Jacksonville Industrial Market Report

Distribution space remains highly coveted. The net absorption of industrial space turned negative in the first three months of 2023, coinciding with several speculative projects coming online in Ocean Way and Riverside. The distribution subsector, however, noted strong leasing activity in the first half of 2023 as firms sought to take advantage of increasing port cargo capacity and Interstate access. This helped Jacksonville maintain an industrial vacancy rate 40 basis points below the national mean for port markets, despite ticking up to 3.7 percent. Another signal of long-term demand, the European retailer Primark announced the construction of its second U.S. distribution center in Jacksonville to anchor new stores across the southern region. This move highlights the metro’s strategic location, keeping vacancy in Jacksonville lower than other port markets.