Substantial build-out requirements by tenants for industrial properties are keeping developers busy in the Southside submarket of Jacksonville, according to Gary Marcy, vice president of CB Richard Ellis. A new interchange that has been funded for Interstate 95 and St. Augustine Road will make this area extremely attractive for distribution centers moving freight south. In the Northwest submarket, more high-cube space is being developed.

Developments of note include projects by companies that are new to the Jacksonville area. The Pizzuti Companies of Columbus, Ohio, is developing Perimeter West Industrial Park, a project that will provide a new quality option for Northwest quadrant distribution entities, says Marcy. Bowden Commerce Center is a joint venture between Dallas-based Trammel Crow Co. and J.P. Morgan that will offer an economically priced option on the Southside. The majority of industrial development, however, is taking place in the Northwest quadrant because land cost is at least half as expensive as in the Southside submarket and is reflected in the asking lease rates, he adds.

On the Southside, developers are trying to attract telecommunication tenants because of the large amount of build-out. However, credit is always a concern with new ventures, Marcy says. In the Northwest submarket, manufacturing tenants are being sought because of higher paying jobs and the extremely high cost for them to relocate once they occupy the space. Currently, third-party logistics companies are absorbing a lot of space in the Northwest quadrant.

Several leases have been signed recently: Industrial Cold Storage leased 283,000 square feet on Wells Road in Orange Park; on Suemac Road, a 180,000-square-foot lease was signed by Grimes Distribution; Wave Telecommunication leased 65,000 square feet in Salisbury Business Park; and in Westside Industrial Park, Mohawk leased 60,000 square feet.

The range for rental rates is $2.75 to $5 per square foot triple net for shell space, says Marcy. Vacancy rates are at 4.05 percent.

Gary Marcy is vice president of CB Richard Ellis in Jacksonville, Florida.


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