Jacksonville industrial real estate market reports

Q3 2022

Jacksonville’s industrial development is on fire in the Northside submarket with just below 5.5 million square feet (msf) under construction. Leasing activity remains robust despite concerns of economic uncertainty across the industrial market. Investment sales are up significantly as investors look for safe havens to park capital during a potential economic slowdown.

8.3 msf

Under construction

Jacksonville’s industrial market has a record number of projects under construction totaling 8.3 msf, 14% of which has been pre-leased. As vacancy rates continue to sit at record lows of 3%, a wave of new development is on the horizon to satisfy the increased demand throughout the market.

1.4 msf

Net absorption

Net absorption across the industrial market is not showing signs of slowing down anytime soon. The third quarter resulted in a strong 1.4 msf of positive net absorption, bringing the yearly total to just over 3 msf. Large move-ins for the quarter included Dollar General, Shoreline Logistics, and Henry Schein in the third quarter.

$6.43 psf

Direct asking rent

Industrial demand across the Jacksonville market is at a record-breaking high, forcing landlords to raise asking rents. The third quarter saw asking rates increase by 12% from the second quarter to $6.43 per square foot (psf) NNN.

4.7 msf

Availabilities

Industrial availabilities remain at all-time lows. There is 8.3 msf under construction, which will hopefully bring an influx of availability online in 2023. 

3.2%

Vacancy

Jacksonville’s vacancy rate remained unchanged during the third quarter at 3.2%. As demand continues to outpace supply, vacancy is expected to remain low for the near future.

$87 psf

Investment sales

Industrial investment sales are up 22% from the same time in 2021. As allocations and capital deployment reach their final stages of the year, the industrial sector may still provide buyers with the greatest safety and allow sellers to maximize their profit.

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