Jacksonville Industrial Market Report

Port upgrade provides momentum. The Port of Jacksonville’s SSA Terminal expansion, which will almost double the shipment hub’s capacity by mid-2025, is underpinning an expected space demand resurgence for the metro’s industrial sector. While rising sea freight rates and higher debt costs have recently contributed to softening local property performance, dynamics beyond 2024 are poised to improve. With net absorption anticipated to rise in 2025, a shortage of modern, tech-equipped facilities should emerge. As of June, over two-thirds of the active construction pipeline was slated for delivery before year’s-end. This drawback in new supply is likely to direct more prospective tenants to existing facilities throughout the long term, helping chip away from local vacant inventory volumes and stabilizing the metro’s overall industrial sector metrics.