2017

INDUSTRIAL MARKET SURVEY | JACKSONVILLE [ MARKET TOTALS ] 2016 Market

Overall conditions in Jacksonville’s industrial market continue to improve despite mixed economic signals. Employment and local business expansion has continued to grow at a steady pace, and the emergence of e-commerce has contributed to the demand for larger space and significant absorption. Positive trends in leasing activity and rent growth are providing a renewed focus from developmers and investors in the Jacksonville industrial market.

JACKSO NVI LLE REAL ESTATE MARKET OVERVIEW

YEAR END 2015 YEAR END 2016

TOTAL INVENTORY SF 105,252,682 SF TOTAL INVENTORY SF 104,660,000 SF

VACANCY RATE 8% VACANCY RATE 6.2%

ABSORPTION 2,419,438 SF ABSORPTION 2,151,786 SF

COMPLETED CONSTRUCTION 747,752 SF COMPLETED CONSTRUCTION 835,673 SF

* Excludes Build-To-Suits SIGNIFICANT 2016 LEASES

TENANT PROPERTY SIZE (SF) DATE SUBMARKET

SHELL GAS & POWER 111 IMESON PARK BOULEVARD 248,200 1ST QTR NORTHSIDE

MERCEDES-BENZ 13470 INTERNATIONAL PARKWAY 120,000 1ST QTR NORTHSIDE

CALAVO 4627 J. P. HALL BOULEVARD 208,000 3RD QTR CLAY COUNTY

AMAZON 11084 CABOT COMMERCE CIRCLE 63,165 4TH QTR NORTHSIDE

8215 WESTSIDE INDUSTRIAL CUSTOM ASSEMBLY 85,789 4TH QTR WESTSIDE DRIVE SIGNIFICANT 2016 SALES

BUYER PROPERTY SIZE (SF) PRICE SELLER

EASTGROUP FLAGLER CENTER 357,900 $24,000,000 INVESTCORP

GRAMMERCY 600 WHITAKER 469,830 $22,500,000 USAA REAL ESTATE

DYNAREX CORPORATION 14500 N. HYATT 278,982 $3,275,000 SABEL GROUP

CASE WORK IGUANA INVESTMENTS 1030 ELLIS ROAD 144,000 $4,150,000 OF AMERICA

HANS MILLER CORPORATION 5406 W. 1ST STREET 120,482 $3,000,000 CENVEO

SIGNIFICANT 2016 CONSTRUCTION ACTIVITY

PROJECT COMPLETION DATE SIZE (SF) DEVELOPER SUBMARKET

WESTSIDE INDUSTRIAL PARK 2ND QTR 2016 237,000 PATTILLO WESTSIDE

PORT JAX TRADE CENTER 1ST QTR 2016 70,512 SPINNER NORTHSIDE

SIGNIFICANT 2016 PROJECTS UNDER CONSTRUCTION/RENOVATION

BUILDING COMPLETION DATE SIZE (SF) TENANT SUBMARKET

HILLWOOD Q2 2017 450,000 SPECULATIVE WESTSIDE

SUNCAP Q4 2017 500,000 SPECULATIVE NORTHSIDE

Information deemed reliable, but not guaranteed.

Mark Scott Peter Crolius 550 Water Street 904.281.0003 904.281.0003 Suite 1225 [email protected] [email protected] Jacksonville, FL 32202 2 MAJOR LAND PROJECTS

1 2 3 4 5 6 7 Jacksonville North Jacksonville Pecan Park Lem Turner Woodwings West/ Land Development/ Woodwings East/ Commerce Park/ Interstate Commerce Distribution Center/ New Berlin Industrial Park/Lem Pecan Park Road @ Location Duval Road @ I-295 NW Quad of I-95 and Park/I-95 @ Pecan US 17/Pecan Park Distribution Center Turner Road I-295 Pecan Park Road Park Road Road @ I-95

Jacksonville Aviation Jacksonville Aviation Pecan Park Road Benderson Ownership SunCap Schafer Development Stokes Land, LC Authority (JAA) Authority (JAA) Investments, LLC Development

Submarket Northside Northside Northside Northside Northside Northside Northside

890 Acres 328 Acres Industrial Land Area 500 Acres Mixed-Use/327 Light Mixed-Use / 93 Acres 319 (Ind.) 117 Acres 160 Acres Industrial 300 Light Industrial

Total Planned Development 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 (SQ FT)

IL Zoning with Fair- PUD with Fair-Share Share Agreement Agreement In-Place Zoning/Concurrency Zoning/Concurrency Fully-entitled w/ Entitlements and Concurrency Part of JIA DRI Part of JIA DRI w/City of In-Place In-Place concurrency In-Place w/City of Jacksonville Jacksonville

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 2016 None None None None None None None Development

Owners will sell Utilities located Under J.V. contract Site has additional Master Plan includes Ownership will sell Ownership will sell lots, B-T-S, some Comments 1200 feet from the with Majestic 22 acres for retail/ 150 acre golf course land or B-T-S land or B-T-S speculative property Development commercial use development

8 9 10 11 12 13 14 Cecil Commerce Port Jax Trade Greenfield @ Imeson Land Development/ Midpoint Center/Cecil Westlake Industrial ProLogis/ Pritchard Majestic @ Westlake/ Center/S@-9A and Road and Moncrief Location Commerce Park Commerce Center Park/Pritchard Road Road Pritchard Road Alta Drive Road Parkway

Jointly Owned and Administered by Group IV Norfolk Southern Majestic Ownership Knabb JEDC (11,000 Acres) Prologis Greenfield Development Railroad Development and JAA (6,000 Acres)

Submarket Northside Westside Westside Westside Westside Westside Westside

17,000 of which 4,000 is 1,500 Acres (300 Industrial Land Area 31 Acres 700 Acres 95 Acres 14 Acres 118 Acres commercially ind.) developable

Total Planned SAFT America: 1M SQ FT among Development 475,000 SQ FT 6.3M SQ FT 143,000 SQ FT 2.17M SQ FT 1,598,875 SQ FT 183,500 SQ FT 6 bldgs 126,000 (SQ FT) (2010) -166,000

Fully-entitled and Fully-entitled w/ Entitlements Entitled DRI Westlake DRI Part of Westlake DRI Westlake DRI Pad-ready concurrency

Unilever (772,200 SQ 5 Building = FT); ING (400,000 336,425 SQ FT Over 30 tenants, SQ FT); Johnson 82,000 fully- including Development occupied B-T-S with Bridgestone Tire's (546,000 SQ FT); Existing Buildings W & O, 82,000 spec None 0 0 0 recently-completed BJ's Warehouse warehouse with 1M sq ft warehouse (460,972 SQ FT); JM 57,000 SQ FT vacant. on 63.3 acres Family (283,000 SQ 80,380 SQ FT FT); Penser (250,000 for lease SQ FT)

Norfolk Southern Rail Service N/A CSX CSX N/A N/A N/A Railroad

Planned 2016 37,000 SQ FT 6.3M SQ FT 830,000 SQ FT None None None None Development

North 4,500 Acres Flexible development Owner has up to 6 Eastern Baker Under Master Phases 1 and 2 Norfolk Southern 2 Buildings Planned: plan includes both designed and permit- County location Developer contract include 2-486,400 Comments sells land only; no 100,700 SQ FT and large cross-dock ready building plans I-10 access at with Hillwood SQ FT cross-dock vertical development 82,500 SQ FT and service-center for end-users. SR228 Investment warehouses buildings. Properties

3 MAJOR INDUSTRIAL PROJECTS 1 2 3 4 5 6 7 8 9 Majestic Imeson International Tradeport International Northpoint Northport Alta Lakes Westside Creekside @ Westlake Project Name/ Tradeport/ Business Park/ Industrial Park/ Industrial Park/ Logistics Commerce Industrial Park/ Tradeport/ Industrial Park/ Location Airport Road Airport Road Heckscher Drive New Berlin and Center/11530 Center/Blasius Pritchard Road Alvarez Road Pritchard Road and Tradeport and Duval Road and North Main Faye Roads New Berlin Road and Faye Roads West of I-295 Road Street

Majestic Flagler Pattillo Pattillo Ownership Jackson-Shaw MDH/STAG Oakmont DRA Advisors Exeter Development Development Development Development

Submarket Northside Northside Northside Northside Northside Northside Northside Westside Westside

1,500 Acres. 505 Land Area 47 Acres 26 Acres 93 Acres industrial acres 300 Acres 58 Acres 66 Acres 100 Acres 960 Acres for sale

Existing 318,000 SQ FT Developer- Building and 334,930 among 904,400 1, 588, 705 872,627 565,215 among 546,000 1,774,000 5,325,434 Owned 520,000 SQ FT 3 Buildings 8 Buildings 7 Buildings 1 Building 4 Buildings 1 Building Inventory Building

Total Availability 318,000 SQ FT 0 64,372 408,600 0 471,000 284,000 0 174,500 (SQ FT)

Current 38% 0% 7% 23% 0% 54% 50% 0% 3% Vacancy

Largest Contiguous 318,800 0 26,779 319,000 0 471,000 200;000 0 112,600 (SQ FT)

Planned for Delivery Within 0 0 0 0 0 0 0 0 0 12 Months

Quoted Rates $3.25 - $4.50 $3.00 - $5.00 $3.00 - $4.00 $2.75 - $4.25 $3.95 $4.25 $3.95 $4.25 $4.50 (PSF) NNN NNN NNN 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 Approximately Approximately 0 0 Up to 18M SQ FT 2.65M SQ FT 0 300,000 SQ FT 0 Developable 350,000 SQ FT 5M SQ FT Building Area

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 First Coast Perimeter Crossroads Bowden Salisbury Interstate Westside Lakepointe Distribution Project Name/ West Industrial Distribution Commerce Center Point/ Business Distribution Dist. Center/ Business Park/ Center/SR 207 Location Park/ I-295 and Center/6600 Center/ U.S. 1 Park/7251 Center/8475 N. Ellis Road Western Way at I-95 St. Johns Pritchard Road Pritchard Road Salisbury Road Salisbury Road Western Way County

Republic Eastgroup Sealy & Fountain Ownership ING Clarion Greenfield Greenfield EastGroup EastGroup Development Properties, Inc. Company 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 52 Acres

Existing 260,000 1,025,165 Developer- Existing 126,056 107,840/ 624,237 among 122,400/ 181,120/ 375,125 among 7 Buildings 203,320 Owned Volkswagen (Building #2) 2 Buildings 13 Buildings 2 Buildings 2 Buildings 9 Buildings leased Inventory B-T-S

Total Availability 0 0 162,000 15,240 28,918 0 35,336 28,840 24,610 (SQ FT)

Current 0% 0% 16% 14% 5% 0% 20% 10% 12% Vacancy

Largest Contiguous N/A 0 162,200 10,440 11,718 0 35,336 15,000 24,610 (SQ FT)

Planned for Delivery Within 0 0 0 0 0 0 0 0 0 12 Months

Quoted Rates $5.25 $4.25 $3.95 $6.50 $4.50-$7.00 0 $4.95 $5.50 - $9.00 $4.50 (PSF)

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’

Additional 7.5 550,000 SQ acres available. Cross-Dock Potential FT, 3 Additional Up to 85,000 Design 139,400 Additional Buildings additional SQ FT and 195,000 0 0 0 0 0 800,000 Developable Planned Ranging Part of a total planned 2 add’l Building Area from 100,000 - 490,000 SQ bldgs 300,000 SQ FT FT mixed-use development.

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

4 NORTHSIDE JACKSONVILLE,

4 5 6

JACKSONVILLE INTERNATIONAL AIRPORT

1 2 3 2 3 1

5 7 6

7 8 4 5 MILES 9

— Major Industrial Projects

— Major Land Projects

NOTE: Numbers correspond with charts on Page 3 and Page 4

5 WESTSIDE JACKSONVILLE, FLORIDA

14 8 9 10 12 13 11 11

12

DOWNTOWN JACKSONVILLE 4 MILES

10

— Major Industrial Projects

— Major Land Projects

NOTE: Numbers correspond with charts on Page 3 and Page 4

6 SOUTHSIDE JACKSONVILLE, FLORIDA

DOWNTOWN JACKSONVILLE

13 14 15

16 17

18

— Major Industrial Projects

NOTE: Numbers correspond with chart on Page 4

7 ABOUT GRAHAM & COMPANY

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 Panama City, 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.

AFFILIATIONS

NAIOP–National Association of Industrial & Office Properties SIOR–Society of Industrial & Office Realtors CRE–Counselors of Real Estate ICSC–International Council of Shopping Centers IREM–Institute of Real Estate Management CCIM–Certified Commercial Investment Member BOMA–Building Owners and Managers Association LEED–Leadership in Energy and Environmental Design ULI–Urban Land Institute

| GULF COAST (MS, LA, AL)

133155 Shriners Boulevard Suite D MEASURE US BY OUR ACTIONS grahamcompany.com Biloxi, MS 39532 TEL 228.207.0934 FAX 850.563.1504

| BIRMINGHAM | HUNTSVILLE | JACKSONVILLE | GULF COAST (FL)

110 Office Park Drive 355 Quality Circle 550 Water Street 100 Richard Jackson Boulevard Suite 200 Suite E Suite 1225 Suite 115 Birmingham, AL 35223 Huntsville, AL 35806 Jacksonville, FL 32202 Panama City Beach, FL 32407 TEL 205.871.7100 TEL 256.382.9010 TEL 904.281.0003 TEL 850.563.1500 FAX 205.871.3331 FAX 256.382.9011 FAX 904.281.0849 FAX 850.563.1504

GRAHAM & COMPANY PERSONNEL – JACKSONVILLE

PROPERTY MANAGEMENT FOUNDING PRINCIPALS MANAGING BROKER Ron Kirkland, RPA, FMA Steve Graham, MAI, CRE Peter Crolius, SIOR Mike Graham, CPM, SIOR

BUILDING ENGINEER ADMINISTRATION Rick Lee Jennifer Mathews