Population
212,237
Growth (5Y)
+3.2%
Median Income
$45,000
Metro GDP
$85B
Market Overview
Birmingham is Alabama's largest metro and one of the Southeast's most underappreciated NNN investment markets. Cap rates of 5.75–7.5% are among the most attractive in the country for investors seeking yield without sacrificing corporate tenant credit quality. The market is anchored by the University of Alabama at Birmingham (UAB), the region's largest employer and one of the South's premier medical research institutions. NNN tenants — particularly Dollar General, AutoZone, and fast food QSR brands — perform exceptionally well in Birmingham's dense suburban corridors like Hoover, Vestavia Hills, and Trussville.
Key Highlights
UAB — one of the South's largest medical centers — anchors a massive healthcare employment cluster
Alabama's no-income-tax-on-retirement policy drives retiree population growth
Low cost of living attracts remote workers, young families, and corporate back-office relocations
Among the highest cap rates available in the Southeast for investment-grade NNN tenants
How the Market Has Evolved (2020–2025)
Birmingham's NNN market from 2020 to 2025 was shaped by two forces: healthcare sector expansion and suburban residential growth. UAB's continued expansion as a medical research hub added thousands of professional jobs. Meanwhile, Hoover and the southern suburbs saw strong population inflow from young families seeking affordable alternatives to Atlanta or Nashville. Dollar General and Family Dollar remain the most active NNN developers in the market, but 2022–2025 saw the first meaningful QSR drive-thru development wave — Chick-fil-A, Starbucks, and Dutch Bros all opened first or second Birmingham locations. Cap rates have declined modestly from 6.5–8.5% in 2020 to 5.75–7.5% by 2025 as investor awareness of Birmingham's fundamentals has grown.
Why Invest in Birmingham
- 1Among the highest NNN cap rates in the Southeast with investment-grade tenant guarantees
- 2UAB medical complex creates recession-resistant employment and consumer spending
- 3Alabama's low tax environment continues attracting population and corporate investment
- 4Excellent entry pricing relative to comparable Sun Belt markets
Recent NNN Activity
"2025 has seen strong NNN demand for Dollar General and AutoZone assets in Birmingham's northern suburbs. First-generation Chick-fil-A locations in Hoover and Vestavia Hills are trading at 5.75–6.25% cap rates. The market remains one of the most attractive for yield-focused accredited investors."
NNN Snapshot
Cap Rate Range
5.75% - 7.5%
Price Range
$1.1M - $3.2M
Avg Lease Term
12 Years
Unemployment Rate
3.5%
Active NNN Tenants
McDonald'sDollar GeneralBurger KingAutoZoneO'Reilly Auto PartsWalgreensTaco Bell
Major Employers
UAB MedicineRegions BankProtective LifeHonda ManufacturingVulcan MaterialsEncompass Health
Find NNN Properties in Birmingham
Our advisors have exclusive, off-market NNN inventory in the Birmingham market right now. Contact us to see what's available before it hits the public market.