Commercial Real Estate Market in Madison, AL
Updated monthly: sale, lease, property records, location trend, and more… · Last update: August 31
182 active listings and 1,614 off-market properties in Madison, AL. Commercial property asks $175/SF to buy and $14.31/SF/Yr to lease.
Market Trends
Madison, AL spans 119.1 square miles in Limestone County, Alabama. Figures below refresh monthly; last updated 31 August 2026.
Office
Office vacancy in Madison, AL runs 20.2% across the South region in 2025, up from 14.4% in 2019.
Vacancy Rate % in South region
Retail
Retail space in Madison, AL asks $127/SF to buy. Vacancy runs 5.4% across the South region in 2025, down from 7% in 2020.
Average Sale Price $/SF
Listings
Vacancy Rate % in South region
Industrial
Industrial vacancy in Madison, 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 Madison, 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 59.9%
- Agricultural 16.8%
- Commercial 10%
- Industrial 8.1%
- Planned_development 2.3%
- Civic 1.9%
- Mixed use 0.7%
Largest Zones share of zoned land by district
Medium Density Residential District
Low Density Residential District
Agriculture District
Single Family Detached Residential District
Restricted Industrial District
Madison, AL zones 19,748 acres across 21 districts. Commercial zoning covers 10% of zoned land, residential 59.9% and industrial 8.1%. The largest single district is Medium Density Residential District at 17.7%. For commercial buyers the practical constraint is that only 18.1% of land carries a commercial or industrial designation.
Agriculture District (AG)
Rural and Transitional R-1, AG Park and Natural Areas All All Section 5-2. Planned Unit Development Districts; Limited Although a category of Planned Unit Development (PUD) has not been included in the district list in Section 5-3 or described in Sections 5-4 or 5-5, existing PUDs developed and maintained according to their site-specific development plans ar…
Market overview
Demographics & Economy
Madison, AL has 88,132 residents in 36,320 households. Density runs 740 people per square mile. Median household income here is $118,790 and median gross rent $1,474 a month.
88,132
Population
36,320
Households
2.4
Avg Household Size
37
Median Age
61%
College-Educated
97%
High-School Grad
119.1 sq mi
ZIP Area
740
Density / Sq Mi
$118,790
Median Household Income
$63,787
Median Earnings
$1,474
Median Rent
$333,030
Median Home Value
Tools
Lease vs Buy Breakeven
At $14.31/SF/Yr lease vs $175/SF buy → buying wins if held > 2.1 years.
At a 8.2% 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 |
|---|---|---|
| Triana | — | — |
| Capshaw | — | — |
| Belle Mina | — | — |
| Mooresville | — | — |
Commercial property in Madison, AL asks $175/SF.
Frequently Asked Questions
What is the average price per square foot for commercial property in Madison?
Commercial property in Madison, AL asks an average of $175 per square foot. The 7 most recent recorded sales traded at a median of $256/SF. Retail carries the highest asking price at $127/SF.
How much does it cost to lease commercial space in Madison?
Asking lease rates in Madison, AL average $14.31 per square foot per year.
Is it cheaper to lease or buy commercial space in Madison?
Buying beats leasing in Madison, AL if the property is held longer than 2.1 years, comparing $14.31/SF/Yr asking rent with $175/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 Madison?
Madison, AL zones 19,748 acres across 21 districts, of which 10% is commercial and 8.1% industrial. The largest single district is Medium Density Residential District at 17.7% of zoned land. Residential zoning covers 59.9% and open space 0%.
Where does Realmo's Madison market data come from?
Realmo compiles Madison, AL figures from 8 recent recorded sales, 136 active sale listings, 46 active lease listings, 1,614 tracked off-market properties, the current Madison zoning release. Sale and lease figures refresh monthly; vacancy annually. Last updated 31 August 2026.
Methodology & data sources
- Asking prices and averages
- Computed from 136 active for-sale and 46 active for-lease listings in Madison, 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: 19,748 zoned acres across 21 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
