From recent studies, the Jacksonville Industrial Market is at a historically low vacancy rate. The availability of functional industrial space in Jacksonville continues to decline rapidly. Additionally, developers are currently not building speculative facilities. Asking rental rates continue to rise as the available space declines. The lack of availability will only drive rates higher in the near future and will continue to push tenants to other sub-markets.
Overall, Jacksonville’s Market is very healthy when compared nationally. U.S. vacancy rate held steady at 5.5% and demand continues to climb for more space. We expect more developers to break into Jacksonville soon as the city continues to grow at an exponential rate.
Leases and Sales
Large 3rd quarter leases include Grimes Logistics leasing an additional 117,000 SF at the Northport Logistics Center. They currently lease 566,000 SF in the facility. Newmark Phoenix Realty Group’s Dan Stover, John Richardson and Bryan Bartlett represented the ownership in the transaction. Veritiv Company leased 112,600 SF in the Westside Industrial Park. Topaz lighting made a move from the Westside to the Northside, leasing 89,600 SF at 780 Whittaker Road. Additionally, MODRoto leased 50,000 on Ellis Road. Newmark Phoenix Realty Group’s John Richardson and Bryan Bartlett represented the ownership in the transaction.
Large 3rd quarter sales include Creekside Distribution, LLC’s sale of a three-building 336,566 SF portfolio on Alvarez Road to Colfin Industrial for $24,050,000. IC Industrial Management sold a 283,301 SF facility to IC Industrial REIT for $11,340,000. The Ohio-based Mid-America Management Corporation sold their three-building Florida portfolio to Eisenberg Investments for $7,430,000. Clarion Partners sold a 203,640 SF single asset to a Beast Holdings, LLC for $5,388,000. Newmark Phoenix Realty Group’s John Richardson and Bryan Bartlett represented Clarion Partners in the sale.
Link to Industrial Market Report: