Commercial Real Estate Market in Florence, AL
Updated monthly: sale, lease, property records, location trend, and more… · Last update: August 31
220 active listings and 1,457 off-market properties in Florence, AL. Commercial property asks $122/SF to buy and $14.99/SF/Yr to lease.
Market Trends
Florence, AL spans 305.1 square miles in Lauderdale County, Alabama. Figures below refresh monthly; last updated 31 August 2026.
Office
Office vacancy in Florence, AL runs 20.2% across the South region in 2025, up from 14.4% in 2019.
Vacancy Rate % in South region
Retail
Retail vacancy in Florence, AL runs 5.4% across the South region in 2025, down from 7% in 2020.
Vacancy Rate % in South region
Industrial
Industrial vacancy in Florence, AL runs 7.9% across the South region in 2025, up from 6% in 2019. Nearly 2.3x the 2022 low of 3.5%.
Vacancy Rate % in South region
Multifamily
Multifamily vacancy in Florence, AL runs 11.3% across the South region in 2025, up from 8.5% in 2022.
Vacancy Rate % in South region
Zoning & Land Use
Land Use Mix share of zoned land by category
- Residential 55.8%
- Commercial 27.3%
- Industrial 9.2%
- Agricultural 6.8%
- Planned_development 0.3%
Largest Zones share of zoned land by district
Single Family Residence Conventional Lots
Single Family Residence Small Lots
Light Industry
Floodway Agricultural Recreational
General Business
Florence, AL zones 18,336 acres across 14 districts. Commercial zoning covers 27.3% of zoned land, residential 55.8% and industrial 9.2%. The largest single district is Single Family Residence Conventional Lots at 53.2%. For commercial buyers the practical constraint is that only 36.5% of land carries a commercial or industrial designation.
Single Family Residence Conventional Lots (R-1)
R-1 districts: single-family residence districts/conventional lots. These districts are composed mainly of areas containing single-family dwellings and open areas where such residential development seems likely to occur. The district regulations are designed to protect the residential character of the district by prohibiting all commercial activities and to…
Market overview
Demographics & Economy
Florence, AL has 65,123 residents in 31,359 households. Density runs 213 people per square mile. Median household income here is $55,822 and median gross rent $808 a month.
65,123
Population
31,359
Households
2.1
Avg Household Size
40
Median Age
28%
College-Educated
89%
High-School Grad
305.1 sq mi
ZIP Area
213
Density / Sq Mi
$55,822
Median Household Income
$33,672
Median Earnings
$808
Median Rent
$179,686
Median Home Value
Tools
Lease vs Buy Breakeven
At $14.99/SF/Yr lease vs $122/SF buy → buying wins if held > 1 years.
At a 12.3% gross asking yield the payback reads short relative to leasing. Assumes 30% down at 6.5% fixed, 2% a year in taxes and upkeep, 3% appreciation, 5% opportunity cost, 2% closing plus 5% selling costs, and a 3% annual rent escalator.
Nearby Markets
| Market | Average Sale Price, $/SF | Average Lease Price, $/SF/Yr |
|---|---|---|
| Saint Florian | — | — |
| Sheffield | — | — |
| Muscle Shoals | — | — |
| Killen | — | — |
Commercial property in Florence, AL asks $122/SF.
Frequently Asked Questions
What is the average price per square foot for commercial property in Florence?
Commercial property in Florence, AL asks an average of $122 per square foot. The 6 most recent recorded sales traded at a median of $149/SF.
How much does it cost to lease commercial space in Florence?
Asking lease rates in Florence, AL average $14.99 per square foot per year.
Is it cheaper to lease or buy commercial space in Florence?
Buying beats leasing in Florence, AL if the property is held longer than 1.0 years, comparing $14.99/SF/Yr asking rent with $122/SF asking price. The model assumes 30% down at 6.5% fixed, 2% of value per year in taxes and upkeep, 3% appreciation, 5% opportunity cost on the cash and a 3% annual rent escalator.
What zoning applies to commercial property in Florence?
Florence, AL zones 18,336 acres across 14 districts, of which 27.3% is commercial and 9.2% industrial. The largest single district is Single Family Residence Conventional Lots at 53.2% of zoned land. R-1 districts: single-family residence districts/conventional lots. These districts are composed mainly of areas containing single-family dwellings and open areas where such residential development seems likely to occur. The district regulations are designed to protect the residential character of the district by prohibiting all commercial activities and to… Residential zoning covers 55.8% and open space 0%.
Where does Realmo's Florence market data come from?
Realmo compiles Florence, AL figures from 6 recent recorded sales, 194 active sale listings, 26 active lease listings, 1,457 tracked off-market properties, the current Florence zoning release. Sale and lease figures refresh monthly; vacancy annually. Last updated 31 August 2026.
Methodology & data sources
- Asking prices and averages
- Computed from 194 active for-sale and 26 active for-lease listings in Florence, AL. These are ASKING figures from live listings, not closed-transaction prices, and a segment carried by a handful of listings reads as indicative rather than an average.
- Vacancy rates
- Published per-sector market series, taken at the metro level where one exists and otherwise at the Census-region level — a chart reading "in <region> region" is a regional number, not this city's.
- Zoning and land use
- The current municipal zoning release: 18,336 zoned acres across 14 districts. Shares are of zoned land, so parcels the release leaves unclassified are excluded from the mix.
- Refresh
- The monthly aggregates close at the end of the previous month, so 31 August 2026 — not today — is the honest last update.
- Known limitations
- office vacancy is reported at South region level, retail vacancy is reported at South region level and industrial vacancy is reported at South region level.
- Coverage
- Metrics below the 10-observation threshold fall back one geographic level. The geography used is named on each figure.
Compiled by the Realmo Data team · reviewed 31 August 2026 · report a data issue
