Jacksonville Industrial Real Estate Draws Increased Interest from Out-of-Town Investors

Jacksonville Sees Surge in Out-of-Town Industrial Real Estate Investors

Jacksonville is experiencing a notable increase in interest from out-of-town investors, particularly in the industrial real estate sector. Over the past year, firms from states such as California, New York, Pennsylvania, and Texas have been actively purchasing multiple industrial properties in the area. This trend is highlighted by the dominance of industrial sales as a significant portion of the 2024 real estate market.

Who are the Investors?

The surge in acquisitions is led by several major investment firms. Among them, New York-based Stonepeak Partners and Texas-based Hillwood stand out. These firms are not just buying one property; they are capitalizing on the opportunities in Jacksonville by amassing portfolios that include multiple locations.

What Properties are Being Purchased?

In 2024, half of the top 15 real estate sales in Jacksonville were industrial properties. The following are some of the notable transactions:

• Stonepeak Partners made a significant investment, acquiring two properties in North Jacksonville for around $60 million. Their acquisition included seven total properties, contributing to a portfolio valued at approximately $190 million.
• Hillwood purchased a massive 1-million-square-foot warehouse in the Florida Gateway Logistics Park for $91.73 million. This recent construction on the west side of Jacksonville is expected to enhance the logistics capabilities of the area.
• INDUS Realty Trust acquired the Primark distribution center at Imeson Park for $62.85 million. This facility is vital for Primark’s operations in the U.S., featuring state-of-the-art logistics features.

Where are These Properties Located?

The investments are primarily concentrated in areas like North Jacksonville and West Jacksonville. Specific sites include:

• Properties on Whittaker Road and Canada Drive
• The Florida Gateway Logistics Park on Pritchard Road
• The Primark facility located at Zoo Parkway

When Did These Deals Take Place?

Notable transactions occurred throughout 2024, with Stonepeak’s significant acquisitions taking place in November and Hillwood’s purchase being finalized in late May. These dates reflect an ongoing trend of heightened activity in the industrial sector as businesses seek to establish a foothold in Jacksonville.

Why are Investors Flocking to Jacksonville?

Several factors are driving this investment frenzy in Jacksonville. The city’s strategic location offers vital connectivity via major railways and highways, making it an attractive hub for logistics and distribution. Moreover, the growing demand for industrial spaces amidst the booming e-commerce sector has heightened interest in such properties.

As Jacksonville continues to evolve as a key player in the industrial real estate market, the involvement of out-of-town investors signifies not only confidence in the local economy but also a promising future for industrial development. Companies are recognizing Jacksonville’s potential, and as supply chains adapt to new demands, further investments are likely to follow.

With 2024 shaping up to be a landmark year for Jacksonville’s industrial real estate market, it will be interesting to monitor how these investments contribute to the city’s growth and development in the coming years.