Jacksonville attracts worldwide businesses with heavy interest in logistics, manufacturing, healthcare and IT innovation.
As Northeast Florida’s main logistics and distribution hubs, Jacksonville continues to see strong momentum in the industrial market from both national and international companies. In recent quarters, the market has seen an uptick in demand and strong rent growth hovering 200 basis points above the historical average. Construction of new manufacturing facilities has given the metro some of the highest levels seen this cycle which could increase supply-side pressure in years to come.
While there has been an increase of office-using employers in recent years, momentum has slowed as the financial industry, and professional and business services decline in business growth. Despite these softening fundamentals, 2019 had some solid office transactions in early Q2 giving business owners and investors confidence in the market.
The wave of new business coming into the metro is having a positive effect on the retail market as consumer spending continues to grow fueled by increased disposable income. St. Johns County in the southern portion of Jacksonville boasts the highest median incomes. This attracts a wide variety of tenants including several new-to-market specialty grocers and niche retail chains. Retail sales volume has soared well above the historical average, with over $530 million in transactions. Price per SF has enjoyed strong growth in recent years, and cap rates have held in the mid-7% range.