Engage Jacksonville

1Q 2022

ENGAGE JACKSONVILLE MSAOVERVIEW

WELCOME TO WHAT’S NEXT cushmanwakefield.com

WHY JACKSONVILLE?

Source: U.S. Census, Bureau of Labor Statistics, 2020

LABOR POOL & TALENT • Population growth in 2020 was almost double the national average • Jacksonville has a strong pipeline of skilled tech workforce with more than 13,000 IT graduates each year • 150,000 students in a 100 mile radius • Home to four military bases and a strong pipeline of talent

BUSINESS ENVIRONMENT • Diversified economy • Cost-friendly location for business • Business friendly regulatory environment • Top 20 Port in the U.S. with operations spread over three separate facilities

AFFORDABILITY & HOUSING • Cost of living half of larger gateway markets • Median home price is 58% less than the national average • No state income tax • Low corporate tax rate

WORK/LIFE BALANCE • World class beaches and the St. Johns River • Top rated golf courses including the PGA tournament • Professional football and several minor league sports teams • 23 national, state and local parks that take people to the beaches, marshes and area wetlands

ENGAGE JACKSONVILLE MSA OVERVIEW | 2

WHY JACKSONVILLE?

ADVANCED MANUFACTURING

FINANCIAL SERVICES The region’s talent support a wide range of companies in financial services, including banking, investments, insurance, mortgage and cybersecurity. Leading hospitals and cutting edge medical companies have long located in Northeast Florida to tap into its skilled workforce and sizeable consumer base. IT AND INNOVATION The region is considered one of the fastest growing regions for high tech jobs, fed by the solid pipeline of military veterans and graduates from area universities. HEALTHCARE & LIFE SCIENCESS

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Manufacturers find success in Jacksonville due to our infrastructure, competitive business climate and access to talent including 3,000 retiring veterans annually. TRANSPORTATION AND LOGISTICS Two deep-water ports, 3 major interstates (I-95, I-10 and I-295), 3 major railroads and an international airport system make Jacksonville one of the best cities for logistics infrastructure in the Southeast.

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POPULATION GROWTH 7.0% 5-YEAR 2020-25

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AVERAGE INCOME $85,500

S T . J O H

2020 Jacksonville Total Population 1.6 MILLION

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RENTER OCCUPIED HOUSING 35.4%

LABOR FORCE 980,000

Jacksonville is the place where talent and companies thrive. The diverse workforce can support business needs in an array of industries and specialties.

POPULATION AGE 20-34 20.6%

BACHELOR OR HIGHER 24.1%

Source: Moody’s, 2021

ENGAGE JACKSONVILLE MSA OVERVIEW | 3

EDUCATION FUNDAMENTALS

TOP COLLEGES BY ENROLLMENT (2020) FLORIDA STATE COLLEGE OF JACKSONVILLE

EDUCATIONAL ATTAINMENT

23,700

15,800

UNIVERSITY OF NORTH FLORIDA

6,500

ST. JOHNS RIVER STATE COLLEGE

3,200

JACKSONVILLE UNIVERSITY

2,700

FLAGLER COLLEGE

TOTAL

51,900

SECONDARY EDUCATION HOME TO TWO OF AMERICA’S TOP HIGH SCHOOLS - NEWSWEEK

St. John’s County has the top school district in Florida. 9 YEARS IN A ROW

STANTON COLLEGE PREP

Source: EMSI 2021

PAXON SCHOOL FOR ADVANCED STUDIES

ENGAGE JACKSONVILLE MSA OVERVIEW | 4

JACKSONVILLE TOURISM

AWARD-WINNING JACKSONVILLE ZOO TOP 25

in the U.S. by Trip Advisor

22MILES of beaches

THENATION’S LARGEST URBAN PARK SYSTEM 80,000 ACRES of green spaces & over

CRUISE INDUSTRY CREATED 460 NEW JOBS & CONTRIBUTES $67 MILLION ANNUALLY

GENERATES $3.2 BILLION IN DIRECT & INDIRECT ECONOMY

20 MILLION VISITORS EVERY YEAR

SUPPORTS 22,000 LOCAL JOBS

40 MILES of hiking trails

2 MAJOR golf tournaments & 2 MAJOR college football games

8PROFESSIONAL sports teams including 1 NFL TEAM

ENGAGE JACKSONVILLE MSA OVERVIEW | 5

CENTRAL BUSINESS DISTRICT DYNAMICS

8,500 RESIDENTS

45,000 DOWNTOWN EMPLOYEES

JACKSONVILLE BY THE NUMBERS

DOWNTOWN ART EVENTS

$910 MILLION INVESTED IN COMMERCIAL RESIDENTIAL/RETAIL PROJECTS $820 MILLION INVESTED IN INFRASTRUCTURE

ART IN PUBLIC PLACES FIRST WEDNESDAY ART WALK ART (RE)PUBLIC HOME TO ONE OF FLORIDA’S THREE FULL-TIME SYMPHONIES

3 FORTUNE 500

COMPANIES CORPORATE HEADQUARTERS

$1.1 BILLION IN PROPOSED DEVELOPMENT PROJECTS

45 MURALS & MOSAICS

10 GALLERIES

39 SCULPTURES

ENGAGE JACKSONVILLE MSA OVERVIEW | 6

ECONOMIC DRIVERS JACKSONVILLE

NEWHOUSING STOCK +7.7K

GROSS METRO PRODUCT +18.3K

POPULATION +110K

NET MIGRATION 55,000

OFFICE-USING EMPLOYMENT 186.6K

FIVE YEAR PROJECTIONS 2021 - 2025 Source Moody’s Analytics

USERS IN THE MARKET Source Moody’s Analytics

JOB GROWTH +75.0K

BIOMEDICAL HEALTHCARE 1 IN 6 JOBS

E-COMMERCE 21.6 MSF Leased in Last 5 Years

JAXPORT +1.3M Teu’s Annaully 2020

INFRASTRUCTURE/ PUBLICWORKS $1.0B in Hwy Projects

Tourism

Global Headquarters

International Airports

Ports

Military Bases

Professional Sports

Higher Education

Major Retail

Source: Moody’s, 2021

ENGAGE JACKSONVILLE MSA OVERVIEW | 7

EMPLOYMENT STRENGTH REGIONAL

Jacksonville is home to 104 regional, corporate, and division headquarters.

NATIONAL & REGIONAL HEADQUARTERS

1,400 EMPLOYEES

1,500 EMPLOYEES

4,500 EMPLOYEES

2,000 EMPLOYEES

7,000 EMPLOYEES

3,900 EMPLOYEES

8,000 EMPLOYEES

2,400 EMPLOYEES

Source: JaxUSA

OTHER NOTABLE EMPLOYERS

• Nemours Foundation • Pilot Coropration of America, Inc. • Comcast

• Adecco Group • Fidelity National Financial • Fanatics

• Web.com • Acosta • Crowley Maritime Corporation

• Vystar Credit Union • Stein Mart • Publix

Source: JAXUSA Partnership 2021

ENGAGE JACKSONVILLE MSA OVERVIEW | 8

HEALTHCARE COVERAGE HOSPITALS &

DUVAL COUNTY

NASSAU COUNTY

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Jacksonville International Airport

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Nassau Sound

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Big Talbot Island State Park

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Little Talbot Island State Park

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Atlantic Ocean

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Ford Rd

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Ft. George Island

Main St N

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Fanning Island

Imeson Rd

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Ft. Caroline Rd

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Bulls Bay Hwy

Merrill Rd

M a y p o r

Edgewood Ave

Craig Municipal Airport

Kings Rd

Atlantic Beach

W B eave r St

Arl i n g t on

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Neptune Beach

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Jacksonville Beach

Beach Blvd

Kernan Blvd

San Juan Ave

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University Blvd S

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J Turner Butler Blvd

Timuquana Rd

103rd St

Ponte Vedra Beach

N o rma n d y Bl vd

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Jacksonville Naval Air Station

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Southside Blvd

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a n d i n g Naval Hospital Jacksonville

Baymeadows Rd

Cecil Field

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Roosevelt Blvd

Henry H Buckman Bridge

19 INPATIENT HOSPITALS

CLAY COUNTY

Orange Park

Point Vedra Blvd

4,700+ LICENSED HOSPITAL BEDS

Phillips Hwy

Palm Valley

Lakeside

B l an din g Bl v d

St. John’s River

Source: Florida Health Finder 2018

Fruit Cove

ENGAGE JACKSONVILLE MSA OVERVIEW | 9

Doctors Inlet

St Johns

ST. JOHNS COUNTY Palm Valley Rd

MILITARY PRESENCE & VETERAN PIPELINE

With six military installations in the

Jacksonville area, the military provides employment stability and creates an almost $12 billion economic impact to the county. Sales Activity: $12 billion Consumption: $6.9 million Capital Investment: $2.5 million

Jacksonville has an estimated 17% of Florida’s military economy.

Jacksonville has over 3,000 skilled veterans returning to the private sector.

JACKSONVILLE QUICK STATS

MARINE CORPS BLOUNT ISLAND COMMAND

NAVAL AIR STATION JACKSONVILLE

CAMP BLANDING JOINT TRAINING CENTER

119,000 ACRES OF MILITARY INSTALLATION

30,203 CIVILIAN PERSONNEL

56,598 MILITARY PERSONNEL

2,672 CONTRACTORS

FLEET READINESS CENTER SOUTHEAST

NAVAL AIR STATION MAYPORT

KINGS BAY SUBMARINE BASE

Source: www.enterpriseflorida.com 2018

ENGAGE JACKSONVILLE MSA OVERVIEW | 10

JAXPORT & INTERNATIONAL TRADE

Located at the crossroads of the nation’s rail and highway network, JAXPORT is a global gateway to Florida. JAXPORT is Florida’s largest container port by volume and the nation’s second-busiest vehicle handling port. JAXPORT owns, maintains and markets three cargo terminals, two intermodal rail terminals and one passenger cruise terminal.

JAXPORT FACTS & FIGURES

AND AN ECONOMIC IMPACT OF

PROVIDES 138,500 JOBS

$31.1 BILLION

HANDLED

ANNUALLY

10.0 MILLION TONS

OF CARGO

FEATURES

20 CONTAINER CRANES

AND ACCESS TO

MORE THAN

MORE THAN

(SECOND LARGEST VEHICLE HANDLING PORT IN THE U.S.) 555,900 VEHICLES

1.3 MILLION TEUS

CSX, NORFOLK SOUTHERN, FLORIDA EAST COAST RAILWAY 3 MAJOR RAILROADS

Source: JAXUSA Partnership 2021

ENGAGE JACKSONVILLE MSA OVERVIEW | 11

OFFICE SNAPSHOT 1Q 2022

Direct Vacancy and Rental Rates

Direct Vacancy and Rental Rates

10.0% 12.0% 14.0% 16.0% 18.0% 20.0%

$25.00

TOTAL OFFICE INVENTORY

$20.00

$15.00

$10.00

0.0% 2.0% 4.0% 6.0% 8.0%

DIRECT ASKING RENT $21.89 PSF/YEAR

DIRECT VACANCY 17.8%

$5.00

$0.00

2013 2014 2015 2016 2017 2018 2019 2020 2021 1Q22

24.4 MSF

Direct Net Asking Rental Rate

Direct Vacancy Rate

Direct Leasing Activity Absorption Direct Leasing Activity and Absorption

(1,000,000) (500,000) 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000

SUBLEASE SPACE % 2.2%

LEASING ACTIVITY 534,082 SF

DIRECT ABSORPTION 42,014 SF

CLASS A

CLASS B

10.8 MSF

11.0 MSF

2013 2014 2015 2016 2017 2018 2019 2020 2021 1Q22

*Figures are year-to-date, rents represent full service

Leasing Activity

Overall Net Absorption

Source: Cushman & Wakefield Research

ENGAGE JACKSONVILLE MSA OVERVIEW | 12

INDUSTRIAL SNAPSHOT 1Q 2022

Direct Vacancy and Rental Rates Direct Vacancy and Rental Rates

$0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00

12.0%

TOTAL INDUSTRIAL INVENTORY

10.0%

8.0%

6.0%

4.0%

DIRECT VACANCY 3.8%

UNDER CONSTRUCTION 3.7 MSF

2.0%

0.0%

2013 2014 2015 2016 2017 2018 2019 2020 2021 1Q 22

101.8 MSF

Direct Net Asking Rental Rate

Direct Vacancy Rate

Leasing Activity/Absorption/Construction Leasing Activity/Absorption/Construction Completions

WAREHOUSE DISTRIBUION

0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000

MANUFACTURING 19.2 MSF

LEASING ACTIVITY* 1.4 MSF

DIRECT RENTS $6.45 PSF

78.3 MSF

OVERALL ABSORPTION* 184,300 SF

OFFICE SERVICE 4.3 MSF

2013 2014 2015 2016 2017 2018 2019 2020 2021 1Q 22

Leasing Activity

Overall Net Absorption

Construction Completions

Source: Cushman & Wakefield Research

ENGAGE JACKSONVILLE MSA OVERVIEW | 13

RETAIL SNAPSHOT 1Q 2022

Average Rent PSF & Vacancy

Average Rent PSF & Vacancy

$25.00

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0%

TOTAL RETAIL INVENTORY

$20.00

$15.00

$10.00

PRICE PSF $199

CAP RATE 6.5%

VACANCY RATE 3.9%

$5.00

$0.00

2013 2014 2015 2016 2017 2018 2019 2020 2021 1Q22

98.9 MSF

Rent PSF

Vacancy

Deliveries & Absorption Rate

Deliveries & Absorption Rate

1,000,000 1,200,000 1,400,000 1,600,000

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0%

AVERAGE RENT $20.98 PSF

YTD ABSORPTIONS 42,000 SF

YTD COMPLETIONS 6,500

UNDER CONSTRUCTION 1MSF

0 200,000 400,000 600,000 800,000

2013 2014 2015 2016 2017 2018 2019 2020 2021 1Q22

Deliveries YTD

Absorption % of Inventory

Source: Cushman & Wakefield Research

ENGAGE JACKSONVILLE MSA OVERVIEW | 14

MULTIFAMILY SNAPSHOT 1Q 2022

3,090 UNITS YTD CONSTRUCTION COMPLETIONS 6,291 UNITS UNDER CONSTRUCTION

Rent Rates/Unit & Vacancy

Rent Rates/Unit & Vacancy

TOTAL MULTIFAMILY INVENTORY

$1,000 $1,200 $1,400 $1,600 $1,800 $2,000

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0%

$0 $200 $400 $600 $800

AVERAGE PRICE/UNIT $176,000

CAP RATE 4.3%

2013 2014 2015 2016 2017 2018 2019 2020 2021 1Q22

100,887 UNITS

Rent per Unit

Class A Rent per Unit

Vacancy

Deliveries & Absorption Rate Deliveries & Absorption Rate

1,000 1,500 2,000 2,500 3,000 3,500 4,000

0 0 0 0 0 0 0

AVG ASKING RENT/ UNIT $1,446

YTD ABSORPTION 221 UNITS

CLASS A 36,355 UNITS

0 500

2013 2014 2015 2016 2017 2018 2019 2020 2021 1Q22

Deliveries YTD

Absorption % of Inventory

Source: Cushman & Wakefield Research

ENGAGE JACKSONVILLE MSA OVERVIEW | 15

ENGAGE JACKSONVILLE MSAOVERVIEW 1Q 2022

cushmanwakefield.com

For more information, please contact:

Eric Messer Sr. Research Manager +1 954 377 0519 eric.messer@cushwake.com

Josh Faircloth Sr. Research Analyst +1 813 424 3220 josh.faircloth@cushwake.com

©2022 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources believed to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.