As the pandemic accelerated the need for warehouse space for distributors and manufacturers, industrial space has been a thriving market in Jacksonville, though space remains in short supply.
"We had never seen tenant demand like that,” Pope said. “Leasing velocity was through the roof, lots of it speculative.”With the market tighter and tighter, Pope said, users and occupiers are still leasing space, but it’s harder to secure land, get financing and build the structures. However, Pope expects the industrial sector to maintain strong demand heading into 2023.
For Marcus & Millichap Senior Associate Tripp Duke, appetite for industrial space is strong despite investors being leery about 2023’s economic outlook. Investors have to readjust when they pursue industrial space in Jacksonville. A major distributor like Amazon arriving led to other national companies realizing Jacksonville’s attractiveness in the Southeast and for shipping. There is an abundance of space coming up for companies seeking warehouse space beyond traditionally older spaces, Duke said.
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