Jacksonville Industrial Real Estate Market Highlights & Trends:
The Jacksonville industrial market started the year off strong with stiff competition for space resulting in record-low vacancy rates. The growing demand has also led to a 10% year over year increase in rents, which are expected to continuing rising. In this report, Franklin Street’s Jacksonville industrial CRE experts dive deep into the metrics and explore the trends driving the market’s growth. See highlights below and download the full report for more insights.
LOW AVAILABILITY TO KEEP MARKET TIGHT:
Availability of supply is the No. 1 challenge in the Jacksonville industrial real estate market today. Even with 3.8 million square feet fore-casted to be delivered in the next 12 months, demand is expected to outpace supply. This is ultimately a good sign for the market, but it will create challenges for tenants seeking new space.
Jacksonville’s relative affordability is one of its biggest differentiators. The market’s sale prices per square foot of $84 is notably lower than Tampa’s, at $114 and Orlando’s, at $121. Rental rates are also generally more affordable, which combined with Jacksonville’s numerous other advantages, will keep demand strong.
SOUTHSIDE AND BEACHES REMAIN HOT:
Currently, the Southside and beaches submarkets are top performers in the market, with vacancy rates of 0.2% and 0.5% respectively, as well as rents of $15.34 per square foot and $11.36 per square foot. With no additional space under construction in either submarket, vacancy rates are expected to remain some of the lowest in the market.
JAXPORT DREDGING TO SPUR DEMAND:
JAXPORT’s multi-year dredging project is set to be finalized in May 2022. This will take the depth of the federal channel from its current depth of 40 feet to a depth of 47 feet allowing for larger ships and vastly increased shipping volume. Implications for the Jacksonville market include increased demand for all subtypes of industrial real estate as well as other asset classes. JAXPORT is a 24/7 operation and the ability to use the air cargo, railways, interstate commerce trucking all have uses through our port.
Read or download Franklin Street’s full Jacksonville Industrial Real Estate Market Report below: