USA - ALABAMA Trends and Developments Contributed by: Adam J. Sigman, Crystal H. Walls, Nathan Stotser and Katie Sinclair, Dentons
to rethink the properties’ potential; many subur - ban malls can be converted into office and pro - fessional spaces. The use of many consumer- focused spaces has also trended towards more experience-oriented entertainment activities such as: • venues featuring putting courses (eg, the new PopStroke location in Tuscaloosa, Alabama); and • new eateries that include family and group activities to enjoy. Smaller retailers are finding their way back into consumer popularity, particularly in Birmingham and Huntsville. Even with smaller retailers fac - ing much economic uncertainty, there has been continued success in the food industry in the metropolitan areas of Birmingham and Hunts - ville, proving the resilient nature of consumers today. Tourism and Entertainment Tourism is an important industry in Alabama. With close to 29 million visitors last year, tourism for the state generated nearly USD4.3 billion in direct earnings. Alabama’s Gulf Coast is heavily reliant on tourism and was ranked fifth among most-searched summer getaways in 2023. Bald - win County saw 8.3 million tourists in 2023 alone (similar to 2022), and such consistency has had a ripple effect on many businesses and individu - als in that part of the state. • Top Golf; • arcades; Tourism spending in Alabama increased by 4.8% in 2023. Any lingering restrictions on leisure and recreational activities, as well as crowd limita - tions, are no longer felt by the tourism indus - try in Alabama. Alabama’s Tourism Department Director Lee Sentell credits Alabama’s tourism
success to its moderately priced destinations, including its beaches, lakes, state parks, and museums. The Space and Rocket Center in Huntsville, being the top paid attraction in Ala - bama, draws roughly 850,000 visitors a year. Madison County was listed as the second most- visited region in Alabama, with Baldwin County being the most visited and boasting destinations such as Orange Beach and Gulf Shores. In total, approximately 240,000 jobs are generated from tourism in the state, and that number is expect - ed to grow. Construction Some major issues in construction continued in 2023, as the length of time on construction projects increased, despite prices for steel, lumber, and other materials finally plateauing. In these projects specifically, there is not neces - sarily a labor shortage; rather, contractors and subcontractors have been so busy that delays are practically inevitable. These factors, coupled with inflation and disruptions in supply chains, have and will continue to have an impact on project timelines. Furthermore, construction liti - gation has increased, largely due to delays and surprising cost increases. In practice, real estate owners will need to con - tinue considering safety compliance and prompt payment of contractors, emphasizing regular communications between all involved on a build - ing project and co-ordinating with material sup - pliers to avoid unnecessary delays, all of which create additional work and stress for owners. There may be an uptick in mediations and arbi - trations, due to construction delays; litigation attorneys should be prepared to deal with the increased flow by updating their knowledge on ever-evolving compliance laws.
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