In a market with industrial vacancy rates below 4%, the city issued permits April 18 for Evans General Contractors to build two West Jacksonville warehouses totaling more than 720,000 square feet and continues to review a third at 1 million square feet.
The three buildings comprise the first phase of Florida Gateway Logistics Park at 9909 Pritchard Road, west of Interstate 295, totaling 1.72 million square feet of space.
Construction is welcomed by real estate brokers.
“Demand is relentless in Jacksonville,” real estate firm JLL said in its first-quarter 2022 report about Northeast Florida industrial market conditions.
Population growth leads to more consumer demand regionally, while the city’s geographic position in the state and Southeast makes it a logistics hub.
In March, the city permitted the foundation construction for the three structures at $1.18 million.
The costs for the initial three buildings are:
• Building 200 at 300,300 square feet and a construction cost of almost $13.52 million. The foundation is $230,680.
• Building 300 at 421,260 square feet and $15.88 million. The foundation is $285,520.
• Building 800 is 1 million square feet at $34.31 million. The foundation is $668,440.
Counting the construction and foundations, site clearing and electrical work, the costs total $67 million.
JPMorgan Chase financed the first phase at $71.825 million.
The next phases will add more space. The remaining five buildings range from 250,200 to 416,000 square feet.
California-based CT Realty in partnership with Diamond Realty Investments LLC bought 251 acres in West Jacksonville to develop a more than $300 million, 3.2 million-square-foot, eight-building industrial park.
DRI/CTR JAX Phase I LLC bought the vacant land April 29, 2021, from Southeast Toyota Distributors LLC of Deerfield Beach for $19.5 million.
The first phase is 164 acres. The city approved initial site clearing Aug. 24.
England, Thims & Miller Inc. of Jacksonville is the civil engineer. Codes-ABC Inc. is handling code-compliance review.
The JLL real estate company, also known as Jones Lang LaSalle Inc., represents the developer.
JLL Senior Managing Director Luke Pope said Feb. 21 the first three buildings will be completed about the first quarter of 2023.
A speculative structure of 1 million square feet makes space available to large tenants who might be on a tight timetable.
JLL reported in its first-quarter 2022 market report for Northeast Florida that the year began with record levels of new construction.
It said more than 6 million square feet of space is under development, with two parks, Imeson Park South and Florida Gateway Logistics, accounting for more than half the space.
Both parks include a building of more than 1 million square feet of space, “highlighting the unprecedented demand for industrial space in Jacksonville.”
JLL said that of the more than 750,000 square feet of space completed among four buildings in the Northside and West Jacksonville submarkets, only Of this however, only 8% remains available to lease.
It also said that demand, along with rising construction costs and land prices, has resulted in another quarter of rent growth. Rents rose 19.6% to $5.68 per square foot over the first quarter of 2021.
JLL said Jacksonville’s population growth outpaces the state and other Florida metro areas.
