FRIDAY
November 26, 2021
What’s Trending: Electric vehicle maker considering Jacksonville PAGE 2
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JACKSONVILLE
COMMERCIAL DEVELOPMENT OUTLOOK JACKSONVILLE
REBOUND AND EXPANSION Daily Record After the pandemic shutdown in March 2020, the commercial real estate market rebounded sharply in Northeast Florida led by industrial and retail tenants.
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BY KAREN BRUNE MATHIS EDITOR
ortheast Florida’s commercial real estate market has been adjusting to the growth and demand resulting from the pandemic, including changes in the office workplace. Some areas, like industrial and retail sectors, are seeing record vacancy rates. The pandemic began in March 2020. The National Bureau of Economic Research soon announced, in June, that the 128-month economic expansion had ended in February. The official recession didn’t last long. In July 2021, the bureau announced the recession ended in April 2020. That meant the two-month downturn was one of the deepest, but also one of the briefest, in U.S. history. The Reuters news agency reported the U.S. economy contracted at a record average annualized rate of 19.2% from its peak in the fourth quarter of 2019 through the second quarter of 2020, confirming that the COVID-19 recession was the deepest going back to 1947. It also reported the pace of recovery rebounded at a historic average rate of 18.3% between the second and fourth quarters of 2020. Businesses and economists are SEE REBOUND, PAGE 6
JACKSONVILLE What the experts are saying INDUSTRIAL
MULTIFAMILY
“Over the last few years, Jacksonville saw increasing interest from large big-box users who view the region as an ideal location to distribute goods throughout the Southeast.” Cushman & Wakefield
“Jacksonville has long been supported by healthy market fundamentals consisting of rent growth, population growth and continuous multifamily value appreciation.” Franklin Street
OFFICE
CAPITAL MARKETS
“Jacksonville is also increasingly landing on the radar of companies in the finance, insurance and real estate (FIRE) and banking sectors and there has been an uptick in leasing to engineering, architecture, construction and building materials companies.” Avison Young RETAIL “Continued population and job growth, along with a business-friendly environment, have led to retailers, fast-food concepts and QSRs (quick-service restaurants) looking for expansion opportunities across Northeast Florida.” NAI Hallmark
“Income-producing industrial assets are probably the most sought-after product type in commercial real estate. Nearly every property we offer for sale results in multiple offers with many resulting in bidding wars and execution above asking price.” Colliers ECONOMY “Demand for labor remains high and most signals suggest the key problem firms face is finding workers. Thus, employment growth should remain above 3% through 2022. Longer-term hiring in the U.S. will be restrained by a shrinking labor force.” CBRE
JACKSONVILLE DISTRIBUTION HUB The 278,237-square-foot Amazon sortation center at 13450 Waterworks St. at southwest POW-MIA Memorial Parkway and Waterworks Street at AllianceFlorida at Cecil Commerce Center. The facility is one of several e-commerce projects driving growth in Northeast Florida.
OUTLOOK
INVESTORS
“This year, Jacksonville led the nation in terms of professional in-migration. The influx of new residents, in conjunction with proximity to a major port and highway connecting Florida and the Southeast, will likely continue to attract a wide variety of industrial users.” JLL
“Moving forward, an increasing number of institutional owners will begin incorporating ESG (environmental, social and governance) initiatives into their portfolios with a focus on reducing carbon footprints and improving overall wellness for occupiers, although the trend will likely be slow to adapt.” Avison Young
MARKET-BY-MARKET COMMERCIAL OUTLOOKS, PAGE 3
COMING IN DECEMBER
Looking ahead and looking back Our annual economic forecast and top deals and newsmakers issues. VOLUME 109, NO. 9 • TWO SECTIONS