SOUTHEAST SNAPSHOT, FEBRUARY 2008

Jacksonville Retail Market

Jacksonville’s robust economy has continued to foster population growth in Northeast Florida and is developing a healthy retail environment. Impressive rent gains, local job growth, low unemployment and an estimated 5.4 percent growth in retail sales continue to keep Jacksonville in the spotlight.

Many new projects came online last year, including additions to existing centers. Phase II @ St. Johns Town Center, located on the Southside, is a joint venture project between Simon and Ben Carter Properties that adds 228,000 square feet to the existing 1.1 million-square-foot community/lifestyle center. New retailers include Urban Outfitters, Tommy Bahama, Capital Grille, Louis Vuitton, and Mitchell’s Fish Market. Ben Carter Properties has already announced plans for a Phase III expansion, opening in 2010.

Also, River City Marketplace is a new 1.3 million-square-foot community/lifestyle center located on the Northside of Jacksonville. This area has been underserved for years and Ramco Gershenson’s commitment has paid big dividends for the community. Anchors Wal-Mart, Lowe’s Home Improvement Warehouse and Hollywood Theatres, were joined by Gander Mountain on the tenant roster.

OakLeaf Town Center, developed by the Sembler Company, is an 866,000-square-foot community/lifestyle center located on the Westside. The project is anchored by The Home Depot, Super Target and Kohl’s.

Kimco has opened two new projects. Pablo Creek East, located on Jacksonville’s Southside, is a 277,000-square-foot center with Super Target, Michael’s and Office Max as anchors. Plantation Plaza is a 344,000-square-foot-center in Orange Park and is anchored by The Home Depot. Hodges Point Plaza II, developed by Jacksonville-based Sleiman Enterprises is located on the Southside of Jacksonville. The 325,000-square-foot project is anchored by a Wal-Mart Super Center and Beall’s Department store.

New projects on the horizon include Kimco’s Avenues Walk, a 600,000-square-foot mixed-use retail project, including 400 hotel rooms and 1,050 residential units. Lion’s Gate at World Commerce Center, developed by Weingarten Realty, is a 750,000-square-foot community/lifestyle center located just south of Jacksonville slated to open in 2009. Finally, The Markets @ Town Center, developed by Pinehill Development Company, is a $75 million, 325,000-square-foot project located adjacent to St. John’s Town Center. This project is expected to open in the fourth quarter of this year. All three developers are currently negotiating with anchor tenants and specialty retailers.

Mandarin Landing Shopping Center is under redevelopment, with the area’s first Whole Foods grocery store as its anchor. The project is slated to open this year. Look for more value-added opportunities to unfold as older projects are reinvented.

With the pending completion of the Interstate 295 loop providing a complete beltway around the city of Jacksonville, traffic patterns have dramatically improved.

— Duke Addison is president of Jacksonville, Florida-based Addison Commercial Real Estate, Inc./TCN Worldwide.

©2008 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.