Jacksonville’s industrial market is transitioning from a period of rapid expansion to one of recalibration as demand moderates and supply accelerates. Long-term tailwinds, including port-driven growth and sustained population gains, continue to support fundamentals, though vacancy has risen to 9.8% following significant new deliveries. Leasing activity slowed over the past year, reflecting softer logistics demand and the absence of mega-deals, while absorption trailed new supply. Development remains concentrated near the Port of Jacksonville, reinforcing the metro’s role as a Southeast logistics hub. Despite near-term pressure from elevated availability, rent growth has remained resilient, supported by competitive pricing, continued interest from large-format users, and location and infrastructure advantages.

 

Key Findings

• Jacksonville’s industrial market is recalibrating as elevated deliveries outpace absorption, pushing vacancy to 9.2%, but port-driven demand and population growth continue to support fundamentals.
• Development remains active with 2.3 million SF under construction following 5 million SF delivered, while leasing slowed without mega-deals, signaling a shift from expansion to normalization.
• Investor interest remains intact despite a 20% sales volume decline, supported by record pricing near $115 per SF, steady rent growth, and strong demand for port-adjacent, stabilized logistics assets.

 

Jacksonville Industrial Supply & Demand Dynamics

Source: CoStar Group, Inc.

 

Jacksonville Demographics

Source: CoStar Group, Inc.

• Unemployment Rate: 3.8%
• Current Population: 1,790,007
• Households: 716,708
• Median Household Income: $84,491

 

Jacksonville’s economy remains robust, supported by strong job and GDP growth across multiple sectors. Employment expanded 0.8% in early 2025, led by leisure, hospitality, healthcare, and construction, while GDP growth reached 3.6% in 2024. Population growth and strategic investments, including a $300 million University of Florida graduate campus and Otto Aviation’s new facility, further strengthen the market. The tech and tourism sectors are gaining momentum, offsetting headwinds in finance. With a young, skilled workforce, low costs, and a $2 billion downtown revitalization plan, Jacksonville’s diversified economy positions the metro as a prime destination for long-term industrial and commercial investment.

 

Top Tenant Leases

• Priority Tire
• Stellar Energy
• Keefe Group
• Wood Pro Building Supply

 

Population, Labor Force, & Income Growth

Source: CoStar Group, Inc.

 

Jacksonville Industrial Construction

Jacksonville’s industrial market has expanded rapidly, adding nearly 22 million SF over the past five years and increasing total inventory by roughly 15%. Development remains active, with 7.9 million SF delivered in the past year and another 2.3 million SF underway. Growth is supported by strong in-migration and rising cargo volumes at Jaxport, reinforcing demand for modern logistics space. Construction is concentrated in Ocean Way, West Side, and St. Johns County, which account for most current activity. Approximately 40 buildings delivered over the past year, more than half already leased, reflecting sustained tenant interest and developer confidence in Jacksonville’s long-term role as a Southeast logistics hub.

 

SF Construction Starts

Source: CoStar Group, Inc.

 

SF Under Construction

Source: CoStar Group, Inc.

 

Jacksonville Industrial Sales

Investor interest in Jacksonville’s industrial market remains healthy despite slower sales activity. Over the past 12 months, 240 properties traded for $1.2 billion, a 20% year-over-year decline, reflecting tighter capital markets and ongoing price discovery. Average pricing reached a record $115 per square foot, while cap rates have moved higher, averaging 7.0%. Ocean Way captured more than 40% of total volume, driven by demand for port-adjacent logistics assets. Elevated vacancy and a growing construction pipeline have encouraged more disciplined underwriting, contributing to wider bid-ask spreads. Even so, steady rent growth, absorption of 1.5 million square feet, and asking rents near $10.10 per square foot continue to support valuations, particularly for stabilized, well-located assets.

 

Jacksonville Industrial Sales Volume

Source: CoStar Group, Inc.

 

By the Numbers

Q4 2025 | Source: CoStar Group, Inc.

• Sales Volume: $654M
• Price Per SF: $115
• Cap Rate: 7.0%
• Vacancy Rate: 9.2%
• Rent Growth: 2.0%
• Asking Rent Per SF: $10.10
• SF Under Construction: 2.4M
• SF Delivered: 5.0M
• SF Absorbed: 1.5M