Two proposed speculative warehouse projects, totaling almost 460,000 square feet of space, are now in for permitting: Becknell Industrial’s proposed speculative warehouse in Westlake Industrial Park and the foundation for Pattillo Industrial Real Estate’s planned center in Westside Industrial Park.
They join an industrial market with historic low vacancy rates that encourage speculative development to lure prospective tenants and investors.
For Becknell, the city is reviewing a building-permit application for a 185,696-square-foot speculative building at 12075 Pritchard Road at Westlake Industrial Park.
No contractor is listed for the $7 million project.
Daniel Fogarty Jr., senior vice president of Lyons, Illinois-based Becknell Industrial, said previously that demand for warehouse space is outpacing available supply.
“There are very few Class A, modern industrial facilities available to serve many prospects currently in need of such space,” he said, adding that such facilities offer higher warehouse ceilings, more loading docks and more auto and truck trailer parking.
Westlake Industrial Park, owned by Atlanta-based Norfolk Southern, is along Pritchard Road west of Interstate 295.
Becknell partnered with Norfolk Southern to develop at Westlake.
Fogarty said Becknell expects to close by June 1 on the purchase of its first parcel, about 18 acres, and start construction immediately on the spec building. The shell construction will be delivered by year-end.
The property is owned by Westlake Land Management Inc., part of Norfolk Southern.
Pattillo Industrial Real Estate is preparing to lay the foundation for a 272,468-square-foot speculative warehouse in Westside Industrial Park.
Pattillo, through IM6282 LLC, applied to the city to build the almost $2.7 million foundation at 6282 Imeson Road. Arco Design/Build Inc. of Atlanta is the contractor.
The city approved the $1.245 million site-clearing work in February and is reviewing a permit to build the warehouse at a cost of $6.26 million.
Pattillo Senior Vice President Peter Anderson said he expects completion in October.
Anderson said previously the $10 million speculative building was needed for inventory in a tight industrial market.
Plans filed for the project identify it as a build-to-suit for Benco Dental, however Benco Dental Supply Co., which leases in Westside Industrial Park, will move to the International 3 building in Jacksonville International Tradeport.
Anderson said the building is speculative and he was “chasing prospects.”
“The market remains strong as tenant interest in leasing space has remained consistent and demand to purchase investment product is at an unprecedented level. Developers and property owners are scrambling to deliver speculative space to the market,” he said.
“Jacksonville has an abundance of industrial land so there is plenty of opportunity for growth.”
Cushman & Wakefield reported in its first-quarter Jacksonville industrial report that overall vacancy reached a record low of 3.4 percent. Within the market, warehouse-distribution space vacancy fell to 4 percent, also historically low.
The rate in West Jacksonville, the largest industrial submarket in the city, ended the quarter at 2.9 percent.
Cushman & Wakefield said rents are rising as well.
It said build-to-suit construction, meaning that a developer builds a facility for lease to a specific tenant, represented more than half of the development at the end of the quarter.
“Given the need for Class A warehouse space, most inventory is expected to be fully leased prior to completion further supporting the groundbreaking of additional speculative developments later in the year,” said the report.
Several more speculative warehouse projects are in the pipeline in West and North Jacksonville.
