Population
215,006
Growth (5Y)
+18.5%
Median Income
$62,000
Metro GDP
$29B
Market Overview
Huntsville is the most compelling emerging NNN market in the Southeast United States. Anchored by Redstone Arsenal — one of the nation's largest Army installations — and NASA's Marshall Space Flight Center, Huntsville's economy is uniquely insulated from private-sector recessions. The city's defense and aerospace concentration has attracted Boeing, Lockheed Martin, Raytheon, and dozens of contractors, creating a high-income professional workforce that supports premium retail and QSR demand. NNN cap rates of 5.5–7.25% are among the most attractive in the country given Huntsville's exceptional economic fundamentals.
Key Highlights
America's fastest-growing large city — 18.5% population growth over 5 years
Federal defense and aerospace spending creates an extremely recession-resistant economy
Highest concentration of PhD-level engineers outside Silicon Valley — elite consumer demographic
No state income tax on retirement income; low overall tax burden attracts retirees and families
How the Market Has Evolved (2020–2025)
Huntsville's transformation from a mid-size military town to a nationally recognized investment market accelerated dramatically from 2020 to 2025. The U.S. Space Command headquarters selection in 2021 — bringing thousands of federal jobs — was a watershed moment. Combined with Toyota's Mazda-Toyota Manufacturing plant in nearby Limestone County (4,000 direct jobs), Huntsville's employment base expanded faster than its retail infrastructure could keep pace. National NNN tenants rushed to fill the gap: Chick-fil-A, Starbucks, and Dutch Bros opened multiple Huntsville locations from 2021–2024. Cap rates compressed from 6.5–8.0% in 2020 to 5.5–7.25% by 2025, reflecting Huntsville's graduation from a tertiary market to a recognized Emerging investment destination. NNN investors who entered in 2020–2021 have seen substantial appreciation.
Why Invest in Huntsville
- 1Federal defense spending makes Huntsville virtually recession-proof
- 218.5% population growth in 5 years — one of the nation's fastest-growing markets
- 3High-income defense/aerospace workforce creates premium consumer demand
- 4Early-mover advantage: cap rates still significantly above national primary market averages
Recent NNN Activity
"2025 has seen Huntsville NNN transaction volume reach record levels, with new Chick-fil-A and Starbucks drive-thru assets trading at 5.5–6.0% cap rates. Dollar General continues expanding aggressively in Huntsville's suburban fringe markets. The Research Park and Jones Valley corridors are seeing new QSR development at the fastest pace in the market's history."
NNN Snapshot
Cap Rate Range
5.5% - 7.25%
Price Range
$1.4M - $3.5M
Avg Lease Term
12 Years
Unemployment Rate
2.9%
Active NNN Tenants
McDonald'sDollar GeneralStarbucksChick-fil-AAutoZoneBurger KingCVS Pharmacy
Major Employers
Redstone ArsenalNASA Marshall Space Flight CenterBoeingLockheed MartinRaytheonToyota
Find NNN Properties in Huntsville
Our advisors have exclusive, off-market NNN inventory in the Huntsville market right now. Contact us to see what's available before it hits the public market.