Industrial developers in Jacksonville, Florida, are dusting off their plans and getting ready to go when the momentum shifts. “However, I do not see more than planning of any speculative development in the foreseeable future,” says Gary Marcy, vice president of industrial properties with CB Richard Ellis. “The market is pretty stable right now and any influx of new speculative development could really move the market into an unbalanced situation.”

The majority of industrial warehouse and distribution development is located in Jacksonville’s Westside and Northside submarkets, according to Shaffer. “These markets provide the quickest access to the major interstates that run east/west and north/south along with their close proximity to airports, deep-water seaports and rail hubs,” he explains. “In addition, the large acreage necessary for these developments is located in these markets.”

One significant development north of the city is NorthPoint Industrial Park, which allows for the development of 3 million square feet of industrial product. “Built by Pattillo Construction Company, NorthPoint will provide fully permitted sites from 10 to 150 acres for lease or purchase and speculative space and build-to-suit opportunities for large users,” notes Richard Shaffer, senior information management coordinator with CB Richard Ellis.

Marcy notes that while there are no new players in the speculative arena, Castro-Benson Development recently entered the market with the 500,000-square-foot BJs Wholesale Club distribution center. Additionally, Opus also entered the market with a 400,000-square-foot ConAgra distribution center.

Recent major leases include:

• Bowden Distribution Center – Witex, 35,500 square feet
• University Boulevard – Pioneer Metal, 63,000 square feet
• Westside Distribution Center – Unidare Corporation, 72,000 square feet
• Bowden Commerce Center – Mohawk Industries, 19,200 square feet
• Salisbury Business Park – Oracle, 48,000-square-foot expansion
• Flagler Center – Gardner, Inc., 50,400 square feet
• 227 Gun Club Rd. – Kaman Aerospace, 134,000 square feet
• 6630 Broadway Ave. – C.F. Gomma, 160,000 square feet
• Imeson Park – Amware Logistics, 245,000 square feet
• Jacksonville International Tradeport – Hilti USA, 20,150 square feet

In Westside Industrial Park, several leases have been signed:
• Reliable Automotive, 61,094 square feet
• Henry Schein, 75,000-square-foot expansion
• AAR, 40,000 square feet
• BMW, 140,000 square feet
• Benco Dental, 44,000 square feet
• HCA, Inc., 48,000 square feet
• JanPak, 10,000 square feet
• Blue Cross Blue Shield, 73,600 square feet
• Sysco Foods, 61,155 square feet

The average asking lease rate for manufacturing space in the Jacksonville area is $2.92 per square foot; warehouse/distribution, $3.35 per square foot; and flex product, $6.65 per square foot. “The lease rates have increased slightly from the same period last year and have remained stable over the last several years,” says Shaffer.

The vacancy rate for buildings of 10,000 square feet and greater is 8.75 percent; for buildings 100,000 square feet and greater, the vacancy rate is 15.36 percent. Broken down by sector, vacancy rates for industrial properties are spread across a wide range: manufacturing, 3.84 percent; warehouse/ distribution, 10.02 percent; and flex product, 14.88 percent.

“The Jacksonville industrial market’s strategic geographic location makes it the center of the Western Hemisphere, providing faster and more efficient access to both the domestic and international markets,” says Shaffer. The market is within 600 miles or an 8-hour drive of two-thirds of the southeastern United States. Jacksonville’s industrial market boasts extensive intermodal capabilities provided through land, air, sea and rail.

Richard Shaffer is senior information management coordinator, and Gary Marcy, SIOR, is vice president, industrial properties with CB Richard Ellis.


©2003 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.