Jacksonville Industrial Market Report

Port renovations continue, paving the way for future industrial growth. Home to Florida’s largest container port by volume, Jacksonville’s harbor continues to undergo expansions. Last year, a project to deepen the harbor concluded, an investment that will soon reach full potential as JaxPort raises power lines over the St. Johns River to increase air draft clearance and elevate port activity. The power lines project is slated for completion by 2026, ensuring a long-term rise in port capacity and traffic. The metro is well-positioned to receive this long-term growth. An elevated construction pipeline, particularly in port-adjacent submarkets like West Side, will be almost entirely matched by positive net absorption, keeping the vacancy rate 250 basis points below the year-end 2019 mark in 2023. Metro availability will be the third tightest in the U.S. and the lowest among the five major Florida markets, retaining cost advantages over those same metros. Consequently, Jacksonville has seen high leasing activity from expense-conscious firms.