Florida’s Industrial & Flex space market has done it again! If writing about rent growth in the Sunshine State could be set to music, it would be a case of the same song, second verse. An examination of all markets in the country with a total Industrial and Flex space inventory of at least 100 million square feet shows that Jacksonville was among the top 10 markets in the nation.
Jacksonville’s accelerated pace of demand is tied to its deep-water port and its proximity to a major industrial hub in Atlanta. It is also the only Florida market in the ranking that has seen an increase in demand in the last year, with absorption, or the change in the number of occupied squared feet, up nearly 25% in that time.
Business owners looking for new locations continue to be surprised by the higher leasing rates and the lack of availability. This is resulting in businesses needing to prepare financially and start their search processes with their commercial brokers farther in advance to ensure a successful outcome. Business owners with leases in place should be prepared for tougher rate negotiation process with their landlords when it comes time for renewals.
It is worth noting, eight of the top 10 markets are still in the Sun Belt. That’s quite a feat given that an increasing percentage of Industrial and Flex space demand has been shifting to markets in the North and Midwest, but it is a testament to the impact of population growth into warmer climates since the beginning of the pandemic.