After closing with a record 126 straight months of economic expansion, the 2010s marked the first time in modern American history an entire decade was void of recession.
The Northeast Florida MSA was a major beneficiary of this expansion period, kicking off Q1 2010 with an unemployment rate of 11.2% and closing November 2019 with a record low unemployment rate of 2.6%. This equates to over 167,000 new jobs created in the Jacksonville MSA during the decade, a staggering increase of 29.3%.
The biggest change to the Northeast Florida commercial real estate market over that period has been the improved perception of our market in the opinion of national and international investors. Continued growth prospects for the state of Florida, the world’s 17th ranked GDP, are bright as ever, and investors looking to the state for commercial real estate yield have eyes on Jacksonville.
Forecasts for 2020 anticipate moderate but steady growth, with focus on the 2020 Presidential election. The diverse economy of Northeast Florida expects continued growth and bullish sentiment remains in the commercial real estate industry. Recent local announcements for business expansion in the financial services, healthcare, logistics and technology industries continue to drive employment and in turn the need for additional office, industrial space and retail.
Our outlook in 2020 is one of continued optimism, anchored by the belief that the market has not experienced any of the “irrational exuberance” that proceeded previous recessions. We believe that the growth curve of Jacksonville’s commercial real estate market will depend on the owner’s willingness to modernize properties to meet the requirements of today’s business. Our team at NAI Hallmark is actively consulting clients across all sectors on ways customers can extract value by being on the leading edge of these trends.