Metro Jackson is on the front end of the most significant industrial growth in its history, according to Phillip Carpenter, president of Carpenter Properties. Canton, Miss., which is approximately 15 miles north of Jackson, is the location of a new Nissan assembly plant. As a result, there will be demand for space from suppliers and other related vendors.

The majority of industrial growth will be north of Jackson in close proximity to the new Nissan assembly plant. The new Nissan facility is being constructed for assembly of trucks, mini-vans and SUVs that will be equipped with V-8 engines. Nissan' campus will contain approximately 1400 acres. The initial assembly plant will contain 2.5 million square feet and cost $1 billion. It will employ 4,000 workers who will produce 250,000 cars per year. Completion is scheduled for summer 2003.

Rental rates for existing distribution properties range from $3 to $3.50 per square foot, gross. Rates for new distribution space range from $3.50 to $4 per square foot, triple net. Rental rates for existing flex space range from $6.50 to $8.50 per square foot, triple net, and new flex space rental rates range from $8.50 to $10.50, triple net.

The vacancy rate for the central city market is approximately 25 percent. This statistic increased significantly in the last 6 months due to two significant users vacating space, notes Carpenter. Jitney Jungle Stores of America closed its operations and vacated approximately 1 million square feet. Likewise, Fruit of the Loom vacated 600,000 square feet. The vacancy rate for the suburban market is approximately 11 percent.

The two submarkets that show the most growth potential are those along Interstates 55 north and 20 east. The airport is located off of I-20 east and is a natural growth generator. The new Nissan facility is on I-55 north.

"Mississippi' future looks very promising," says Carpenter. "Capturing the Nissan business was a coup for us in and of itself. But, most importantly, a message has been sent that Mississippi has the resources to compete for business on an international platform. Hopefully, other companies that are looking for site locations and may not have considered Mississippi as a potential site in the past will now consider us on their lists as a result of the Nissan transaction."

Phillip Carpenter is president of Carpenter Properties.


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