A buildings to the Market.
Its major tenants include Custom Assembly, Kohler, and SES.
North/Central industrial market
The vacancy rate for the North/Central submarket was 8.87% in 2025, down from the previous year’s 11.85%. The total square footage is 6.8 million square feet and represents 18% of the total industrial market.
The North/Central submarket expanded its tenant base with the recent additions of Blue Origin, Facebook, Aerojet, and Toyota. The submarket provides easy access to North Alabama and Southern Tennessee.
Chase industrial market
The Chase Industrial Park vacancy rate was 1.38% in 2025, down slightly from 1.41% in 2024. Chase represents 14% of the Huntsville industrial market and was developed by the Madison County Commission.
The park is almost exclusively single-tenant employers. Situated on 2,700 acres, only 50 acres remain available for development.
Its major tenants include PPG Industries, Hart & Cooley and Kommerling.
Greenbriar industrial market
The vacancy rate decreased to 15.07% in 2025, down from the previous year’s 20% as several new large speculative developments completed construction. More than 1.6 million square feet of new class A warehouse space remains available for lease.
Greenbrier is Huntsville’s newest industrial area and, with access to interstate highways and rail, it is an ideal location for companies that have logistics and transportation needs.
Its major tenants include Amazon, Nippon Express, Target and Mazda Toyota Manufacturing.

Huntsville office market

For two straight years, office vacancies have dropped, which is hopefully a good sign for the future.

The vacancy rate was 16.01% in 2025, a decrease from the previous year’s 19.43%, the report said. The office market had a positive absorption of 656,000 square feet in 2025, with most of the positive leasing coming in Cummings Research Park and the Madison/Jetplex market.

A pair of developments involving the defense sector are expected to create a positive effect on the market, the report said.

The impact of Space Command landing here will be felt in all sectors of commercial real estate. The timing and the number of new employees that are attached to this program vary but most are predicting around 5,000 new jobs.

The Golden Dome missile defense program could have a large positive impact on the office market, the report said. The multi-layered system would be supported by several suppliers and contractors that already have a large presence here.

Office market breakdown:

Cummings Research Park
This is the largest submarket in Huntsville, exceeding 12 million square feet, representing more than 70% of the Huntsville office market. The park is the second largest research park in the United States with 3,843 acres of land.
Its office market vacancy decreased in 2025 to 16.9%, down slightly from the previous year’s 17.81%. The multi-tenant vacancy decreased to 21.67% while the single tenant vacancy fell to 14.13%.
The potential impact of the Space Command relocation has not been felt yet, but expectations are that there will be an increase in office space demand.
Companies in the park include Fortune 500 companies, local entrepreneurial start-ups and biotechnology firms. Major tenants include Northrop Grumman, Lockheed Martin, Raytheon, and Yulista.
Jetplex/Madison
Vacancy for the Jetplex/Madison office market decreased to 9.67% in 2025, a sharp decline from the previous year’s 25.76%. Most of this decrease is due to the razing of a large office building on the former Remington plant.
The City of Madison is one of the fastest growing cities in Alabama and most office developments are in the healthcare and financial services markets.
Its major tenants include Boeing, City Of Madison, Hexagon, and Huntsville Hospital.
Huntsville downtown/central business district office
Several large mixed-use projects are under construction, and this will increase the office inventory once completed.
The old City Hall was demolished, and the remaining footprint will be converted to green space. Huntsville Hospital began construction on a 154,000 square-foot medical/office building on Madison Street.
Vacancies decreased to 15.6% in 2025, down from 18.17% in 2024. Multi-tenant vacancy was 16.33% while single tenant vacancy was 7.3%.
The office market consists of approximately 4 million square feet and is dominated by the business and health sectors including law firms, banking, accounting, and real estate companies. City, county and government employees also make the district their home.
Major tenants include Bradley, Bryant Bank, and the City of Huntsville.