Jacksonville, FL has seen enormous commercial real estate growth over the past few years, thanks to state-of-the-art infrastructure, a pro-business government, the availability of high-caliber construction workers and other professionals, and plenty of open land ready for building. While commercial real estate in this area is doing particularly well, other sectors such as residential and industrial real estate are posting high amounts of growth as well. Some statistics that point toward this growth in northern Florida include:
- Over 12 million square feet of new construction over the past five years
- A vacancy rate of around 5% for light industrial real estate
- A rental market that has increased in price from $4.50 to $7.80 per square foot over the past few years
Florida has seen a lot of population growth in the past several years, due to migration from other states as well as immigration from other countries. Many people move to the state for its cultural diversity, ethnic communities, business opportunities, and scenic beauty. Regardless of where a realtor is located in the state, there are many signs they can watch for that indicate growth and movement in the market.
Examples of Growth in Jacksonville, FL
One prominent company entered this metro real estate market after examining trends in the local area, which culminated in them buying a 25-acre piece of land in the Imeson Landing Business Park for new industrial businesses. This company, which was founded in 1967 and specializes in warehouses and other commercial spaces, noted that light industrial properties were an untapped market in the growing area. After extensive experience owning properties in other states such as Virginia, North Carolina, and Maryland, this company rightly recognized that Jacksonville and other parts of northeastern Florida were underserved markets with plenty of room to grow.
As more people move to the area, more investors will seek opportunities for real estate growth in the region. For example, the company mentioned above already has $50 million invested in northern Florida properties, and that will only increase as more people call the region home and seek to acquire more land in the area.
Importance of Staying Local
Many commercial and residential property owners manage their properties from afar. However, there are many advantages to staying local when you own real estate. Some of these benefits include:
- Knowing the labor market and the best ways to hire construction workers, plumbers, security personnel, and others involved in building or remodeling a property
- Being aware of what customers in your area want, from their desired marketing platforms to the number of bedrooms they wish for and everything in between
- Knowing what goods and services are lacking in the area, which allows your business to create a niche market for consumers and make more money
Property owners who stay local not only tend to know more about the communities they serve but save money as well. For example, local owners do not need to travel as often to meet with prospective buyers and are more aware of which parts of town have better deals for commercial property.
What Is a Light Industrial Property?
Buildings serving light industrial purposes have been a key point of growth in northern Florida. One advantage of investing in light industry compared to more traditional sectors is that it requires less land and fewer materials to start. Generally standing at around 3,000 to 20,000 square feet, light industrial properties are smaller than full industrial buildings and are used for such things as:
- Storing small numbers of items
- Producing and assembling furniture and metal goods
- Manufacturing clothes and shoes
In order for a city to have growth in the light industry sector, it needs to have strong economic growth overall as well as people moving in who are willing to perform manufacturing and related work. Property investors who are aware of such things are more likely to get a loan from companies like HML Solutions.
Contact Us Today
If you need financing for property in Jacksonville, contact the team at HML Solutions. We specialize in funding local projects of every size.