Photo by Jon Anderson
The office tower next to the Riverchase Galleria, called The Offices at 3000 Riverchase, is for sale for $20 million.
The office tower connected to the Riverchase Galleria, called The Offices at 3000 Riverchase, is up for sale, listed at $20 million, said Alan Paquette, the manager of the tower.
The building, built in 1986, has 14 occupiable floors, four of which are completely empty, said Paquette, who is vice president of property management for Jim Wilson & Associates, which owns the building. There are 277,000 square feet of occupiable space, and that space is 52% occupied, he said.
Jim Wilson & Associates has decided to sell the building because the Montgomery-based company is going to begin focusing more on development than management, Paquette said.
However, it’s always possible those plans could change if the right opportunity presents itself in connection with the redevelopment of the Riverchase Galleria, he said.
While The Offices at 3000 Riverchase are in a location with good access to interstates and amenities such as shopping and restaurants, the office market has been on hard times as of late.
“We have probably over 600,000 square feet of vacant office space in Hoover,” Paquette said. “That’s just unimaginable, and it’s never going to be filled.”
Some of that will be repurposed, such as one of the former Regions bank buildings in Riverchase being repurposed for medical usage, Paquette said. Other office buildings could be converted for residential use, but some are likely to be torn down, he said.
“We need that inventory to compress so that the demand and the inventory are more aligned,” Paquette said. “The products are good. The Galleria tower is a good product. There’s no demand.”
More people are working from home these days, and corporate headquarters are not coming to the Birmingham area, Paquette said. The last corporate headquarters to move into the Birmingham market was Walter Energy in 2011, he said. That company went bankrupt in 2015.
“The Birmingham market as a whole is not attracting companies to move their headquarters or develop their headquarters here,” Paquette said. “We have to do a better job, I think, on economic development of attracting companies to call the greater Birmingham area, and specifically Hoover, their home.”
A company called Jones Lang LaSalle Americas is handling the sale of The Offices at 3000 Riverchase. See here for more.
