Ernie Saltmarsh

|

JACKSONVILLE, FL—Significant population growth continues topropel the retail market in this region. The growth has encouragedthe start of several new, large-scale, mixed-use developments inDuval, St. Johns and Nassau Counties, and enticed new brands andretailers to enter the marketplace, Ernie Saltmarsh, a seniorassociate with Colliers International in Jacksonville, tellsGlobeSt.com.

|

"As the largest city in the contiguous United States based ontotal land size, Jacksonville has plenty of room for newdevelopment, which has taken place at a healthy rate over the lastfew years," he says. "Supply has kept up with demand and resultedin strong, yet stable, rents for landlords. The St. Johns TownCenter remains the epicenter for retail for the region, however newdevelopments are under construction that will be similar in termsof quality and tenancy."

|

Saltmarsh points to the nearly $560 million invested in retailassets during 2019, a 64% increase in sales from the year prior, asevidence of investor interest. Of the $560 million, about $304million was spent acquiring shopping centers and $256 million onsingle-tenant net lease assets, he says. "On the single-tenant netleased side, quick-service restaurants and full-service restaurantswere by far the most sought after asset types, accounting for 32%and 18% of total sales volume, respectively."

|

Colliers recently closed the sale of Mandarin Central, a63,346-square-foot shopping center located at 11018 Old SaintAugustine Road in Jacksonville. Milestone Properties, Inc. ofDelray Beach, FL sold the asset to Mandarin Central Plaza, LLC foran undisclosed price, but the property was originally listed for$9,950,000.

|

Constructed in 1985 on seven acres, Mandarin Central was 94%leased at the time of sale to a mix of restaurants andservice-oriented tenants including: Dollar General, Pizza Hut andSalento Steakhouse.

|

Saltmarsh predicts the rest of 2020 won't be markedly differentfrom 2019.

|

"There remains significant interest from investors seekingquality, desirably located, anchored shopping centers, and demandby private investors for single-tenant net leased assets is at anall-time high," he says.

|

"As owners continue to reevaluate their portfolios for the longrun, it creates opportunities for others, including 1031 Exchangebuyers who are flocking to Florida and other income tax-free statesto maximize their return. In terms of the coronavirus and itseffect on the market, it is too early to predict the impact it willhave locally. It will not likely have a major impact on investmentsales, however it does appear that it will affect some retailersmore than others."

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.