industrial market survey | jacksonville rates fell by almost one-third vs. 2009 (18.5 % vs. 12.4 %),...

2010

I N D U S T R I A L M A R K E T S U R V E Y | J A C K S O N V I L L E

YEAR-END

J A C K S O N V I L L E REAL ESTATE MARKET OVERVIEW

[ MARKET TOTALS ]

A generally positive trend in 2010 indicators points to a slow, varying recovery for the Jacksonville Metropolitan

Area (MSA) industrial sector. Vacancy rates fell by almost one-third vs. 2009 (18.5 % vs. 12.4 %), while overall

absorption stabilized after a dismal 2009, showing clear signs of increased business activity and expansion.

2010

Overall Market

S I G N I F I C A N T 2 0 1 0 L E A S E S

PROJECT NAME LOCATION SIZE TENANT SUBMARKET

WESTLAKE/N . S . PRITCHARD ROAD 240,000 SF PENSER SC WESTSIDE

FORMER WINN-DIXIE WAREHOUSE COMMONWEALTH AVE 553,151 SF FOOTBALL FANATICS WESTSIDE

WESTSIDE INDUSTRIAL PARK BULLS BAY HIGHWAY 250,000 SF FALKEN TIRES WESTSIDE

NORTHPOINT INDUSTRIAL PARK PORT JACKSONVILLE PARKWAY 96,000 SF APR ENERGY NORTHSIDE

NORTHPOINT INDUSTRIAL PARK PORT JACKSONVILLE PARKWAY 70,020 SF CROWLEY NORTHSIDE

S I G N I F I C A N T 2 0 1 0 S A L E S

BUILDING BUYER SIZE PURCHASE PRICE SUBMARKET

600 WHITTAKER ROAD USA A REAL ESTATE CO. 474 , 579 SF $18 ,900,000 NORTHSIDE

3660 DEERPARK BLVDCB RICHARD

ELLIS INVESTORS347,144 SF $15 ,750,000

ST. JOHNS COUNT Y

6830 HIGHWAY AVEAND 6831 STUART AVE

PAUL AND ELEANOR SADE

REVOCABLE TRUST245 ,174 SF $10,650,000 WESTSIDE

3050 MELSON AVEINSTEEL WIRE

PRODUCTS COMPANY157,156 SF $2,7 1 1 , 268 WESTSIDE

8831 MONCRIEF-DINSMORE ROAD

CONGLOBAL INDUSTRIES 63,082 SF $4,000,000 WESTSIDE

Peter Crolius, [email protected]

550 Water StreetSuite 1225Jacksonville, FL 32202

S I G N I F I C A N T 2 0 1 0 C O N S T R U C T I O N A C T I V I T Y

BUILDING COMPLETION DATE SIZE TENANT SUBMARKET

11001 PRITCHARD ROAD AUGUST 2010 240,000 SF PENSER SC WESTSIDE

S I G N I F I C A N T 2 0 1 0 P R O J E C T S U N D E R C O N S T R U C T I O N / R E N O VAT I O N

BUILDING COMPLETION DATE SIZE TENANT SUBMARKET

WESTSIDE INDUSTRIAL PARK/ FALKEN TIRE BLDG MARCH 2011 250,000 SF FALKEN TIRE WESTSIDE

Information deemed reliable, but not guaranteed.

2

Y E A R E N D 2 0 0 9

TOTAL INVENTORY SF 92 MILLION

VACANCY RATE 18.5%

ABSORPTION (Y-T-D) (2,100,000)

COMPLETED CONSTRUCTION 2,900,000 SF*

* Excludes Build-To-Suits

Y E A R E N D 2 0 1 0

TOTAL INVENTORY SF 92.3 MILLION

VACANCY RATE 12.4%

ABSORPTION (Y-T-D) (34,844)

COMPLETED CONSTRUCTION 268,000 SF

M A J O R L A N D P R O J E C T S1 2 3 4 5 6 7

Land Development/Location

Lem Turner Industrial Park/Lem

Turner Road

Woodwings West/Pecan Park Road @

I-295

Woodwings East/Duval Road @ I-295

Jacksonville North Commerce Park/

NW Quad of I-95 and Pecan Park Road

Jacksonville Interstate Commerce Park/I-95 @ Pecan

Park Road

Pecan Park Distribution Center/

US 17/Pecan Park Road @ I-95

New Berlin Distribution Center

OwnershipNorth JAX

Investment Group, LLC

Jacksonville Aviation Authority (JAA)

Jacksonville Aviation Authority (JAA)

Pecan Park Road Investments, LLC

Benderson Development

Schafer Development Logan Holtz, et. al.

Submarket Northside Northside Northside Northside Northside Northside Northside

Industrial Land Area 500 Acres890 Acres

Mixed-Use/327 Light Industrial

328 Acres Mixed-Use /

300 Light Industrial93 Acres 319 (Ind.) 117 Acres 160 Acres

Total Planned Development (SQ FT)

4.8M SQ FT 3.5M SQ FT 3.5M SQ FT 1M SQ FT 4.6M SQ FT 1.3M SQ FT 2.5M SQ FT

Entitlements

IL Zoning with Fair-Share Agreement and Concurrency In-Place w/City of

Jacksonville

Part of JIA DRI Part of JIA DRI

PUD with Fair-Share Agreement In-Place

w/City of Jacksonville

Zoning/Concurrency In-Place

Zoning/Concurrency In-Place

Fully-entitled w/concurrency

Existing Buildings 0 0 0 0 0 0 0

Rail Service N/A N/A N/A N/A CSX N/A N/A

Planned 2011 Development

None None None None None None None

CommentsUtilities located

1200 feet from the property

Master Plan includes 150 acre golf course

Under J.V. contract with Majestic Development

Site has additional 22 acres for retail/

commercial use

Ownership will sell land or B-T-S

Ownership will sell land or B-T-S

Owners will sell lots, B-T-S, some

speculative development

8 9 10 11 12 13 14

Land Development/Location

Port Jax Trade Center/S@-9A and

Alta Drive

Port Authority Center/3515

Heckscher Drive

Cecil Commerce Center/Cecil

Commerce Center Parkway

Westlake Industrial Park/Pritchard Road

ProLogis/ Pritchard Road

Majestic @ Westlake/ Pritchard Road

Liberty Property Trust @ Imeson Road and Moncrief Road

OwnershipGroup IV

DevelopmentPLANET Five/AllFr8

Logistics, Inc.

Jointly Owned and Administered by

JEDC (11,000 Acres) and JAA (6,000

Acres)

Norfolk Southern Railroad

PrologisMajestic

DevelopmentLiberty Property

Trust

Submarket Northside Northside Westside Westside Westside Westside Westside

Industrial Land Area 31 Acres 26 Acres

17,000 of which 4,000 is commercially developable

1,500 Acres (300 ind.)

95 Acres 14 Acres 118 Acres

Total Planned Development (SQ FT)

475,000 SQ FT 250,000 SQ FT SAFT America: 143,000 SQ FT

(2010)2.17M SQ FT 1,598,875 SQ FT 183,500 SQ FT

1M SQ FT among 6 bldgs 126,000

-166,000

EntitlementsFully-entitled and

Pad-readyN/A DRI Westlake DRI Part of Westlake DRI Westlake DRI

Fully-entitled w/concurrency

Existing Buildings

82,000 fully-occupied B-T-S with W & O, 82,000 spec

warehouse with 57,000 sq ft vacant.

0

Over 30 tenants, including

Bridgestone Tire's recently-completed 1M sq ft warehouse

on 63.3 acres

Unilever (772,200 SQ FT); ING (400,000 SQ FT); Johnson

Development (546,000 SQ FT); BJ's Warehouse

(460,972 SQ FT); JM Family (283,000 SQ

FT); Penser (250,000 SQ FT)

0 0 0

Rail Service N/A CSX CSXNorfolk Southern

RailroadN/A N/A N/A

Planned 2011 Development

70,300 SQ FT 0 0 None None None None

Comments

Owner has up to 6 designed and permit-ready building plans

for end-users.

Planned development

includes a hotel and small-pad retail

North 4,500 Acres Under Master

Developer contract with Hillwood

Investment Properties

Norfolk Southern sells land only; no

vertical development

Phases 1 and 2 include 2-486,400 SQ FT cross-dock

warehouses

2 Buildings Planned: 100,700 SQ FT and

82,500 SQ FT

Flexible development plan includes both large cross-dock

and service-center buildings.

3

M A J O R I N D U S T R I A L P R O J E C T S1 2 3 4 5 6 7 8 9

Project Name/Location

Majestic International Tradeport/

Airport Road and Tradeport

Road

Creekside @ Tradeport/

Alvarez Road

Tradeport Business Park/ Airport Road

and Duval Road

Imeson International

Industrial Park/Heckscher Drive and North Main

Street

Northpoint Industrial Park/ New Berlin and

Faye Roads

Northport Logistics

Center/11530 New Berlin Road

Alta Lakes Commerce

Center/Blasius and Faye Roads

Westlake Industrial Park/ Pritchard Road

Westside Industrial Park/ Pritchard Road West of I-295

OwnershipMajestic

DevelopmentJackson-Shaw

Flagler Development

Webb International

Pattillo Development

OakmontCabot

Properties, Inc.Johnson

DevelopmentPattillo

Development

Submarket Northside Northside Northside Northside Northside Northside Northside Westside Westside

Land Area 47 Acres 26 Acres 93 Acres1,500 Acres. 505 industrial acres

for sale300 Acres 58 Acres 66 Acres 182 Acres 960 Acres

Existing Developer-Owned Inventory

318,000 SQ FT Building and

520,000 SQ FT Building

334,930 among 3 Buildings

1,329,800 among 16

Buildings950,000

672,438 among 6 Bldgs

872,627 1 Building


546,000 1 Building

4,490,000

Total Availability (SQ FT)

120,360240,605 in 2 bldgs: 94,325 and 146,280


280,000390,200 among

4 Buildings872,627 518,243 0


Current Vacancy

14% 72% 11% 29% 58% 100% 91% 0% 20%

Largest Contiguous (SQ FT)

120,360 146,280 73,234 280,000 186,650 872,627 192,248 0 168,000

Planned for Delivery Within 12 Months

0 0 0 0 0 0 0 0 0

Quoted Rates (PSF)

$4.25 $4.75 $4.25 NNN$3.25 - $4.50

NNN$3.00 - $5.00

NNN$4.25 $4.75

$3.00 - $4.00 NNN

$3.00 - $4.25 NNN

Clear Height 32’ 28’ 24’ - 30’ 23’ - 30’ 30’ 32’ 28’ 32’ 24’ - 30’

Truck Court 140’ 115’ 115’ - 150’ 130’ 180’ 135’ - 145’ 120’ - 185’ 150’ 150’ - 180’

Potential Additional Developable Building Area

0 0Approximately 350,000 SQ FT

Up to 18M SQ FT 2.65M SQ FT 0 300,000 SQ FT221,000 SQ FT

(1 building planned)

Approximately 5M SQ FT

Rail Service N/A N/A N/A CSX N/A N/A N/A N/A N/A

10 11 12 13 14 15 16 17 18

Project Name/Location

Perimeter West Industrial

Park/ I-295 and Pritchard Road

Crossroads Distribution

Center/6600 Pritchard Road

Westside Dist. Center/ N. Ellis Road

Bowden Commerce

Center/ Salisbury Road

Center Point/U.S. 1

Salisbury Business Park/7251

Salisbury Road

Interstate Distribution Center/8475 Western Way

Lakepointe Business Park/Western Way

First Coast Distribution

Center/SR 207 at I-95 St. Johns

County

Ownership ING ClarionRepublic

DevelopmentEastgroup

Properties, Inc.Sealy &

CompanyLiberty Property

TrustLiberty Property

TrustEastgroup

Properties, Inc.EastGroup

Fountain Partners

Submarket Westside Westside Westside Southside Southside Southside Southside Southside Southside

Land Area 75 Acres 129 Acres 18 Acres 55 Acres 71 Acres 25 Acres 11 Acres 29 Acres 80 Acres

Existing Developer-Owned Inventory

260,000 Existing

Volkswagen B-T-S

126,056 (Building #2)

425,240 3 Buildings

leased

105,420/ 2 Buildings





203,000

Total Availability (SQ FT)

0 126,056 0 38,500161,100 among 8

Buildings34,222 0 103,557 48,000

Current Vacancy

0% 0% 0% 37% 26% 27% 0% 28% 24%

Largest Contiguous (SQ FT)

N/A 126,056 0 38,500 42,000 19,490 N/A 78,425 48,000

Planned for Delivery Within 12 Months

174,460 0 0 0 0 0 0 0 0

Quoted Rates (PSF)

$5.25 $4.75 $3.00 $6.50 $4.00 - $7.00 $5.50 - $6.50 $4.50 $3.25 - $6.50 $4.50

Clear Height 30’ 30’ 32’ - 36’ 24’ 20’ 22’ 24’ 16’ - 22’ 32’

Truck Court 110’ - 115’ 100’ 125’ 150’ 100’ - 120’ 130’ 110’ 100’ 130’

Potential Additional Developable Building Area

Cross-Dock Design 139,400

and 195,000 planned 2 add’l

bldgs

550,000 SQ FT, 3 Additional

Buildings Planned Ranging from 100,000 - 300,000 SQ FT

0

Additional 7.5 acres available. Up to 85,000

additional sq ft. Part of a total 490,000 sq ft mixed-use development.

0

179,000 SQ FT consisting of 2 Buildings:

91,000 and 68,000 SQ FT

0 0 800,000

Rail Service N/A N/A CSX N/A N/A N/A N/A N/A N/A

4

N O R T H S I D EJ A C K S O N V I L L E , F L O R I D A

— M a j o r I n d u s t r i a l P r o j e c t s

— M a j o r L a n d P r o j e c t s

N O T E : N u m b e r s c o r r e s p o n d w i t h

c h a r t s o n P a g e 3 a n d P a g e 4

5

JACKSONVILLE INTERNATIONAL AIRPORT

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DOWNTOWNJACKSONVILLE

5 MILES

W E S T S I D EJ A C K S O N V I L L E , F L O R I D A


— M a j o r L a n d P r o j e c t s

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N O T E : N u m b e r s c o r r e s p o n d w i t h

c h a r t s o n P a g e 3 a n d P a g e 4

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4 MILES

S O U T H S I D EJ A C K S O N V I L L E , F L O R I D A


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N O T E : N u m b e r s c o r r e s p o n d

w i t h c h a r t o n P a g e 4

7


FOUNDING PRINCIPALS

Steve Graham, MAI, CRE

Mike Graham, CPM, SIOR

MANAGING PARTNER

Gardner Lee, CPM, SIOR

BUILDING ENGINEER

Richard Abel

MANAGING BROKER

Peter Crolius, SIOR

PROPERTY MANAGEMENT

Ron Kirkland, RPA, FMA

GRAHAM & COMPANY PERSONNEL – JACKSONVILLE

110 Office Park Drive

Suite 200

Birmingham, AL 35223

TEL 205.871.7100

FAX 205.871.3331

| B I R M I N G H A M

grahamcompany.com

200 Westside Square

Suite 800

Huntsville, AL 35801

TEL 256.382.9010

FAX 256.382.9011

| H U N T S V I L L E

550 Water Street

Suite 1225

Jacksonville, FL 32202

TEL 904.281.0003

FAX 904.281.0849

| J A C K S O N V I L L E

120 Richard Jackson Boulevard

Suite 210

Panama City Beach, FL 32407

TEL 850.563.1500

FAX 850.563.1504

| G U L F C O A S T

MEASURE US BY OUR ACTIONS

A B O U T G R A H A M & C O M P A N Y

Founded in 1978, Graham & Company is a full-service commercial real estate firm based in Birmingham.

With offices in Birmingham and Huntsville, Alabama and Jacksonville and Orlando, Florida, the

company offers professional services including sales, leasing, property management, appraisal,

consulting, investment and development. In response to client demand, Graham has systematically

extended its range of services and geographic reach, now serving clients throughout Alabama and

several surrounding states.

A F F I L I AT I O N S

NAIOP–National Association of Industrial & Office Properties

SIOR–Society of Industrial & Office Realtors

ICSC–International Council of Shopping Centers

CCIM–Certified Commercial Investment Member

LEED–Leadership in Energy and Environmental Design

CRE–Counselors of Real Estate

IREM–Institute of Real Estate Management

BOMA–Building Owners and Managers Association

ULI–Urban Land Institute

industrial market survey | jacksonville rates fell by almost one-third vs. 2009 (18.5 % vs. 12.4 %),...

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