Jacksonville, Florida, is a thriving, business-friendly metro area that is ripe for commercial real estate investment. As the largest city by area in the contiguous United States, Jacksonville hosts a significant inventory of commercial properties, making it an attractive destination for investors seeking prime real estate opportunities.
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Economic Foundation
Jacksonville’s economy is diverse and robust, supported by industries such as finance, healthcare, transportation, military, and an emerging tech scene. The city’s commercial and financial center features modern skyscrapers that define its skyline and support a dynamic business environment. Jacksonville is known for its affordable yet luxurious lifestyle, making it a desirable location for both businesses and residents.
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Regional Breakdown
Jacksonville has experienced steady population growth, reflecting its appeal as a place to live and work. The city’s quality of life, diverse economy, and affordability continue to attract families and young professionals alike.
- Population: Over 971,000 residents in the city of Jacksonville and more than 1.7 million in the metropolitan area.
- Metro Composition: Includes the counties of Duval, St. Johns, Clay, Nassau, and Baker.
- Largest Cities: St. Augustine, Fernandina Beach, Middleburg, and Green Cove Springs.
- Growth Projections: Population expected to grow by nearly 53% by 2060.
- Cost of Living: 6% lower than the national average.
- Median Income: Household income is $77,583, and per capita income is $41,570, both higher than the state averages.
- Median Age: 39.3 years.
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Job Market Dynamics
Jacksonville’s job market is expanding across various sectors, driven by a mix of established industries and innovative startups. The city’s economic growth is supported by significant government initiatives aimed at attracting new businesses and fostering a favorable environment for startups.
- GDP: $101.4 billion, up from $59 billion in 2011.
- Unemployment Rate: 3.1% with an employed labor force of 862,300.
- Key Industries: Advanced manufacturing, aviation and aerospace, finance and insurance, information technologies, life sciences, and logistics and distribution.
- Major Employers: Naval Air Station Jacksonville, Baptist Health, Mayo Clinic, Duval County Public Schools, Bank of America, and the City of Jacksonville.
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Industrial Market Insights
Jacksonville’s industrial market is robust, with high demand and rent appreciation driven by population growth and a strong local economy. Developers are meeting tenant demand with speculative projects, keeping the market active.
- Inventory: 121,107,408 SF
- Vacancy Rate: 7.1%
- Absorption: 2,958,299 SF (YTD)
- Key Leases: Sam’s Club, Total Distribution, HD Supply, GenPlant
- Under Construction: 5,729,739 SF
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Office Market Dynamics
The Jacksonville office market is mixed, with a slight decrease in overall vacancy rates but challenges in Class B asset vacancies. Suburban markets are performing better than the Central Business District, with steady leasing activity and minor increases in Class A rents.
- Inventory: 21,946,746 SF
- Vacancy Rate: 19.7%
- Absorption: -25,309 SF (YTD)
- Key Leases: Merastar Insurance Company, Tech Mahindra
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Retail Market Trends
Jacksonville’s retail market is experiencing ups and downs, with steady expansion of small brands and restaurants. Larger spaces face challenges finding tenants, but the market remains attractive with stable rental rates and positive sales sentiment.
- Inventory: 100,647,058 SF
- Vacancy Rate: 4.2%
- Rent Growth: 11.5% (current quarter)
- Key Leases: Bargain Bins, ACE Hardware, D Bats
- Under Construction: 859,541 SF
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Multifamily Market Overview
Jacksonville’s multifamily market is resilient, with robust absorption rates despite a record supply of new units. The city’s population and job growth make it a leading destination for multifamily investments.
- Total Housing Units: 732,172
- Multi-unit Inventory: 183,043 units
- Vacancy Rate: 7.3%
- Effective Rent Per Unit: $1,508
- Units Under Construction: 20,574
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Conclusion
Jacksonville is a dynamic city with ample opportunities for commercial real estate investment. Its diverse economy, strategic location, and quality of life make it an attractive market for investors across various sectors. Whether you’re looking to invest in industrial, office, retail, or multifamily properties, Jacksonville offers a promising environment for growth and profitability.
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