Jacksonville’s strong economic rebound and general pandemic resiliency have allowed the market to avoid some of the negative retail impacts seen in other markets over the past year. Continued population and job growth, along with a business-friendly environment have led to retailers, fast food concepts, and QSR’s looking for expansion opportunities across Northeast Florida.
Jacksonville is one of the strongest rent growth markets in Florida, enjoying a growth rate more than three times the national average. Our market also boasts a low vacancy rate of 4.1%. St. John’s County continues to lead the way both in rent growth and population growth, as well as median income levels. These strong economic trends should continue to attract development across the region.
With rising demand, landlords should be able to push for higher rates and secure tenants with less concessions such as free rent, and Tenant Improvement Allowance.
Retail investment activity is picking up with each of the past three quarters posting accelerating sales volume. Single-tenant net-leased assets by strong credit-worthy tenants such as Walgreens, and discount retailer concepts have driven much of the sales volume in Jacksonville.
Market cap rates have held relatively flat over the past two years and remain near a 15-year low. Jacksonville offers a slightly higher yield for retail investors than the national index.
“Retail in Jacksonville continued its post pandemic bounce back in Q3. Retail demand remains high as established regional and national brands continue to chase strong population growth and increasing median income in our metro. More retailers and restaurants who have already established a presence in Orlando, Tampa, and South Florida will look to plant their flag here in Northeast Florida.“
Senior Associate, Retail
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