Center Point, Alabama - Vacancy Rates

[Dave Williamson]

Has anyone else been noticing a slow climb in vacancy rates for Center Point properties (35215 and even parts of 35235)?

The time to lease and vacancy have been higher than expected for 2019 based on my experience from the last few years. I also see far more properties available for lease than I have noticed in the past which has me fearing over saturation.

My sample size is the dozen properties we own over there so I’m not certain if it’s our strategies or the market as a whole.

-Dave

Keywords: Birmingham, Alabama, lease, vacancy, rent, buy and hold

[Jason Cory]

@Dave Williamson Unfortunately, you are now pretty well stuck in Centerpoint. The city got tired of funds and turnkey providers destroying their home values while increasing the crime in the area. This has led to many moving a little to the east, Grayson Valley (35235). It's a perfect example of why I say go to an area no one else is interested in to avoid the de-gentrification that will eventually follow. Local investors left well over a year ago knowing this was coming to Centerpoint. Now everyone is rushing to get their properties rented trying to slide a tenant in before the city starts enforcing the inspections and fines. Grayson Valley is unincorporated but part of the Huffman school district. Investors are trying to do to Grayson Valley what they did to Centerpoint now. Hueytown, Pleasant Grove, turnkey suburbs, etc., will follow the model of Centerpoint because they are owner occupied cities not tenant occupied. Cities are going to protect their infrastructure/revenue. This is also a way for a municipality to collect the revenue tax based on each properties income statement since they can identify which is making money and which is owner occupied. 

Feel free to reach out to me to discuss this more in-depth. 

An article explaining the headache coming to Centerpoint. Link