Local Industrial Rents Have Grown by Almost 8% in the Past Year!
After besting the nation in 2019, rent growth in the Jacksonville industrial market continues to lead the pack early in 2020.
The 7.9% rent growth seen over the past 12 months is more than 300 basis points stronger than the national average. Rent mobility over that time was aided by the high levels of industrial demand in Jacksonville. The market is well-placed along Interstate 95, and Jacksonville Port serviced nearly 11 tons of cargo in 2019 and is being deepened to allow for larger ships in the future.
The market's vacancy rate is below 5% following a steep compression. In fact, market vacancy only recently increased after spending two years at 20-year lows.
The recent increase in vacancy comes as a result of decade-high deliveries in 2019. About 6 million square feet of new industrial space has been built across Jacksonville since the start of 2019, but much of it has been build-to-suit projects, like Wayfair’s 1 million-square-foot distribution center in Riverside. Significant preleasing was also seen across the industrial market, including Cra-Z-Art’s 300,000-square-foot deal at Imeson Industrial Park, a 272,000-square-foot lease by Winsupply at Westside Industrial Park and ULTA’s 203,000-square-foot deal at Park 295 Industrial Park.
This construction and leasing activity has been focused on the West Side, North Side, Ocean Way and Riverside submarkets, generally located to the north and west of downtown Jacksonville. These areas have posted the most growth in the market, averaging more than 7% annually over the past five years.
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