The Jacksonville Commercial Real Estate Market

Dec 14, 2023

As Florida’s most densely populated city, Jacksonville represents a thriving, business-friendly metro ripe for commercial real estate investment activity.

Jacksonville is the largest city by area in the lower 48 states and hosts a sizable CRE property inventory within its limits. Investors and organizations look to Jacksonville as a premier investment area to find and acquire commercial properties. Crexi is proud to connect these property seekers with every tool needed to find the best-suited Jacksonville commercial real estate for their needs.

Jacksonville commercial brokers and agents representing commercial property in Jacksonville rely on Crexi’s robust lead management and software tools to maximize their business and quickly engage with buyers and tenants. Thanks to Crexi’s broker tools suite, Jacksonville brokers can save time, engage with thousands of nationwide leads, and close more deals.

To date, Crexi’s commercial real estate tools have helped brokers close more than $650 billion in asset value and market more than $5.5 trillion in investments.

Crexi proudly serves Jacksonville, Orange Park, Jacksonville Beach, Callahan, and Duval County’s entirety as the region’s fastest-growing digital CRE platform.

The State of Jacksonville Commercial Real Estate

Situated along the Atlantic coast of northeastern Florida, Jacksonville is the most populous city in the state. It holds the distinction of being the largest city by area in the United States.

This vibrant metropolis is renowned for its extensive park system, world-class fishing, historic neighborhoods, and a variety of eclectic museums that add to the city’s charm. A city where southern hospitality meets modern living, Jacksonville offers a lifestyle that caters to diverse tastes and preferences.

The city’s economic base is as varied as its cultural offerings. It serves as a large commercial and financial center, with modern skyscrapers defining its skyline, giving it a distinct “northern” feel compared to other large cities in Florida. Furthermore, Jacksonville is also known for its affordable yet luxurious lifestyle, making it an attractive destination for those seeking a balance between cost of living and quality of life.

With a population of nearly one million, the demographic landscape of Jacksonville is as varied as its geographical one. From beachfront homes to amenity-filled suburbs, from rural farming areas to quaint historic Main Streets, the area offers many options for living and investing.

Jacksonville, Florida, is more than just a city. It’s a melting pot of cultures, a hub of economic activity, and a haven for those seeking a unique blend of Southern charm and modern conveniences – all under the warm Floridian sun.

Jacksonville Regional Breakdown

Jacksonville has been experiencing a steady population growth trend over the years. This growth is a testament to the city’s appeal, with more and more people choosing to call Jacksonville their home. The city’s diverse economy, quality of life, and affordability are significant draws for both families and young professionals alike.

But it’s not just about numbers – this growth has contributed to a dynamic, vibrant community that’s rich in culture and opportunities. While rapid growth can often bring challenges, Jacksonville has shown resilience and adaptability, maintaining its charm and high living standards.

Over 971,000 reside in the city of Jacksonville and more than 1.7 million in the metropolitan area.
Metro Jacksonville comprises the counties of Duval, St. Johns, Clay, Nassau, and Baker.
Largest cities include St. Augustine, Fernandina Beach, Middleburg, and Green Cove Springs.
Population is projected to grow by nearly 53% by 2060.
Cost of living in Jacksonville is 6% lower than the national average.
Median household income is $77,583 and per capita income is $41,570, both figures higher than the amount in Florida.
Median age is 39.3, about 90% of the figure in the state.

Jacksonville Job Market

Jacksonville has shown resilience in its economic growth, with a strong job market that continues to expand across various sectors. Key industries driving this growth include the military presence, financial services, healthcare, transportation, and a burgeoning tech scene. Major employers in the city range from naval stations to Fortune 500 companies, contributing to a vibrant business landscape.

Government initiatives have also played a crucial role in spurring Jacksonville’s economic growth. The city has been proactive in attracting new businesses and supporting local startups, fostering an environment conducive to innovation and entrepreneurship. This balanced mix of established corporations and innovative startups gives Jacksonville a dynamic edge, promising ongoing economic expansion and job growth.

Jacksonville GDP is $101.4 billion, up from $59 billion in 2011, according to the St. Louis Federal Reserve.
Unemployment rate is 3.1% (BLS October 2023) with an employed labor force of 862,300.
Targeted industry sectors are advanced manufacturing, aviation and aerospace, finance and insurance, headquarters, information technologies, life sciences, and logistics and distribution.
Largest employers are Naval Air Station Jacksonville, Baptist Health, Mayo Clinic, Duval County Public Schools, Bank of America, and the City of Jacksonville.
WalletHub ranks Jacksonville as the 2^nd best place to start a business.
The metro area is also surging as a destination for tech workers, ahead of traditional tech hubs like San Francisco and Seattle.
About 24% of the residents hold a bachelor’s degree and 13% hold a postgraduate degree.
The metro area is home to several large educational institutions, including the University of North Florida, Florida State College at Jacksonville, and Jacksonville University.
The transportation infrastructure is extensive and diverse, with key interstates like I-95 and I-10, the busy JAXPORT seaport, Jacksonville International Airport, and a comprehensive public transit system including the First Coast Flyer Bus Rapid Transit and the Skyway people mover.

Jacksonville Industrial Market

Jacksonville’s industrial market is witnessing solid fundamentals, with high demand and rent appreciation, driven by healthy population growth and a robust local economy. Several major occupancies have significantly reduced the vacancy rate, while the sale of investment-grade properties remains active.

Developers are undertaking many speculative projects, aiming to meet the surging tenant demand. With the completion of numerous construction projects, the vacancy rate has slightly increased, providing immediate leasing options for out-of-market tenants, with demand projected to remain strong throughout the year.

Jacksonville Industrial Market Overview (CBRE Q3 2023)

Inventory: 121,107,408 SF
Vacancy rate: 7.1%
Absorption: 2,958,299 SF (YTD)
Key leases by tenant: Sam’s Club, Total Distribution, HD Supply, GenPlant
Deliveries: 487,000 (Q3 2023)
Under construction: 5,729,739 SF
Largest submarkets: Westside, Northside, Southside

Crexi Insights

These are the most recent Jacksonville industrial lease and sales trends from Crexi Insights (as of December 2023):

For Lease (active)

Asking rate/SqFt (median): $12 per year
Median SqFt/listing: 25,400
Days on market: 196
Total listings on Crexi: 209 spaces

For Sale (active)

Median asking price: $1.74 million
Price/SqFt: $101
Asking cap rate: 7.1%
Days on market: 117
Total listings on Crexi: 45

Sales Comps (past 12 months)

Median sold price: $912,000
Sold price/SqFt: $89
Total sales volume: $1.65 billion
Sold cap rate: 6.4%
Median SqFt sold/transaction: 11,500
Total SqFt sold: 6.02 million
Days on market (median): 338

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Jacksonville Office Market

The Jacksonville office market is showing a mixed performance. Overall vacancy rates saw a slight year-over-year decrease. However, an increase in Class B asset vacancies hinted at a more complex scenario.

Leasing activity was strong yet slightly down due to economic uncertainty, with suburban markets outperforming the Central Business District. There is a balance of leasing across Class A and B assets. Despite potential economic headwinds, asking rents remained steady with a minor increase in Class A assets.

Jacksonville Office Market Overview (Cushman & Wakefield Q3 2023)

Inventory: 21,946,746 SF
Vacancy rate: 19.7%
Absorption: -25,309 SF (YTD)
Key leases by tenant: Merastar Insurance Company, Tech Mahindra
Under construction: 0 SF
Largest submarkets: Northbank, Deerwood Park, Baymeadows, Southpoint

Crexi Insights

For a fresh perspective on Jacksonville’s office real estate market, consider the information provided by Crexi Insights. The following data from December 2023 offers a holistic analysis of the current sales and leasing trends across the city’s office property sectors.

For Lease (active)

Asking rate/SqFt (median): $19 per year
Median SqFt/listing: 2,055 SF
Days on market: 301
Total listings on Crexi: 605 spaces

For Sale (active)

Median asking price: $1.44 million
Price/SqFt: $198
Asking cap rate: 7.2%
Days on market: 161
Total listings on Crexi: 57

Sales Comps (past 12 months)

Median sold price: $342,000
Sold price/SqFt: $158
Total sales volume: $238 million
Sold cap rate: 9.3%
Median SqFt sold/transaction: 2,360 SF
Days on market (median): 271

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Jacksonville Retail Market

The retail market in Jacksonville is seeing a fair share of ups and downs. While existing brands, tiny restaurants, and health/wellness concepts are expanding steadily, larger spaces above 5,000 square feet face challenges in finding users. This trend is expected to persist through the upcoming quarters.

The market has experienced an increase in rental rates, but this has been coupled with a slight rise in vacancy rates, indicating potential hurdles ahead amid economic uncertainty. The sales price per square foot has also seen a modest uptick, reflecting positive market sentiment, while stable cap rates have kept Jacksonville attractive for investors nationwide.

Jacksonville Retail Market Overview (NAI Hallmark Q1 2023)

Inventory: 100,647,058 SF
Vacancy rate: 4.2%
Rent growth: 11.5% (current quarter)
Key leases by tenant: Bargain Bins, ACE Hardware, D Bats
Under construction: 859,541 SF
Submarkets with highest rents: Butler/Baymeadows, Beaches, Mandarin, St. Johns County

Crexi Insights

Jacksonville retail lease and sales trends from Crexi Insights (as of December 2023):

For Lease (active)

Asking rate/SqFt (median): $20 per year
Median SqFt/listing: 2,491 SF
Days on market: 449
Total listings on Crexi: 569 spaces

For Sale (active)

Median asking price: $1.75 million
Price/SqFt: $341
Asking cap rate: 6.0%
Days on market: 151
Total listings on Crexi: 117

Sales Comps (past 12 months)

Median sold price: $635,000
Sold price/SqFt: $138
Total sales volume: $278 million
Sold cap rate: 5.3%
Median SqFt sold/transaction: 4,562 SF
Days on market (median): 191

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Jacksonville Multifamily Market

The Jacksonville multifamily market is resilient and growing. With the area’s rapid population expansion, now being one of the top 10 fastest-growing metro areas in the US, Jacksonville is seeing robust absorption despite a record supply delivery. This is mainly due to an influx of people and businesses into Northeast Florida.

The region’s impressive population growth and solid employment landscape have elevated Jacksonville to a leading position for multifamily investment nationwide. Recent major developments, such as the Gateway JAX downtown redevelopment project and Mayo Clinic’s North Campus expansion, further bolster the prospects for sustained population and job growth, as well as demand for apartments in Jacksonville.

Jacksonville Multifamily Market Overview (NAI Hallmark Q3 2023)

Total housing units: 732,172
Multi-unit inventory: 183,043 units
Vacancy rate: 7.3%
Effective rent per unit: $1,508
Market rent change: -3.6%
Units under construction (through 2025): 20,574
Submarkets with highest occupancy: Downtown (95.1%), St. Augustine/St. Johns County (95.0%), Southside (93.6%)

Crexi Insights

Here are the most recent Jacksonville multifamily Insights from Crexi (as of December 2023):

For Sale (active)

Median asking price: $670,000
Price/SqFt: $225
Price/Unit: $282,000
Asking cap rate: 6.3%
Days on market: 108
Total listings on Crexi: 14

Sales Comps (past 12 months)

Median sold price: $364,000
Sold price/SqFt: $126
Sold price/unit: $131,000
Total sales volume: $600 million
Sold cap rate: 8.0%
Total SqFt sold: 3.94 million
Days on market (median): 97

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Learn more about the Jacksonville commercial real estate market with Crexi Intelligence.