USA – ALABAMA Trends and Developments Contributed by: Adam J. Sigman, Crystal H. Walls, Nathan Stotser, Katie Sinclair and Courtney Bradshaw, Dentons
In 2024, Alabama became the second state in the USA to ban lab-grown meat (including the use of commercial real estate for this). With the hope that it will strengthen the poultry and live - stock industry in the state, this ban is applica - ble to industrial properties in Alabama as well as Tourism is an important industry in Alabama. With close to 29 million visitors last year, tour - ism for the state generated nearly USD4.3 billion in direct earnings. Gulf Shores, Alabama attracts many vacationers and was ranked the fifth best beach in the United States for 2024 by US News. Baldwin County alone saw around 8.3 million tourists in 2024, similar to 2023, and such con - sistency has had a ripple effect on many busi - nesses and individuals in that part of the state. Alabama set a record for tourism dollars in 2024, with travellers spending over USD23.5 billion. The Space and Rocket Center in Hunts - ville, being the top paid attraction in Alabama, draws roughly 650,000 visitors a year. Mobile County is home to the USS Alabama Battleship Memorial Park created to honour all Alabama residents who served in the US military, host- ing over 300,000 visitors annually. In Birming - ham, new restaurants, shopping areas and other exciting projects are ongoing, including the Star Amphitheater in Uptown, which will seat 9,000 for concerts and large events in downtown Bir - mingham. In total, Governor Kay Ivey states that approximately 245,500 jobs are generated from tourism in the state, and that number is expect - ed to grow. Construction In 2024, the construction industry continued to face challenges from rising interest rates, high construction costs and persistent inflation. These agricultural, retail and storage. Tourism and Entertainment
factors combined led to a noticeable decline in the number of new construction projects. Many developers adopted “wait-and-see” approach before starting construction projects in hopes of a cost decline. By October 2024, multifamily construction starts in the USA had dropped to 242,263 units, a sharp decrease compared to previous years. In addition, tariffs on key construction materi - als are causing concern among developers and contractors. Though not implemented in 2024, companies are paying attention as the tariffs could greatly impact supply chains, slowing the timelines of construction projects as well as affecting cost structure and budgeting. In practice, real estate owners will need to con - tinue considering safety compliance and prompt payment of contractors, emphasising 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. The authors have seen a recent increase in con - tractors incorporating arbitration clauses into their contracts to streamline conflict resolution, and construction disputes may be resolved more through mediation and arbitration as contractors seek to avoid the lengthy and often more costly litigation process. In 2024, Alabama passed a law that companies accepting economic incentives (which often connect to commercial real estate development with property tax abatement), cannot voluntarily recognise unions. Instead, development com - panies must have workers decide by vote, spe - cifically a vote in private. Recognising a union “solely and exclusively on the basis of signed labour organisation authorisation cards” rather than by secret ballot would cause the company
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