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.