Coastal Alabama Market Minute

Uniquely positioned in Southern Alabama, Mobile and Baldwin Counties are experiencing one of the most significant periods of infrastructure investment and economic development in their history.  Several large-scale projects are progressing simultaneously, all of which will have a major impact in the continued economic growth and long-term viability of the region, and the entire Gulf South.

Notable projects include the following:

• A new passenger terminal at Mobile International Airport, located near Downtown Mobile, is under construction, with an anticipated opening date of late 2026 / early 2027
• Regions Arena, a new 10,000-seat entertainment and convention facility is nearing completion in Downtown Mobile, is slated to open in early 2027
• The Port of Mobile is flourishing because of the completed channel expansion project completed in late 2025, making the deepest container terminal on the Gulf Coast
• The Mobile River Bridge and Bayway Project has recently gained momentum, with plans for Phase I, estimated at $3.2 billion, include a new 6-lane cable-stayed toll bridge with high clearance over the navigational channel, restriping the existing Bayway to 3 lanes in each direction, and related interchange and traffic-flow improvements in both counties. The completion date is projected to be in 2031.
• Construction of the initial phase of the 2.8M SF Novelis aluminum manufacturing facility in N. Baldwin County is nearing completion, with a commissioning date of late 2026 planned.
• The Baldwin Beach Express Extension from 1-10 to I-65 remains at the forefront of long-term infrastructure enhancement to handle the high growth associated with Baldwin County.

The transformational projects mentioned herein are the result of several factors, including the unprecedented population growth of Baldwin County, as well as the impact of the tourism industry associated with visitors to Gulf Shores and Orange Beach.  The population growth is driven by domestic migration, as retirees, remote workers, businesses and families move to area, seeking quality of life, lower taxes, and access to the Gulf Coast. Annual population growth of Baldwin County remains above 2% -positioning the county as one of the fastest-growing in the State and the Southeast.

In addition to population growth, Baldwin County’s economy is certainly impacted by the 8.5M+ tourists that visit the area each year. This influx of people has fueled the continued success of such developments as The Wharf in Orange Beach a 400,000-sf shopping center that is 99% leased, the development of Margaritaville Resort, a new $300M project in Orange Beach, the $60M renovation of Tanger Mall in Foley, Embassy Suites Resort Hotel in Gulf Shores, and numerous other hotel, retail, and entertainment-focused projects.

From a commercial real estate market perspective, we see opportunities across the board to meet the inevitable growth.  In fact, multiple industrial projects totaling over 15M sf of development in Baldwin County alone are in various planning stages.  The Class-A office market in Baldwin County is practically non-existent – representing a great opportunity for Stirling to consider a campus-style office park that our team is working on.  Of course, future retail development opportunities will also result from the dynamic growth of the market. Stirling’s presence and involvement in the Coastal Alabama market is certainly exciting, and our Daphne team stands ready!

Jeff Barnes, CCIM

Senior Investment Advisor