Commercial Real Estate Market in Montgomery, AL
Updated monthly: sale, lease, property records, location trend, and more… · Last update: August 31
521 active listings and 10,262 off-market properties in Montgomery, AL. Commercial property asks $86/SF to buy and $11.24/SF/Yr to lease.
Market Trends
Montgomery, AL spans 314.6 square miles in Montgomery County, Alabama. Figures below refresh monthly; last updated 31 August 2026.
Office
Office space in Montgomery, AL asks $85/SF to buy. Vacancy runs 20.2% across the South region in 2025, up from 14.4% in 2019.
Average Sale Price $/SF
Listings
Vacancy Rate % in South region
Retail
Retail space in Montgomery, AL asks $130/SF to buy. Vacancy runs 9.8% in 2025, down from 10.9% in 2020. Down from a 2023 peak of 11.6%.
Average Sale Price $/SF
Listings
Vacancy Rate %
Industrial
Industrial vacancy in Montgomery, 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 Montgomery, 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 70.7%
- Industrial 12.5%
- Agricultural 4.7%
- Planned_development 4.6%
- Civic 3.7%
- Commercial 2.9%
- Mixed use 0.7%
- Open space 0%
Largest Zones share of zoned land by district
Residential Agriculture
Flood Hazard District
General Industry
Light Industry
General Agriculture
Montgomery, AL zones 226,879 acres across 61 districts. Commercial zoning covers 2.9% of zoned land, residential 70.7%, open space 0% and industrial 12.5%. The largest single district is Residential Agriculture at 36.3%. For commercial buyers the practical constraint is that only 15.4% of land carries a commercial or industrial designation.
Flood Hazard District (FH)
The purpose of this FH district is to provide areas for the Agriculture, poultry and livestock raising and kennels, together with such single-family dwellings as are occupied by the farm owner or resident farm workers, provided no structure housing animals is located closer than 200 feet to a residential district boundary.
Market overview
Demographics & Economy
Montgomery, AL has 208,767 residents in 97,142 households. Density runs 664 people per square mile. Median household income here is $56,716 and median gross rent $1,066 a month.
208,767
Population
97,142
Households
2.1
Avg Household Size
38
Median Age
33%
College-Educated
89%
High-School Grad
314.6 sq mi
ZIP Area
664
Density / Sq Mi
$56,716
Median Household Income
$36,002
Median Earnings
$1,066
Median Rent
$151,361
Median Home Value
Tools
Lease vs Buy Breakeven
At $11.24/SF/Yr lease vs $86/SF buy → buying wins if held > 0.9 years.
At a 13.1% 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 |
|---|---|---|
| Coosada | — | — |
| Wetumpka | — | — |
| Millbrook | — | — |
| Elmore | — | — |
Commercial property in Montgomery, AL asks $86/SF.
Frequently Asked Questions
What is the average price per square foot for commercial property in Montgomery?
Commercial property in Montgomery, AL asks an average of $86 per square foot. The 3 most recent recorded sales traded at a median of $43/SF, so asking sits 98% above the achieved median. Retail carries the highest asking price at $130/SF.
How much does it cost to lease commercial space in Montgomery?
Asking lease rates in Montgomery, AL average $11.24 per square foot per year.
Is it cheaper to lease or buy commercial space in Montgomery?
Buying beats leasing in Montgomery, AL if the property is held longer than 0.9 years, comparing $11.24/SF/Yr asking rent with $86/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 Montgomery?
Montgomery, AL zones 226,879 acres across 61 districts, of which 2.9% is commercial and 12.5% industrial. The largest single district is Residential Agriculture at 36.3% of zoned land. Residential zoning covers 70.7% and open space 0%.
Where does Realmo's Montgomery market data come from?
Realmo compiles Montgomery, AL figures from 6 recent recorded sales, 411 active sale listings, 110 active lease listings, 10,262 tracked off-market properties, the current Montgomery zoning release. Sale and lease figures refresh monthly; vacancy annually. Last updated 31 August 2026.
Methodology & data sources
- Asking prices and averages
- Computed from 411 active for-sale and 110 active for-lease listings in Montgomery, 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: 226,879 zoned acres across 61 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, industrial vacancy is reported at South region level and multifamily 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
