Retail real estate on the First Coast has largely recovered from the Covid-19 pandemic, a new report says.
The Q2 Jacksonville retail report from the local Franklin Street office shows that retail across Baker, Clay, Duval, Nassau, and St. Johns counties has a vacancy rate of 4.3%. That’s the lowest such rate since the third quarter of 2019.
“Overall, the market’s healthy vacancy and absorption rates should easily support the more than 325,000 square feet of new retail construction currently under way,” the report said.
On the investment side, the Franklin Street report notes $194 million in investment activity in the second quarter. That was a 37% increase from the first quarter and yet another sign of recovery for the sector.
The report also tracked market rental rates, foot traffic, unemployment rates, population changes and construction materials costs.
“Rising land prices and construction costs, along with a relatively limited inventory, are driving rental rates for Jacksonville retail,” said Ricky Ostrofsky, director of retail landlord services. “However, despite the current landlords’ market, demand from tenants remains exceptionally strong and we continued to see many new-to-market retailers coming to the First Coast, as well as local and regional retailers expanding and opening new locations in our market.”