By James F. Morgan, CCIM
Full post at SVN Florida
The Jacksonville Industrial market has been impacted, with 1,378,000 SF added in 2009 and approximately 7,424,000 SF vacant out of the 70,720,000 SF currently in the market. In 2009 we showed a positive absorption of 709,000 SF. Rents slid over the last two years to $4.06 per/ SF as an average rent rate, which is a slight decline. Currently contraction (shedding of space), and leased, but under utilized, space exists. Depending on the speed of market recovery will affect how these tenants move to right size/ right price. The market realities are that pressure has been pushed from “A” space where there is an abundance of distribution in the neighborhood of the port area, where significant Jacksonville Port Authority expansion activities were slowed by the recession, facilities that remain available for absorption, which has occurred but on a limited basis.
The good news is that the Jacksonville Port Authority has reported an increase in cargo. They had their container cargo increase from 700,000 to 750,000; however, their auto cargo has decreased from 650,000 in 08’ to 420,000 in 09’ and remains low, but is increasing. The primary export market for the Jacksonville Port is Puerto Rico, and the primary importer is Colombia. We are seeing new activity with Mitsui, currently bringing in two ships regularly, and recently adding a third ship on a weekly basis serving Vietnam, Singapore, and South China. This represents new ports and markets for the Jacksonville Port. The Mitsui expansion should continue to five ships weekly over the next year or two, and there are additional carriers that are coming through the Suez Canal that are projected to come to the Jacksonville Port.
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