Jacksonville, FL

Jacksonville, FL – A Logistics-Driven CRE Powerhouse

Unmatched Industrial Strength

• In 2023, Jacksonville sold 10 million sq ft of industrial properties—the most in Florida and #1 nationally among 50 largest metros as a percentage of market size (6.2% vs. 3.2% US average) .

• Q1 2025 saw over 1 million sq ft of new industrial supply, with vacancy falling to 5.5% and 1.2 million sq ft net absorption.

• Nineteen new construction sales (e.g., Imeson Commerce Center at 422k sq ft, sold for $53.75M) and leases (e.g., RoadOne, Primark, Tesla-linked deals) demonstrate ongoing institutional interest.

Why it matters: Jacksonville ranks among the top U.S. industrial markets for investors—affordable, deep-port connected, and with strong rent growth (~13.7% Y/Y) .

Strategic Port & Logistics Network

• JAXPORT processes ~1.34M containers and boasts 47 ft draft, with cargo activity supporting 30,764 local jobs and $44B in statewide output .

• Blount Island Terminal handles 80% of port containers, with on-dock rail access to CSX and deep water berths—critical for distribution hubs.

• Multiple major interstates (I‑95, I‑10, I‑295) intersect here, with over $1.4 B planned for highway expansion, boosting CRE access.

Retail Market: Strong Fundamentals

• Q1 2025 retail vacancy remained steady at 4.3%, with 613k sq ft net absorption and base rents holding at $25.22/sq ft.

• Retail investment sales reached $705M, with capital volumes rising, driven largely by owner-users—even small (<10k sq ft) deals.

Why it matters: Stability in retail signals healthy consumer demand and growth potential, especially in lifestyle and grocery-anchored centers.

Office Market: Rebound Underway

• As of Q1 2025, office vacancy improved slightly to 10.3%, with 860k sq ft of leasing activity and average asking rent at $23.25/sq ft.

• Suburban locations (e.g., Deerwood Park, J. Turner Butler Blvd.) remain the most active, including marquee leases like the Jacksonville Sheriff’s Office (200k sq ft).

• Mixed-use redevelopment (e.g., new Jaguars HQ building, Riverfront Plaza downtown) reflect adaptive reuse trends.

Urban Placemaking & Mixed-Use Investments

• The Riverfront Plaza (2025) transforms the Landing site into a 9-acre park, event lawn, café, water taxi access, and trail link—for mixed-use spillover.

• Massive buildouts like the Jaguars HQ ($39M loan) and One Shipyards Place (office + retail + marina + condos) signal urban-to-commercial CRE conversion.

Macro Drivers & Resilient Outlook

• Unemployment at just 3%, projected 2.1% population growth in 2025, and rising household incomes are fueling CRE demand.

• CRE investors cite Jacksonville’s high quality of life, affordable costs, and robust industrial pipeline as major draws—despite national economic headwinds.

Jacksonville, FL offers a rare trifecta in CRE: industrial leadership, retail resilience, office revival, and urban placemaking—all backed by expanding population, strategic infrastructure investment, and a dynamic port. Whether you’re targeting warehouse, mall redevelopment, or office parks, Jacksonville deserves a spot at the top of your buy list.