USA - ALABAMA Trends and Developments Contributed by: Adam J. Sigman, Crystal H. Walls, Nathan Stotser and Katie Sinclair, Dentons
Industrial Total e-commerce sales in the USA increased by 7.6% from 2022. E-commerce sales account - ed for 15.6% of total sales, with an expected rise to 16.6% by the end of 2024. The authors believe that Alabama experienced similar trends. Consequently, the acceleration in online sales has boosted the demand for industrial logistics spaces. Amazon accounted for nearly 37.6% of all US e-commerce in 2023. In Alabama, the online giant continues to announce new pro - jects, the most recent being a distribution center in Dothan expected to create up to 200 jobs. Industrial spaces have only experienced a mild hit, with demand for these spaces holding rela - tively well. A notable trend during this time has been an uptick in legal work related to the rezon - ing and development of new warehouse and industrial projects, with sale-leasebacks being used as a financing vehicle. With the inflated cost of building supplies and labor shortages, construction continued, but at a slower pace than usual. Traditional Retail Alabama’s real GDP retail trade growth rate dur - ing the third quarter of 2023 rose to 24.7%. The primary thriving end users are grocery stores, home improvement stores, and dollar stores, as well as outparcel-like fast-casual and fast- food restaurants. While inflation rates have hit consumers hard, there is still strong evidence of successful growth in the retail space. With retail moving from isolated stores to com - munity integration, and with consumer prefer - ence for outdoor centers, the decline of popular - ity for indoor malls continued. There have been strong demands in the area from budget retailers who can more easily slide into suburban spaces. The enclosed mall spaces provide opportunities
US Department of Treasury’s Financial Crimes Enforcement Network). While applying to most businesses, the CTA is likely also applicable to community associations, regardless of non-prof - it status. Business owners and those forming businesses should familiarize themselves with the new reporting requirements. In March 2024, the US District Court of the Northern District of Alabama declared the CTA unconstitutional; that decision is currently on appeal. Remote Employees The work-from-home model has now found its place in nearly every major business indus - try. On average, about 27% of US employees work remotely full-time, and 66% work remotely part-time. 36.2 million employees are expected to work remotely by the end of 2025. With this new norm comes new expectations and stand - ards. Many companies who have invested in remote work state that they have no intention of requesting employees to return to the office, and with decreased expenses and many reporting higher productivity, this shift makes sense. The vast majority of employees who work from home state they experience a better work-life balance, reduced stress and improved morale, and com - panies are now intaking fewer sick days. Birmingham’s office market ended the year at USD21.03 per square foot, which was slightly above the 2022 rate. While additional growth is expected in 2024, it will likely be minimal. None - theless, because Alabama has experienced var - ying levels of office building use, a trend over the course of the past few years has been to blend and extend leasing, with some tenants seeking a reduction in the square footage of their leased premises.
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