In Jackson, Mississippi, developers have seen a move by traditionally Class A and B tenants to suburban office locations in either build-to-suit single tenant buildings or to smaller suburban office parks. Despite the shift over the last several years, the Jackson central business district has stayed strong due to many tenants remaining sold on the downtown market and its strength as a business center, says Bessann Hebert, vice president of development and marketing for Kerioth Corporation in Jackson.

The majority of recent development activity in the Jackson area office sector has been in the mid-city area (Interstate 55 at Meadowbrook to County Line Road) and north into Ridgeland and Madison along Highland Colony Parkway west of I-55. Smaller developments are located along Lakeland Drive and in northeast Ridgeland.

Although recent activity in the Jackson office market does not constitute a mass exodus from downtown, which historically has been Jackson's business center, a significant number of tenants have chosen to set up shop to the north. Residential expansion and new construction to the north has enticed many office tenants, who like the convenience of living close to work, and created a demand for office products north of Jackson in south Madison County, explains Hebert. "Although recent events have put a significant amount of downtown office space on the market, many tenants are still wooed to the north by the attraction of suburban wooded settings far removed from the traffic and parking rates of downtown," she says.

The majority of activity for the foreseeable future is expected to follow the recent trend of development to the north, another project along I-55 and major projects along Highland Colony Parkway. The market could see some activity along Highway 25 in conjunction with upscale retail in that area. "But most exciting would be stimulus in the downtown market, which would most probably result from some new construction project and a long needed revitalization and rehabilitation," notes Hebert.

Anticipation and excitement in the area has centered around the 2001 announcement of the construction of a Nissan plant. "This type of economic activity will bring general market stimulus - good news for all sectors," Hebert comments. "The effect on the Jackson MSMA office market should be positive, of course, but not dramatic."

"Nissan's economic activity doesn't necessarily represent a great influx of new office users, but the activity created for the service sector constitutes a positive market condition. The local demand for office space would come from the continued economic health and growth of the area and the effects those market conditions have on your large office tenants, law offices, financial services, accounting and insurance," adds Hebert.

"The Jackson area has many local developers doing great work in the residential, office, retail, and mixed-use sectors. That expertise, paired with the market size sitting on the cusp of the 500,000 population mark, a number which can typically signal great internal economic combustion, has resulted in few large regional developers having Jackson on their radar," says Hebert. One active developer of note is Aronov, which has recently broken ground on an open air lifestyle center on Jackson's east side.

Bessann E. Hebert is vice president, development and marketing with Kerioth Corporation.


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