NORTHSIDE -- A Jacksonville development company expects to break ground by the end of the year on 500,000 square feet of speculative industrial warehouse space.
JaxPort Industrial Park will include seven free-standing buildings ranging in size from 12,000 square feet to 17,000 square feet for sale from $115 per square foot gross, and five free-standing buildings ranging in size from 37,000 square feet to 80,000 square feet for lease from $6 to $7 net per square foot.
Like several developers before it and likely more in the coming months and years, Group IV JaxPort LLC bought the 30-acre site at State Road 9A and Alta Drive in anticipation of industrial growth, said Group IV Managing Director Bill Spinner.
"It's a tremendous place to be," Spinner said. "These are going to disappear pretty quickly."
Asian cargo carrier Mitsui O.S.K. Lines Ltd. is expected to open its East Coast hub, called the TraPac Container Terminal, in Jacksonville by the end of 2008, and that has created a demand.
Based on availability, Colliers Dickinson estimates a need for an additional 5 million to 8 million square feet of warehouse space within a year of the TraPac terminal opening. By the end of the third quarter 2007, there was about 3.3 million square feet of speculative space and 3.4 million square feet of build-to-suit industrial space somewhere in the development stage, according to Colliers Dickinson Director of Research Louis Galant.
Colliers Dickinson Vice President Bob Selton and Senior Associate Bart Hinson helped Group IV, which also includes Kurt Langsenkamp and Bob Walters, find the land for the industrial park. They will also sell and lease out the space when it is completed in the second quarter 2008.
Pieces of land like this one, two miles from the future TraPac Terminal, are becoming increasingly more difficult to come by because of scarcity and cost, Selton said. Group IV bought the land for about $106,000 per acre, and much of the surrounding land is now selling for between $165,000 and $200,000 per acre.
JaxPort Industrial Park is Group IV's largest single project to date, Spinner said. The company also owns about 500,000 square feet of industrial and office space throughout Jacksonville and 100,000 square feet of industrial warehouse space in South Florida.
Spinner said the for-sale buildings at JaxPort Industrial Park, which include fenced-in yards, will likely attract small businesses and subcontracting companies. The for-lease buildings, which include a truck court for distribution, will likely attract large national industrial users.