Franklin Street’s Steven McAdoo, Senior Director of Multifamily Investment Sales, recently chatted with Jacksonville Business Journal about Franklin Street’s latest report on Jacksonville Multifamily market and what’s ahead for the coming months.
See highlights from the article below:
Fundamentals remain extremely strong across all segments of multifamily assets in Jacksonville during Q3, according to a new report from commercial real estate brokerage Franklin Street.
The Jacksonville vacancy for multifamily properties has made a correction since hitting historic lows in late 2021. With the delivery of new supply, the vacancy rates have risen back to normal levels. The average vacancy is now sitting at 7.4%, up from 5% in Q2 of 2021, according to the report.
“Multifamily in Jacksonville remains under supplied, especially for market rate affordable housing,” said Steven McAdoo, Franklin Street’s director of multifamily investment sales. “Paired with persistent, unmet demand, this is creating significant opportunity for rent growth in our market.”
Jacksonville will stay in the top 10 markets for annual rent growth, and Franklin Street predicts growth will continue but at a slower rate than in the past.
“The strong demand is also spurring a tremendous amount of new development, with approximately 10% of the market’s inventory currently under construction,” McAdoo said. “While all of this new supply may temporarily impact vacancy rates, we expect new inventory to be quickly absorbed as our market continues to see robust population growth. Jacksonville was able to easily absorb inventory expansion of approximately 20% over the past five years.”