Jacksonville’s industrial market remained active in Q3 2025, supported by strong port activity and tenant demand for large-format space. Sales volume totaled $158 million, with average pricing at $110/SF and a cap rate of 7.1%. The market delivered 666,000 SF of new space, while 6.8 million SF remains under construction, contributing to a vacancy rate of 7.4%. Net absorption was negative 766,000 SF, reflecting a slowdown in leasing activity compared to prior periods. Asking rents reached $10.09/SF, marking 3.6% year-over-year growth, led by flex and logistics properties. Key development continues in Ocean Way, West Side, and St. Johns County. Despite short-term softness, investor and tenant interest remains solid.
Jacksonville Demographics
Source: CoStar Group, Inc.
- Unemployment Rate: 3.8%
- Current Population: 1,787,812
- Households: 715,381
- Median Household Income: $84,152
Jacksonville’s economy remains strong, with robust job and GDP growth across leisure, healthcare, construction, and technology sectors. Employment rose 0.8% in H1 2025, while GDP grew 3.6% in 2024, outpacing the national average. Finance faces headwinds, losing jobs despite positive GDP growth, while tech and tourism continue to expand. Population growth, projected at 1.3% annually through 2029, supports long-term demand. Strategic investments, including a $300 million UF graduate campus and Otto Aviation’s new facility, bolster future prospects. Challenges persist in infrastructure and economic diversification, yet Jacksonville’s skilled workforce, affordable costs, and diversified economy position it as a top Florida growth market.
Population, Labor, and Income Growth
Source: CoStar Group, Inc.
Key Findings
- Jacksonville recorded $158M in industrial sales during Q3 2025, with pricing at $110/SF and cap rates at 7.1%, reflecting steady investor interest despite moderating market fundamentals.
- Construction remained elevated with 6.8M SF underway and 666K SF delivered, pushing vacancy to 7.4% as new supply outpaced demand and net absorption declined to negative 766K SF.
- Asking rents reached $10.09/SF with 3.6% annual growth, supported by resilient demand for modern logistics and flex space even as leasing activity slowed from prior-year levels.
Jacksonville Industrial Supply & Demand Dynamics
Source: CoStar Group, Inc.
Jacksonville Construction
Jacksonville’s industrial construction pipeline remained one of the most active in Florida during Q3 2025, with 6.8 million SF underway and 666,000 SF delivering during the quarter. This steady flow of new product pushed vacancy to 7.4% as supply continued to outpace demand. Activity is concentrated in major logistics hubs such as Ocean Way, West Side, and St. Johns County, where proximity to Jaxport and key transportation corridors drives developer interest. Despite negative absorption of 766,000 SF, construction persists, reflecting long-term confidence in Jacksonville’s strategic position as a growing Southeast distribution and port-oriented logistics market.
SF Construction Starts
Source: CoStar Group, Inc.
SF Under Construction
Source: CoStar Group, Inc.
Jacksonville Industrial Sales
Industrial investment activity in Jacksonville remained steady in Q3 2025, with $158 million in sales volume and average pricing at $110/SF. Buyers continued to target modern logistics assets and well-located properties near Jaxport, though underwriting remained cautious amid softening demand and rising vacancy. The market’s 7.1% cap rate reflects a recalibration from peak pricing, yet investor interest stayed resilient, supported by long-term confidence in port-driven growth. While transaction velocity moderated compared to prior years, capital remained available for stabilized, functional assets, positioning Jacksonville as a competitive Southeast industrial investment market despite near-term shifts in fundamentals.
Sales Volume
Source: CoStar Group, Inc.
By the Numbers
Sales Volume: $158M
Price Per SF: $110
Cap Rate: 7.1%
Vacancy Rate: 7.4%
Rent Growth: 3.6%
Asking Rent Per SF: $10.09
SF Under Construction: 6.8M
SF Delivered: 666K
SF Absorbed: (766K)
