The Golden Age of Mobile

Multiple developments on both sides of the bay build momentum.

by Pratt Thomas

Location, Location, Location. This beloved real estate mantra has rung true for centuries. The indigenous people followed by the European settlers recognized the strategic location and natural resources of Mobile and Baldwin County. Mobile’s position along the Mobile River and its proximity to the Gulf of Mexico have long made the area desirable for trade and commerce. The citizens of the two counties are now witnessing a surge in significant economic development projects that promise to reshape the region’s commercial real estate landscape and bolster the region’s economic resilience. A myriad of development has swept across the two counties. From infrastructure improvements to expansive industrial projects, these initiatives highlight a collaborative effort between public and private sectors to enhance local opportunities. Here, we’ll highlight some of the projects that are shaping our region’s future.

Infrastructure projects facilitate trade, attract investment, support business growth, improve quality of life, encourage regional development and enhance connectivity. Several significant infrastructure improvements are underway. Leading the way is a recent $550-million federal grant awarded for the Mobile River Bridge and Bayway project. This funding will be combined with an earlier federal grant of $125 million and a $250-million state grant to help construct the estimated $3.5-billion new cable-stayed bridge over the Mobile River, expected to commence construction in 2025.

The new Mobile International Airport, a $414-million investment, is scheduled to be completed November/December 2025 and placed into service in early 2026 when all commercial air service will transition from the Mobile Regional Airport.

With more than $1.5 billion invested in the ship channel and terminal, the ongoing deepening and widening project of the Port of Mobile will deepen the Mobile ship channel to 50 feet by mid-2025, making it the deepest container terminal along the Gulf of Mexico. The Alabama Port Authority says the deepening and widening project positions the Port of Mobile to become the top container terminal on the Gulf of Mexico. At the APM Container Terminal, in its Phase IV expansion, an investment of $104 million will expand its capacity to one million TEUs (20- foot equivalent cargo container units). The expansion will allow the terminal to manage cargo containers from larger ships and add approximately 80 new jobs.

Amtrak passenger rail construction commenced on a new layover track and platform restoring Amtrak passenger rail service between New Orleans and Mobile. Once completed, the new rail service will offer convenient commuting options between Mobile and New Orleans, providing opportunities for workers and families to connect across cities. The project is being facilitated by $174 million in railroad improvements from the Consolidated Rail Infrastructure and Safety Improvements (CRISI) grant program of the Federal Railroad Administration.

Among the industrial and manufacturing sectors, Airbus continues to be the region’s shining star. Construction is underway on an additional 1 million square feet of space to Airbus’ facility, effectively doubling the aircraft plant’s production area. The capital investment of $150 million brings Airbus’ total investment in Mobile to over $1 billion. The plans include more than a dozen new structures that will effectively double the aircraft plant’s production area. Airbus is targeting the third quarter of 2025 for completion of the expansion project.

In Bayou La Batre, Birdon shipyard is expected to create 136 new jobs over the next three years, bringing the facility workforce to more than 200 employees. This expansion follows Birdon’s acquisition of the Bayou La Batre shipyard on March 1, 2024, as part of its efforts to support the U.S. Coast Guard with the next generation of Inland Buoy Tenders, known as Waterways Commerce Cutters (WCC). Birdon was awarded a $1.187-billion contract in 2022 to design and build 27 WCCs over a 10-year period.

South Alabama Logistics Park (SALP) was the first major distribution center in the region. Boasting more than 1,300 acres for development, and 6 million square feet in Phase I, SALP is the South’s largest logistics park. The development of this site has been a case study and paved the way for many other recently announced distribution projects.

RailPort Logistics near Rabbit Creek will create more than 1,000 new, high-paying jobs and $600 million in capital expenditure associated with an industrial warehouse development that will allow for 5 million square feet at full buildout over the next five to 10 years. It will be one of only a handful of Class A industrial sites served by a CSX rail line. The project broke ground in October and will create modern distribution warehousing operations to support logistics and light manufacturing operations.

In the hotel and leisure sector, River Walk Plaza is a mixed-use development approved by the Mobile City Council. The Plaza will feature a luxury hotel, condominiums, office space and a variety of dining and retail options, all aimed at revitalizing the riverfront and attracting both residents and tourists.

Construction of the University of South Alabama’s new Frederick P. Whiddon College of Medicine building continues. The $200-million facility will allow the university to graduate additional physicians and enhance research and innovation. Construction is scheduled to be completed by December 2026. This facility will continue to support the significant healthcare employment in Mobile.

In Baldwin County, the Port Alabama Industrial Center celebrated its Phase 1 groundbreaking, aiming to provide 2 million square feet of industrial space to meet rising demand. The project is master planned to provide up to 12 million square feet.

Additionally, Novelis is developing a massive aluminum manufacturing plant in Bay Minette, with costs of $4.1 billion, further emphasizing the region’s industrial growth potential. Novelis, an aluminum solutions provider and the world leader in aluminum rolling and recycling, is under construction and updated its projected capital expenditure for the plant at the South Alabama Megasite in Bay Minette from $2.5 billion to $4.1 billion. The plant will be the first fully integrated aluminum mill built in the U.S. in 40 years. The company is filling vacancy left by Standard Furniture that ceased its Bay Minette manufacturing operations in 2019. Novelis has leased more than 540,000 square feet of warehouse space formerly occupied by Standard.

In Gulf Shores, Embassy Suites, a $140-million development, is under construction. The eight-story property will have 257 all-suite beachfront guestrooms; a lobby bar and restaurant; a rooftop amenity terrace inclusive of a bar and grill, pool deck and an outdoor entertainment venue; and 13,620 square feet of enclosed meeting and pre-function space, including a 7,800-square-foot ballroom. The resort will also have a three-story parking garage and 7,618 square feet of leasable retail space that will include a Starbucks.

Margaritaville Resort in Orange Beach, on more than 70 acres along the shores of the Intra-Coastal Waterway, is set to break ground Waterfront District and the first phase of the resort opening in 2027. The full resort is set to be complete by spring of 2029 with an approximate budget of $200 million.

“We’re in the Golden Age of Mobile”

With these multifaceted projects, Mobile and Baldwin County are poised for substantial economic growth, setting the stage for a vibrant future characterized by innovation, job creation and improved quality of life for residents. The collaborative efforts between local leaders and businesses reflect a shared vision for sustainable development and a commitment to harnessing the region’s potential.

Pratt Thomas is the president of Merrill P Thomas Co., Inc. and is a distinguished professional with more than 20 years’ experience in the real estate, banking and construction industries. His career is marked by a proactive approach and a results-driven mindset, coupled with extensive expertise in development, brokerage services and property management.