Jacksonville Industrial Market Update

INDUSTRIAL MARKET UPDATE JACKSONVILLE 2Q 2024

INDUSTRIAL SNAPSHOT JACKSONVILLE 4.4% DIRECT VACANCY

2Q 2024

20.0 MSF MANUFACTURING 4.4 MSF FLEX 89.5 MSF WAREHOUSE/DISTRIBUTION

113.9 MSF TOTAL INVENTORY

4.9% OVERALL VACANCY INCLUDES SUBLEASES

822,455 SF YTD NET ABSORPTION $8.02/SF DIRECT RENT 1,982,980 SF YTD LEASING ACTIVITY

1

2

4

5

3

2,351,519 Total SF 783,840 Avg Bldg SF 3 Buildings

2,373,850 Total SF 791,283 Avg Bldg SF 3 Buildings

8,196,275 Total SF 199,909 Avg Bldg SF 41 Buildings

3,343,804 Total SF 260,293 Avg Bldg SF 13 Buildings

2,253,925 Total SF 86,689 Avg Bldg SF 26 Buildings

2Q 2024

BY THE NUMBERS

JACKSONVILLE

JACKSONVILLE

DIRECT VACANCY

YTD LEASING ACTIVITY

CONSTRUCTION COMPLETIONS

UNDER CONSTRUCTION

MARKET

INVENTORY

DIRECT RENT

YTD ABSORPTION

ORLANDO

JACKSONVILLE 113,853,013 113,853,013

4.4% $8.02 1,982,980 1,982,980 822,455

803,885 4,373,697 4,373,697

ORLANDO 122,988,766

6.9%

$9.49

2,452,184

-166,837

2,741,547

1,734,551

TAMPA

LAKELAND / POLK

73,337,458

8.9%

$7.33

223,372

231,752

1,944,240

809,388

PINELLAS COUNTY

35,912,089

3.8%

$10.90

538,067

-199,209

208,510

78,531

TAMPA / HILLSBOROUGH 84,650,417

5.1%

$10.49

1,933,773

1,022,259

1,399,142

3,121,702

PALM BEACH BOCA RATON

PALM BEACH COUNTY

41,985,406

4.7%

$14.96

627,798

485,430

763,254

1,408,642

FT LAUDERDALE

BROWARD COUNTY

92,609,187

3.0%

$15.57

1,172,343

442,687

618,023

171,983

MIAMI

MIAMI / DADE

176,689,465

4.3%

$17.57

3,296,351

870,322

4,742,159

4,731,354

FLORIDA TOTAL

742,025,801

5.1% $11.45 14,226,868 3,508,859 13,220,760 16,429,848

95 NOTABLE SALES & LEASES SALES COMPLETED IN 2Q 2024 ADDRESS BUYER/SELLER SF YEAR BUILT PRICE DUVAL COUNTY NASSAU COUNTY

2Q 2024

CAP RATE

PRICE/SF

Jacksonville International Airport (JAX)

Big Talbot Island State Park

Hillwood Investment Properties / CT Realty

1

9909 PRITCHARD RD

1,000,350

2023

$91,730,000

$91.70

5.9%

295

3

17

Bixby Capital Management/ Link

2 6950 PRITCHARD RD

297,000

2019

$38,724,000

$130.38

4.1%

2

1

2

Bixby Capital Management/ Link

3

6600 PRITCHARD RD

126,480

2009

$14,776,000

$116.82

4.1%

3

1

5

4

5875 HIGHWAY AVE, 600 SUEMAC RD, 5885 MINING TERR, 3010 POWERS AVE, 9855 MINING TERR, 5867 MINING TERR & 5748 MINING TERR

JAXPORT

4

Redfearn Capital / Somerset Properties

380,589

Multi

$47,800,200

$127.33

6.1%

Jacksonville Executive at Craig Airport

4

90

4

LEASES SIGNED IN 2Q 2024 ADDRESS LESSEE / LESSOR

95

St Johns River

Herlong Recreational Airport

Naval Air Station Jacksonville (NIP)

SF

YEAR BUILT RENT

TIA

TERM ( months )

Cecil Airport (VQQ)

1

295

1

4

220 ACCOLADE AVE

DSC Trading / Scannell

40,145

2023

$12.00

$8.54

60

8215 WESTSIDE INDUSTRIAL DR

2

Quest / Pattillo

56,878

2023

$9.00

$9.00

61

DUVAL COUNTY

Modern Cabinetry / Massy Distribution

10775 YEAGER RD

67,588

2023

$8.00

AS-IS

62

3

ST JOHNS COUNTY

4290 PERIMETER W. INDUSTRIAL PKY

HemaSource / Rooker

138,180

2024

$8.70

$15.00

70

4

1

2101 W 33rd St

Neal Brothers / Redfearn

203,652

1964

$6.00

$0.25

84

5

95

HISTORIC REVIEW JACKSONVILLE

2Q 2024

5 YEAR HISTORIC REVIEW

5.7%

0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 10,000,000 11,000,000 12,000,000

6.0%

57

57

5.0%

4.4%

45

4.0%

3.4%

3.3%

37

3.0%

38

2.1%

2.0%

Vacancy Rate

Square Feet (Millions)

1.0%

0.0%

2020 2020

2021 2021

2022 2022

2023 2023

1,982,980 YTD 2024 YTD 2024

LEASING ACTIVITY

5,402,186

5,539,454

6,023,683

9,159,152

TENANTS IN THE MARKET SF (JULY) DIRECT NET ABSORPTION CONSTRUCTION COMPLETIONS DIRECT VACANCY RATE

4,962,500

5,987,000

10,897,000

10,895,000

8,147,500

Leasing Activity

Tenants in the Market SF

Direct Net Absorption

Construction Completions

Direct Vacancy Rate

2,644,473

4,477,202

3,439,150

5,190,042

822,455

2,784,692

2,706,672

2,451,034

8,218,228

803,885

5.7%

3.4%

2.1%

3.3%

4.4%

Leasing Activity

Tenants in the Market SF

Tenants in the Market #

Direct Net Absorption

Construction Completions

Direct Vacancy Rate

TENANT DEMAND MARKET TENANT INDUSTRIES JACKSONVILLE

% TENANTS IN THE MARKET BY SF

750,000+ SF 2%

400,000 SF - 749,999 SF 9%

Up to 49,999 SF 25%

MANU- FACTURING 1,380,000 SF

CONSUMER GOODS 605,000 SF

BUILDING SUPPLY 940,000 SF

3PL

200,000 SF - 399,999 SF 27%

1,220,000 SF

50,000 SF - 99,999 SF 21%

100,000 SF - 199,999 SF 16%

TENANT IN THE MARKET AVERAGE SIZE (SF) AUTOMOTIVE 220,000 SF

FOOD

MEDICAL 112,500 SF

UNDISCLOSED 3,535,000 SF

1,085,000 SF

750,000+ SF 400,000 – 749,999 SF 200,000 – 399,999 SF 100,000 – 199,999 SF 50,000 – 99,999 SF 0 – 49,999 SF

169,037 SF AVERAGE TENANT SIZE BETWEEN 2019 – YTD 2024

177,188

2022 2023 YTD 2024

192,450

224,127

143,739

2019 2020 2021

120,877

155,841

0

50,000

100,000

150,000

200,000

250,000

45

42 Q2 2024 AVG # OF TENANTS 166,862 SF Q2 2024 AVG TENANT SIZE

CURRENT TENANTS IN THE MARKET

TOTAL TENANTS IN THE MARKET* NEW TO JACKSONVILLE*

60%

*AS OF JULY 2024

2Q 2024

INVESTMENT GRADE SUBSET JACKSONVILLE

INVESTMENT GRADE HISTORIC LEASE RATES

$4.66 sf NNN $4.75 sf NNN $5.22 sf NNN $6.60 sf NNN $6.96 sf NNN $8.26 sf NNN

THE INVESTMENT GRADE SUBSET is the competitive landscape for Jacksonville's future speculative projects and institutional investors. At present we are tracking approximately 45 Million Square Feet within the market.

YTD 2024

2023

CURRENT 2Q 2024 ACTUAL

FUTURE YEAR END 2024 PREDICTION

2022

45,374,657 SF INVESTMENT GRADE SUBSET

47,110,075 SF INVESTMENT GRADE SUBSET

2021

8.2% CONSERVATIVE

7.07% MODERATE

6.4% AGGRESSIVE

7.47% DIRECT VACANCY

2020

2019

JACKSONVILLE WHAT'S AVAILABLE IN THE INVESTMENT GRADE SUBSET

2Q 2024

40,000 - 99,999 SF

100,000 - 199,999 SF EXISTING VACANT SPACES: 4 UNDER CONSTRUCTION VACANT SPACES: 5

200,000 - 299,999 SF EXISTING VACANT SPACES: 3 UNDER CONSTRUCTION VACANT SPACES: 4 2025 EXPIRING LEASES: 4 DEALS COMPLETED YTD: 2 TOTAL VACANT SF (UC & EXISTING) 6,237,415 TOTAL # UNDER CONSTRUCTION VACANT BUILDINGS 13 TOTAL # EXISTING VACANT SPACES 19 TOTAL SF OF TENANTS IN THE MARKET 8,147,500 TOTAL # TENANTS IN THE MARKET 45

EXISTING VACANT SPACES: 8 UNDER CONSTRUCTION VACANT SPACES: 2

2025 EXPIRING LEASES: 11 DEALS COMPLETED YTD: 5

2025 EXPIRING LEASES: 13 DEALS COMPLETED YTD: 4

400,000 SF+

300,000 - 399,999 SF EXISTING VACANT SPACES: 3 UNDER CONSTRUCTION VACANT SPACES: 1 2025 EXPIRING LEASES: 2 DEALS COMPLETED YTD: 0

EXISTING VACANT SPACES: 1 UNDER CONSTRUCTION VACANT SPACES: 1 2025 EXPIRING LEASES: 0 DEALS COMPLETED YTD: 0

JACKSONVILLE CONSTRUCTION DELIVERIES 2024

2Q 2024

PROJECTED TOTAL DELIVERIES REMAINING IN 2024: 2,744,318 SF TOTAL DELIVERIES IN 2024: 3,548,203 SF

Q3 DELIVERIES

Q4 DELIVERIES

1,021,354* SF DELIVERED

1,722,964 SF DELIVERED

4 BUILDINGS

10 BUILDINGS

255,339 SF AVERAGE SF

172,296 SF AVERAGE SF

*470,881 SF PRE-LEASED

DEVELOPMENT OUTLOOK JACKSONVILLE

2Q 2024

PLANNED NOT STARTED

UNDER CONSTRUCTION

SUMMARY

6

5

4

3

1

2

4,373,697 TOTAL SF UNDER CONSTRUCTION 19 BUILDINGS UNDER CONSTRUCTION 230,195 AVG SF OF BUILDINGS UNDER CONSTRUCTION 6,836,313 TOTAL SF PLANNED NOT STARTED 19 BUILDINGS PLANNED NOT STARTED

47,460 SF REMAINING

2 BUILDINGS

2 BUILDINGS

100% LEASED

3 BUILDINGS

Imeson Park South 1400 Zoo Pkwy 782,933 SF VanTrust Bldg B1: 235,733 SF Bldg D: 547,200 SF

Jacksonville Cold Storage 9765 N Main St 332,701 SF Saxum Real Estate 50' Freezer Height

Jacksonville Cold 10105 Pritchard Rd 265,264 SF Karis Cold 30' - 50' Clear Height

IGP / 95 Logistics Center 3405b International Golf Pkwy 509,900 SF Foundry Commercial

Edgewood Logistics Center 2305 Edgewood Ave 250,800 SF Graham & Co. Bldg A: 154,800 SF Bldg B: 96,000 SF

Perimeter West Industrial Park 4200 Perimeter Industrial Pkwy, Bldg C 185,640 SF Rooker 32' Clear Height

4Q 2024 Projected Completion Bldg 100: 193,600 SF Bldg 200: 205,700 SF Bldg 300: 110,600 SF

3Q 2024 Projected Completion

4Q 2024 Projected Completion

3Q 2024 Projected Completion

4Q 2024 Projected Completion

3Q 2024/ 1Q 2025 Projected Completion

8

11

12

7

9

10

2 BUILDINGS

2 BUILDINGS

2 BUILDINGS

3 BUILDINGS

Imeson Port Center 0 Zoo Pkwy 396,000 SF Chalmers Property Bldg 1A: 198,000 SF (Dec 2024) Bldg 1B: 198,000 SF (April 2025)

Airport 295 Logistics Park 12435 Lem Turner 499,000 SF Seefried Industrial

Imeson International Park 1215 Imeson Park Blvd 267,280 SF Webb 32' Clear Height

Legend Point Logistics Crossing Accolade Ave 547,075 SF Scannell

Westlake Industrial Park 9395 Pritchard Rd, Bldg 1 337,104 SF Midwest Industrial Funds

Alta Drive Industrial 10350 Alta Dr 101,240 SF

Spinner Const. 28' - 34' Clear Height

Bldg 4: 266,274 SF Bldg 5: 280,801 SF

4Q 2024 Projected Completion Bldg 100: 138,000 SF Bldg 200: 114,000 SF Bldg 300: 247,000 SF

2Q 2025 Projected Completion

1Q 2025 Projected Completion

4Q 2024 / 2Q 2025 Projected Completion

3Q 2024 Projected Completion

4Q 2025 Projected Completion

13

DEVELOPMENT OUTLOOK JACKSONVILLE

2Q 2024

NASSAU COUNTY

21

DUVAL COUNTY

18

19

95

23

17

16

13

14

Jacksonville International Airport (JAX) 9

15

18

20

295

12

17

7

1

3

8

3 BUILDINGS

2 BUILDINGS

2 BUILDINGS

2 BUILDINGS

6 22 14

Arnold Road Industrial Arnold Road 685,464 SF Saxum Bldg 5: 236,880 SF Bldg 8: 142,240 SF Bldg 9: 306,344 SF TBD Projected Completion

Westlake Industrial Park 0 Pritchard Rd 407,250 SF First Gulf

Westlake Industrial Park 0 Development Rd- Bldg 3 270,716 SF Becknell Industrial 32' Clear Height

Florida Gateway Logistics Park

Wildlight Commerce Park Wildworks Ave, Yulee 230,000 SF Pattillo Industrial

Westlake Industrial Park 9395 Pritchard Rd 192,924 SF Midwest Industrial Funds

2

1

10

15

9909 Pritchard Rd 829,200 SF CT Realty Bldg 4: 650,000 SF Bldg 6: 179,200 SF

4

17 16

JAXPORT

24

Bldg 1: 299,520 SF Bldg 2: 107,730 SF

Jacksonville Executive at Craig Airport

Bldg 1: 140,000 SF Bldg 2: 90,000 SF

1Q 2026 Projected Completion

TBD Projected Completion

TBD Projected Completion

2Q 2025 Projected Completion

TBD Projected Completion

90

95

St Johns River

Herlong Recreational Airport

19

20

21

22

23

24

3

Naval Air Station Jacksonville (NIP)

Cecil Airport (VQQ)

1

295

2 BUILDINGS

MULTI BUILDINGS

Pecan Park Industrial 186 Pecan Park Road

North Point Industrial Park 3350 Port Jacksonville Pkwy 208,221 SF / BTS Pattillo Industrial

Benderson Industrial Site I-95 & Pecan Park Rd 2,000,000 SF Benderson Multiple Buildings

Westlake Trade Center II 10070 Pritchard Rd 460,219 SF Pattillo Industrial 40' Clear Height

Jax Airport Logistics Center 14825 International Airport Blvd 425,000 SF Pan American Co

Addor Lane Distribution Center 514 Addor Lane 501,079 SF Bachelor Properties 40' Clear Height TBD Projected Completion

DU

525,000 SF / BTS Seefried Industrial 40' Clear Height

CO

ST JOHNS COUNTY

Bldg 1: 200,000 SF Bldg 2 : 225,000 SF TBD Projected Completion

32' Clear Height

11

TBD Projected Completion

TBD Projected Completion

TBD Projected Completion

TBD Projected Completion

5

CLICK FOR ATLAS MAP

PLANNED NOT STARTED

UNDER CONSTRUCTION

95

INDUSTRIAL MARKET RECAP JACKSONVILLE

2Q 2024

FUTURE OUTLOOK

TODAY'S MARKET

MONITOR ABSORPTION OF NEW CONSTRUCTION PAY ATTENTION

1,982,980 SF LEASING ACTIVITY YTD

8.14 MSF Q2 TENANTS IN THE MARKET 4.4 MSF UNDER CONSTRUCTION CURRENT

TO PLANNED, NOT STARTED CONSTRUCTION ACTIVITY

FOR MORE INFORMATION, PLEASE CONTACT

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