Jacksonville retail fundamentals were stable in Q1 2026, with vacancy at 4.9%. Net absorption totaled 91.8K SF, showing that tenant demand remained positive during the quarter. Asking rents averaged $26.12 per square foot, supported by 2.0% rent growth. Rent gains were moderate, reflecting healthy occupancy levels but also a more cautious leasing environment. Demand remained strongest for well-located centers serving growing residential areas and daily-needs consumers. Grocery-anchored, neighborhood, and service-oriented retail continued to outperform more discretionary formats. New deliveries of 200K SF were absorbed without significant disruption to overall vacancy. The market’s low vacancy rate suggests limited available quality space in preferred locations, which should continue to support rent stability. However, rent growth may remain measured as tenants evaluate costs and expansion plans carefully.

 

Key Findings

• Vacancy stayed contained, indicating that tenant demand continued to keep pace with new deliveries.
• Investment remained active, with pricing and cap rates reflecting a more selective capital markets environment.
• Jacksonville retail fundamentals remained steady in Q1 2026, supported by positive absorption and moderate rent growth.

 

Jacksonville Retail Supply & Demand Dynamics

Source: CoStar Group, Inc.

 

Jacksonville Demographics

Source: CoStar Group, Inc.

• Unemployment Rate: 4.5%
• Current Population: 1,782,524
• Households: 857,134
• Median Household Income: $85,434

 

Jacksonville’s retail market continued to benefit from steady economic and demographic growth in Q1 2026. The metro’s diverse employment base, anchored by logistics, healthcare, financial services, military, and tourism-related industries, supported consistent consumer demand. Population growth remained an important driver, as in-migration and household formation expanded the local customer base. Continued residential development across suburban areas also helped support neighborhood and convenience-oriented retail demand. Employment conditions remained broadly supportive, though higher operating costs and interest rates continued to influence business expansion decisions. Retailers remained focused on locations with strong traffic patterns, population growth, and access to higher-income households.

 

Population, Labor Force, & Income Growth

Source: CoStar Group, Inc.

 

Major Financial Institutional in Jacksonville

Source: CoStar Group, Inc.

• Bank of America
• Wells Fargo
• BBVA
• Truist

 

Jacksonville Retail Construction

Development remained active yet manageable in Q1 2026. The market had 572K SF under construction, indicating continued developer confidence in select submarkets. New deliveries totaled 200K SF during the quarter. Development activity was likely concentrated in high-growth suburban corridors where residential expansion has created demand for additional retail services. Much of the current pipeline is expected to favor necessity-based, restaurant, service, and small-shop formats rather than large speculative centers. The scale of construction remains meaningful but not excessive relative to the market’s current vacancy position. With vacancy below 5%, new supply should help meet demand in constrained trade areas. Overall, the construction pipeline appears balanced, though its impact will depend on location quality and tenant preleasing.

 

SF Construction Starts

Source: CoStar Group, Inc.

 

SF Under Construction

Source: CoStar Group, Inc.

 

Jacksonville Retail Sales

Retail investment activity in Jacksonville totaled $187 million in Q1 2026. The average price was $239,000 per square foot, while the market cap rate stood at 7.2%. Sales activity indicates that investor interest remained present, particularly for stabilized assets with durable income streams. Buyers continued to favor centers with strong occupancy, credit tenancy, and exposure to growing residential areas. The elevated cap rate reflects broader capital market conditions, including higher borrowing costs and more disciplined underwriting. Pricing remained sensitive to asset quality, lease rollover risk, and tenant credit. Grocery-anchored and necessity-based centers likely attracted the most consistent demand. Investors remained selective, but Jacksonville’s population growth and stable retail fundamentals helped support liquidity. Overall, the sales market was active but cautious, with capital focused on assets offering reliable cash flow and long-term demand drivers.

 

Sales Volume

Source: CoStar Group, Inc.

 

By the Numbers

Q1 2026 | Source: CoStar Group, Inc.

• Sales Volume: $187M
• Price Per SF: $239
• Cap Rate: 7.2%
• Vacancy Rate: 4.9%
• Rent Growth: 2.0%
• Asking Rent Per SF: $26.12
• SF Under Construction: 572K
• SF Delivered: 200K
• SF Absorbed: 91.8K