X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

ORLANDO-Orlando, Tampa and South Florida will be the beneficiaries of $43 million in new construction after Duke-Weeks Realty Corp. sells off its 980,983-sf office/industrial portfolio in Jacksonville, FL early next year. The $43 million is an estimated value of the REIT’s 10 fully-leased buildings at the Jacksonville International Tradeport, Centurion Square and the Office Center at Southpoint.

Duke-Weeks is leaving the Jacksonville area to focus on its three largest Florida markets–Orlando, Tampa and South Florida. The REIT feels the North Florida market is too restricted to create a steady demand for the company’s ongoing projects, according to Duke-Weeks vice president Forrest Robinson. In a published statement, Robinson, who is based in Tampa, calls Jacksonville “a great and growing city but not large enough to capitalize on the Duke-Weeks delivery system.”

In Orlando, the company is building a 61,000-sf industrial structure that is 100% pre-leased for 15 years to Chase Manhattan Bank. Duke-Weeks will also be breaking ground next year on a 450,000-sf suburban office campus for Chase in Tampa, FL, 80 miles west of Downtown Orlando.

The REIT’s decision in Jacksonville dovetails with the company’s October announcement to build an additional 3.3 million sf of new developments valued at $137 million in the Southeast and Midwest. The company expects an 11.3% return on those properties.

Besides the Jacksonville portfolio, Duke-Weeks is also selling $600 million worth of other properties and undeveloped land across the country. The proceeds will be used to fund upcoming development projects. The divestiture strategy evolved last year after the company realized it could make a 20% to 25% short-term return on properties it builds and later sells for a profit.

The company owns 104 million sf of office, industrial and retail assets. The REIT also owns or controls 4,000 acres that can support 60 million sf of future development.

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

Once you are an ALM digital member, you’ll receive:

  • 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
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt. NET LEASE 2020Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.