Photo by Patrick Heagney
After five years of constrained supply and rapidly increasing rental rates, relief has arrived for Jacksonville’s industrial tenants.
Some 5 million square feet of speculative space has been constructed by a bevy of new (and established) developers. These deliveries have caused the market vacancy rate to swell beyond 10% (as reported by CBRE), resulting in many attractive options for tenants.
The bulk of new industrial deliveries are rear load multitenant distribution centers.
Examples include: InLight Real Estate Partners’ four buildings (900,000 square feet) near Heckscher Drive; Seefried Development’s three buildings (600,000 square feet) along Dunn Avenue; and Pattillo Industrial Real Estate’s two buildings (200,000 square feet) in the Wildlight development in Nassau County.
An uptick in the availability of affordable second-generation space further benefits tenants.
Throughout the early 2020s, few buildings were vacated due to constrained supply. However, as the market reaches an equilibrium, several attractive properties have become available, including 4300 Bulls Bay Highway (260,000 square feet); 3660 Deerpark Blvd. (360,000 square feet); and 1750 Airport Blvd. (100,000 square feet).
Jacksonville’s average industrial lease rate reached an all-time high of $8.71 per square foot in 2025. However, Jacksonville space leases at a significant discount to other markets, such as Southern California ($11.25); Northern New Jersey ($15.16); Charlotte, North Carolina ($9.56); and Miami ($16.70). That data was provided by CBRE, Colliers and CoStar Group.
CBRE Senior Vice President Gary Marcy forecasts: “The Jacksonville industrial market will continue to attract industry due to rent affordability, a vibrant labor force, and a favorable business environment.”
Geography and interstate access benefit Jacksonville, as one-day truck delivery is possible to both Miami and Atlanta, making Jacksonville a preferred location for distribution centers. GE Appliances, BMW, Mercedes, Unilever, Publix and Amazon all have sizable facilities in the market.
Newly entitled industrial land provides a refreshed supply available for build-to-suit projects.
Saxum’s 400-acre North Florida Logistics Center and Benderson’s 600 acres at Jacksonville Interstate Commerce Park and Pattillo Industrial Real Estate’s 110 acres within NorthPoint at Alta Drive are three primary examples.
The once volatile construction market has also calmed.
Craig Callahan, vice president with ARCO Design/Build, states: “Most building components are now readily available and subcontractors have ample capacity, resulting in the most favorable construction pricing and project schedules seen in recent years.”
All in all, market equilibrium eliminates uncertainty, which bodes well for a robust Jacksonville industrial market in 2026.
Anderson is vice president of new investments at Pattillo Industrial real estate.
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