Jacksonville Industrial Market Report

Construction surge continues as leasing activity picks up. During the 12 months ended in March, elevated new supply coincided with softening demand, pushing Jacksonville’s vacancy rate up by 150 basis points. Pressure on the metro’s fundamentals will likely be short-lived, however, as the total square footage leased in the first five months of 2025 marked a roughly 50 percent increase compared with the prior five-month period. Meanwhile, the Jacksonville Port continues to expand its capabilities, having completed the first phase of a $60 million berth project in February. Another berth is under construction and set to deliver in 2027. While a notable gain in import volume has yet to materialize, these upgrades are designed to support increased efficiency for auto manufacturers and provide additional capacity to accommodate growth in the years ahead. The anticipated added freight volume from these investments warrants ongoing industrial space additions, despite the short-term pressure on vacancy. Even so, Jacksonville’s vacancy rate is expected to remain among the lowest 20 percent of major metros by year-end.