At IronVest Partners, one of our core services is the acquisition and redevelopment of commercial real estate throughout the Birmingham metro area. To an outsider, the economic prospects in Birmingham might appear discouraging. Recent articles from outlets like AL.com have drawn attention to crime rates and population decline. For instance, Birmingham experienced its deadliest year on record for homicides. Other reports have spotlighted issues such as street racing and exhibition driving, along with the city’s plans to address these concerns.
In addition to these challenges, Birmingham has faced a continuous population decline over the past 50 years. While the metropolitan population has grown by only 18.8% in the last 40 years, neighboring cities like Nashville and Atlanta have seen much higher growth rates—84% and 116%, respectively, over the same period.
With all of the negative press, why are we investing in Birmingham, and why now?
Healthcare:
The University of Alabama at Birmingham is a cornerstone of the Birmingham community, employing over 28,000 people and enrolling more than 22,000 students. The institution delivers life-changing care through UAB Hospital and conducts groundbreaking research across its schools and medical facilities.
In just the past 18 months, UAB has demonstrated its significant impact and continued growth by acquiring Saint Vincent’s Hospital for $450 million, the Daniel Building for $16 million, and several other properties.
Cost of Living:
Birmingham has one of the lowest costs of living in the country and a quality of life that ranks among the best. For example, our property taxes are the lowest in the continental U.S., and our utility rates are highly competitive.
We also have access to outstanding healthcare, not only through UAB but also through facilities like Children’s of Alabama, Grandview Medical Center, and others. Unlike cities such as Atlanta, where you can spend hours in traffic every day, Birmingham allows you to reach almost any destination within 20 minutes.
Our city is surrounded by natural beauty, featuring gorgeous trees, state parks, and hiking trails. It also offers convenient access to the Gulf of Mexico, stunning lakes, and the Appalachian Mountains, making it an ideal place to live and explore.
Pockets of Growth:
The Birmingham metro area is home to numerous small markets that are experiencing significant growth and maturity. Over the past 40 years, Trussville has added 24,000 residents, Hoover has grown by 74,000, Alabaster has expanded by 27,000, and Vestavia Hills has increased by 23,000 residents.
Smaller towns like McCalla, Gardendale, Irondale, and Pelham are also growing steadily. We are putting together deals in these markets and great potential in the years to come.
Fun:
Birmingham has soul—it’s a city full of good food, great restaurants, and a vibrant atmosphere. On a per capita basis, I believe Birmingham arguably boasts the best food scene in the country. We’re proud to be home to seven James Beard Award winners.
Our iconic staples, like Chez Fon Fon, Bottega, Hot and Hot Fish Club, and Helen, continue to thrive, while the food and beverage scene keeps growing and evolving. Recently, new additions like Armour House and Current have opened to rave reviews. It wouldn’t be surprising to see either of these earn a major national award in the near future.
Civic Investment:
Our county and city have recently made significant investments to secure a bright future, all conveniently located within walking distance of one another. The BJCC underwent a much-needed $125 million facelift, transforming the facility into a premier venue that has already hosted numerous high-level sporting events.
Protective Stadium, a $200 million investment, is a state-of-the-art, 45,000-seat outdoor stadium that has enjoyed great success since its opening. Additionally, the Coca-Cola Amphitheater, a $46 million, 9,380-seat music venue, is set to open in 2025, further enhancing Birmingham’s entertainment landscape.
Economics:
Since our metro area is not experiencing rapid growth, asset prices remain reasonable and are not overpriced. This means that, with patience, there are opportunities to find great bargains. New commercial buildings are rarely constructed in our market, which helps maintain a healthy balance of supply and demand.
Unlike some larger markets, we don’t have institutional investors with massive cash reserves driving up prices. This makes Birmingham a market where smaller players can thrive. Our economy is diverse and not dependent on a single industry, providing stability and resilience. Additionally, our market is supported by numerous quality banks, and as any seasoned investor knows, a strong lender is the foundation of a successful real estate deal.
Looking Ahead: Birmingham’s Bright Future
We believe the best days for our metro area are still ahead. Birmingham holds more opportunity and untapped potential than any other mid-sized metro in the country. With the necessary infrastructure already in place, we are positioned for growth.
Our commitment to Birmingham remains strong, and we plan to not only continue but also increase our investments in the city. We are dedicated to doing our part to help Birmingham reach its fullest potential. We look forward to seeing each of you in 2025 as we work together to make a meaningful difference in this great city.