Real Estate Facts: Industrial, Manufacturing Index Update

The manufacturing index compiled by the Institute for Supply Management (shown below) shows an improving industrial climate since just before the turn of 2009. This index can be used to show future need for industrial real estate like office/warehouses, distribution centers, and manufacturing facilities.

While the chart shows a national perspective, the climate here in Birmingham, Alabama does not see to have fared as poorly up to the 2009 point. According to the Graham Report, Birmingham's industrial buildings and service center buildings had an increased occupancy where bulk distribution and office/warehouse products showed decline.


In spite of continued negative media space, there is hope of improvement in the near-ish future. If the demand for space in Birmingham keeps with the national upward pace and developers don't rush to oversupply, the industrial market should firm up and create opportunity for conservative new development within a reasonable time frame. I am hesitant to call a time yet since the national curve has just made the turn, but once we get twelve or so months of positive demand, we should be able to better predict supply opportunities.