Birmingham’s tallest building in possible financial trouble

BIRMINGHAM, Ala. ( WIAT ) — Birmingham’s tallest building is in possible financial trouble, the CEO of REV Birmingham says the building’s owners have entered it into a receivership.

The news about the Shipt Tower has some in downtown Birmingham concerned. David Fleming, the CEO of REV Birmingham, a non-profit whose mission is to revitalize the city, says that people shouldn’t worry.

“The Shipt Tower facing things that many office buildings all across the country and downtown groups are facing, is what is the future of office, and office need and office demand,” said Fleming.

According to REV Birmingham, since the pandemic remote work has increased. Even with less people coming to the office, downtown Birmingham has remained healthy. Class A building’s, like Shipt tower, are currently at 81% occupancy rate.

“When we look at the national average, post Covid, downtown Birmingham is fairing better than the national average. In terms of recovery from that big event, we have some good fundamentals,” remarked Fleming.

Clark Alexander runs Gus’s Hotdogs, a business that has been downtown since 1947. He says with all the positives coming to Birmingham, the Shipt tower news doesn’t worry him.

“There too many things coming, there to many opportunities coming, there’s so many different businesses coming,” commented Alexander.

REV Birmingham says they are about to begin a study of downtown to find ways that the city can increase occupancy and the quality of the area.

“So that we can actually see what are the best opportunities for Birmingham going forward,” added Fleming.

A spokesperson for Shipt, the anchor company of the Shipt tower, told CBS 42 because of their lease agreement they can’t comment on the building or the receivership, but did say the company is committed to Birmingham and its employees that live here.

For the latest news, weather, sports, and streaming video, head to CBS 42.