Well, 2011 is in full swing now, and in our great city, it seems industrial warehouse leasing is picking up, as is small businesses. There have already been several lease deals completed in Jacksonville this year ranging from 180,000 SF down to 5,000 SF, with many more in the works. The brokerage community seems to be more upbeat than last year at this time and more confident regarding what the rest of the year will bring us. What surprises me most right now, however, is all the buyers in the market. From the small business owner to the large institutional investor, they are looking to acquire property in Jacksonville. In the past year or two, there have been limited buyers in the market due to the lack of available capital and quality product on the market. Now, it seems times are changing, with more quality product becoming available, and more buyers having access to capital. SBA lending seems to be leading the way for the small business owner looking to acquire a new facility. On the investor side, more money has been raised over the past couple years from private investors looking for a stable and secure investment vehicle to place their money. While the stock market has definitely seen its gains over the past 12+ months, many investors feel it is artificially inflated and due for a course correction. With real estate prices where they are today, it seems that the upside potential is there to make a nice return.
Some buyers with whom I am currently working are each telling me a familiar story - they have been leasing for several years, and their business has made it through the recession and is still standing. They have some capital on hand for a down payment and have great relationships with their respective banks that are willing to lend. They all feel now is a great time to take advantage of the real estate market, and I have to agree. Prices have reverted to early 2000 levels, and from all I have read about economic conditions and our local real estate market, they should see slow, but steady, gains in their real estate holdings over the next several years. I hope, for their sakes, as well as mine, I am right!
Well, the market and the weather here in Jacksonville seem to be taking a turn for the better, and I personally can’t wait to get back on the golf course and get my game in shape! I hope all of you reading this are doing well, and if anyone has any questions on his/her industrial neighborhood, send me an email with your questions or give me a call. I would be happy to answer any and all questions. Until next time, have fun out there!
Jacob Horsley
NAI Commercial Jacksonville
Industrial Group
