Why Jacksonville

JACKSONVILLE Why

DYNAMIC TRENDS DRIVING GROWTH Q1 2025

Jacksonville Snapshot ABOUT JACKSONVILLE The Jacksonville MSA in North Florida is comprised of the following counties:

NASSAU

DUVAL

BAKER

CLAY

ST. JOHNS

Duval

Clay St. Johns Nassau Baker

JACKSONVILLE

#4 BEST LARGE CITY TO START A BUSINESS WalletHub, 2025

WITH NEARLY 1.8 Million People, the Jackonsville Region is the 4 th Largest MSA in Florida

Cushman & Wakefield | Why Jacksonville

Contents

OFFICE Q4 2024 JACKSONVILLE

MARKET FUNDAMENTALS

ECONOMY Jacksonville’s unemployment rate was 3.4% at the end of Q4, indicating a 20 basis-point (bp) increase compared to one year ago. Even with this increase, unemployment remained below the national rate of 4.2%. Total nonfarm employment grew by 10,800 jobs or 1.4% year-over-year (YOY). SUPPLY Overall vacancy fell for the second consecutive quarter, closing Q4 down 30 bps quarter-over-quarter (QOQ) at 21.3%. This decrease was attributed to the occupancy of 52,500 square feet (sf) at 9000 Southside Blvd by Bank of America in the Southside Submarket. Jacksonville registered its first quarter of net occupancy gains in seven quarters, with Q4 ending at 88,100 sf bringing the year-to-date (YTD) total to -107,500 sf. Class A vacancy rose by 80 bps YOY, finishing Q4 at 22.6% while Class B fell by 50 bps YOY settling at 20.0%. Development starts remained disciplined in 2024, with just 143,000 sf currently under construction. As existing availabilities are filled, vacancy rates should continue to fall into 2025. DEMAND

21.3% Vacancy Rate -108K YTD Net Absorption, SF $22.71 Asking Rent, PSF (Overall, All Property Classes)

YOY Chg

Outlook

SPACE DEMAND / DELIVERIES

300

0

ECONOMIC INDICATORS

-300

-600 Thousands

YOY Chg

SELECT A TOPIC TO NAVIGATE SECTIONS

Related Insights Cushman & Wakefield Research reports analyze economic and commercial real estate activity including supply, demand and pricing trends at the statewide, market and submarket levels. 1 809K Jacksonville Employment 3.4% Jacksonville Unemployment Rate 4.2% United States Unemployment Rate Source:BLS Leasing activity during Q4 totaled 213,300 sf, which marked a 14.4% increase QOQ. This brought the annual total to 1.0 million square feet (msf), down 17.0% from the 2023 total. Class B space accounted for 54.7% of 2024 leasing activity while only making up 48.3% of inventory, illustrating the shift to lower quality space as companies seek cost savings. Suburban submarkets far outpaced CBD leasing activity once again, accounting for 84.3% of new deals signed in 2024. The Deerwood Park submarket led 2024 leasing activity with 329,800 sf, up 50.8% YOY. PRICING Overall asking rents remained stable, growing just 0.1% YOY and settling at $22.71 per square foot (psf) in Q4. The St. John’s County submarket recorded the largest increase in overall rates, finishing Q4 at $31.28 psf, an 11.0% increase YOY. Outlook

-900

2020

2021

Net Absorption, SF Construction Completions, SF

2022

2023

2024

OVERALL VACANCY & ASKING RENT

$23.00

$22.80

$22.60

$22.40

22%

$22.20

20%

$22.00

18%

2020

2021

16%

2022 Asking Rent, $ PSF

2023

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2024

14%

Vacancy Rate

© 2025 Cushman & Wakefield © 2025 Cushman & Wakefield

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Migration Hot Spot

Historic Population

Net Migration

Projected Growth

1.8M

1.9M

50k

1.9M

1.8M

3.5 %

1.75M

3.0 %

1.85M

40k

1.7M

2.5 %

1.8M

1.65M

2.0 %

28.5k

1.8M

30k

1.8 %

1.6M

1.5 %

1.6M

25.0k

1.55M

1.0 %

1.75M

20k

1.5M

0.5 %

1.45M

0.0 %

1.7M

10k

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2019

2020

2021

2022

2023

2024

Population

Growth %

Net Migration

Population

#10 IN THE NATION FOR NET MIGRATION FROM 2019 – 2024

DAL 668k

HOU

PHX

TPA

ATL

AUS

ORL

CLT

SA

JAX

MIA

RDU

SRQ

LAS

BNA

LKL

FMY

SJC

CHI

SF

LA

NY

800k

600k

484k

383k

343k

330k

315k

400k

264k

246k

221k

188k

186k

173k

165k

155k

153k

150k

149k

200k

0

−82k

−200k

−170k

−191k

−400k

−427k

−473k

−600k

Cushman & Wakefield | Why Jacksonville

Net Migration (2019 – 2024)

Projected Net Migration (2025 – 2030)

Industry Diversity

66k Total Businesses

64.6% White Collar

19.2% Blue Collar

16.1% Services

Business Summary BY NAICS (%)

HOVER OVER EACH TOPIC TO LEARN MORE

Jacksonville

U.S.

5.0 %

10.0 %

15.0 %

20.0 %

Trade, Transportation, and Utilities

#1 #2 #3 #4 #5

Education & Health Services

Professional & Business Services

Leisure & Hospitality

Government

Financial Activities

Construction

Manufacturing

Other Services

Information

Cushman & Wakefield | Why Jacksonville

Skilled & Growing Workforce

Labor Force

Unemployment Rate

860k

5.0 %

853.7k

840k

4.0 %

3.8 %

820k

3.0 %

2.8 %

800k

2.0 %

784.5k

780k

JACKSONVILLE IS THE 2nd Hottest Job Market in the United States. – Wall Street Journal, 2024

1.0 %

760k

740k

0.0 %

2020

2021

2022

2023

2024

2025

2020

2021

2022

2023

2024

2025

IN 2024, Florida Ranked #2 Best Workforces – CNBC

Nearly 51.5% OF THE TOTAL POPULATION IS 25–64 YEARS OLD. ESRI

821k Employed Workers

Cushman & Wakefield | Why Jacksonville

Work Life Balance

Vibrant Night Life

12 STATE & NATIONAL PARK SITES

DOWNTOWN JACKSONVILLE

JACKSONVILLE BEACH

Fort Caroline National Park Timucuan Eco & Historic Preserve Talbot Islands State Parks Hanna Park

Ranked 22nd Best-Performing City in the United States. – Milkin Institute, 2025

RIVERSIDE

SAN MARCO

Five Professional Sports Teams/Events

81°- 61° average annual temperature

Jacksonville Zoo & Gardens ranked 4th Best Zoo in the U.S. USA Today, 2025

Jacksonville Jaguars

Jacksonville Iceman

Jacksonville Jumbo Shrimp

Jacksonville Sporting Club

The Players Championship

FOOTBALL

HOCKEY

BASEBALL

SOCCER

GOLF

Cushman & Wakefield | Why Jacksonville

Education

#1 Best State for Higher Education Eight Years in a Row U.S. News & World Report, 2024 2024 Population 25+ BY EDUCATIONAL ATTAINMENT

Top Colleges BY ENROLLMENT 2024

1

Florida State College at Jax 20,530 University of North Florida 16,453 Jacksonville University 3,957 Flagler College 2,688 Edward Waters University 1,175 Tulsa Welding School - Jax 949 Chamberlain University - FL 839 Jones Technical Institute 522 Trinity Baptist College 397 Fortis College – Orange Park 327

4 5 3 6 7 8 2

FLAGLER COLLEGE 3RD BEST COLLEGE IN REGIONAL COLLEGES SOUTH & 14TH BEST VALUE SCHOOL – U.S. News & World Report, 2025

24.6 %

Bachelor's Degree

22.3 %

UNIVERSITY OF NORTH FLORIDA #4 BEST PUBLIC COLLEGE IN FLORIDA – CollegeSimply, 2025

High School Graduate

JACKSONVILLE UNIVERSITY #26 BEST VALUE SCHOOL – U.S. News & World Report, 2025

18.1 %

Some College, No Degree

13.1 %

Graduate/Professional Degree

9 10

10.7 % 4.7 % 2.3 % 4.2 %

Associate Degree

GED/Alternative Credential 9th – 12th Grade, No Diploma

10+ local colleges and higher education institutions preparing graduates with market-demand skills

Less Than 9th Grade

Cushman & Wakefield | Why Jacksonville

Logistics & Transportation

Map Layer Options

Toggle to Enable Views

Rail & Intermodal

Ports

Highways

Metropolitan Areas

Major Airports

Map Legend

SEA

RAIL

SKY

LAND

JAXPORT handles 19,228,316 tons of cargo annually (2023/2024). Channel depth of 40' – 47' can handle the largest container and cruise ships in the world. $675,519,580 in planned capital improvements from 2024 –2029.

CSX Transportation is the 3rd largest railway operator in the country with over 21,000 miles of railway and is headquartered in Jacksonville. JAXPORT is one of 11 seaports in Florida with railway access. The ten mile railway intersects with CSX and Norfolk Southern railways allowing for goods to be easily transferred.

Jacksonville International Airport and Jacksonville Executive at Craig Airport. JAX recorded over 7.6 million travelers throughout 2024, up 2.8% from 2023. JAX is undergoing a $440 million expansion to add six gates and 2,000 parking spaces, set for completion by December 2026.

I-95, I-10, and A1A run through Jacksonville.

Jacksonville is strategically located along the mouth of the St. Johns River acting as an entry point for international container ships. Florida Department of Transportation has allocated $1.4 billion for I-95 expansions planned over the next 5 years.

Cushman & Wakefield | Why Jacksonville

New-to-Market Tenant Demand

Eckart Supply

Hermeus

New York City

HOLON

Warren

Germany England

DHL Supply Chain

Cordyon

Bentonville

Anderson-DuBose

Atlanta

Medius

L Marks

Jacksonville Continues to Draw a Wide Array of New-To-Market Companies Both Nationally and Internationally

Sam's Club Distribution

Cushman & Wakefield | Why Jacksonville

New Development

FUTURE JACKSONVILLE JAGUARS STADIUM

ONE SHIPYARDS PLACE

$260 Million INVESTMENT

$693 Million INVESTMENT

$1.4 Billion INVESTMENT

137k OFFICE SF

200k OFFICE SF

120k+ RETAIL SF

200 HOTEL ROOMS

71,500 EXPANDED CAPACITY

220 NEW FOOD & BEVERAGE POINTS OF SALE

12k RETAIL SF

HEADQUARTERS

200 LUXURY CONDOS

750+ RESIDENTIAL UNITS

125 MARINA SLIPS

170 HOTEL ROOMS

45 NEW ESCALATORS & ELEVATORS

14 NEW RESTROOMS

Public Marina & SUPPORTING BUILDING

26 RESIDENTIAL UNITS

35+ Acres PLUS 1+ MILE OF RIVERWALK & TRAILS & 4 PUBLIC PARKS

New Canopy & Concourse Expansion

Cushman & Wakefield | Why Jacksonville

Office Market Snapshot Q1 2025 21.4 MSF Jacksonville Inventory SUPPLY & DEMAND

CLASS A 11.2 MSF

CLASS B 10.2 MSF

301

2.0M

17

1.0M

95

Class A Spotlight

1

0.0M

NORTHSIDE

NORTHBANK

−1.0M

5.1 MSF Inventory

23.9% Direct Vacancy

$23.98 Direct Rent (FS PSF)

2020

2021

2022

2023

2024

2025 YTD

295

301

Leasing Activity

Construction Completions

Overall Absorption

DEERWOOD PARK

4.2 MSF Inventory

18.9% Direct Vacancy

$24.14 Direct Rent (FS PSF)

DIRECT RENTAL & VACANCY RATES

ARLINGTON

SOUTHBANK NORTHBANK

25 %

WESTSIDE

SOUTHPOINT

SOUTHSIDE

$ 23.00

10

90

20 %

95

3.2 MSF Inventory

18.8% Direct Vacancy

$21.38 Direct Rent (FS PSF)

DEERWOOD PARK

15 %

SOUTHPOINT

$ 22.50

10 %

295

BEACHES

BAYMEADOWS

$ 22.00

5 %

BAYMEADOWS

295

3.1 MSF Inventory

17.0% Direct Vacancy

$20.76 Direct Rent (FS PSF)

0 %

MANDARIN

1Q20

1Q21

1Q22

1Q23

1Q24

1Q25

23

Direct Rental Rate

Overall Vacancy

SOUTHBANK

ORANGE PARK/CLAY COUNTY

17

2.0 MSF Inventory

27.6% Direct Vacancy

$24.02 Direct Rent (FS PSF)

ST. JOHNS COUNTY

1

MANDARIN

301

228

1.3 MSF Inventory

27.6% Direct Vacancy

$22.49 Direct Rent (FS PSF)

95

Cushman & Wakefield | Why Jacksonville

Industrial Market Snapshot Q1 2025

Submarket Spotlight 20.2 MSF Manufacturing 4.4 MSF Office Services/Flex 91.9 MSF Warehouse/Distribution

301

17

95

1

SUPPLY & DEMAND

NORTHSIDE

10.0M

295

8.0M

301

6.0M

4.0M

CBD

2.0M

0.0M

WESTSIDE

10

WESTSIDE

90

95

2020

2021

2022

2023

2024

2025 YTD

SOUTHSIDE

BEACHES

53.5 MSF Inventory

7.7% Direct Vacancy

$6.74 Direct Rent (FS PSF)

Leasing Activity

Construction Completions

Overall Absorption

295

295

NORTHSIDE

23

32.7 MSF Inventory

5.4% Direct Vacancy

$9.21 Direct Rent (FS PSF)

DIRECT RENTAL & VACANCY RATES

17

SOUTHSIDE

$ 10

1

8 %

301

228

19.4 MSF Inventory

4.8% Direct Vacancy

$9.10 Direct Rent (FS PSF)

$ 8

95

6 %

$ 6

ST. JOHNS COUNTY

ORANGE PARK / CLAY COUNTY

4 %

$ 4

CBD

2 %

$ 2

5.7 MSF Inventory

1.1% Direct Vacancy

$10.07 Direct Rent (FS PSF)

$ 0

0 %

1Q20

1Q21

1Q22

1Q23

1Q24

1Q25

Direct Rental Rate

Overall Vacancy

ORANGE PARK/CLAY COUNTY 2.5 MSF Inventory 15.0% Direct Vacancy $7.19

Direct Rent (FS PSF)

Cushman & Wakefield | Why Jacksonville

EFFECTIVE RENT VS STABILIZED OCCUPANCY RATE Multifamily Market Snapshot Q1 2025 113,857 UNITS Jacksonville Inventory

ABSORPTION VS COMPLETIONS

90.8% STABILIZED OCCUPANCY RATE Excludes Properties Still In Their Initial Lease-Up Period

10.0k

96 %

$ 1.5k

8.0k

94 %

6.0k

$ 1.0k

92 %

Effective Rents Increased 19.2% Over the Past Five Years ENDING Q1 2025 AT $1,546 PER UNIT

4.0k

$ 0.5k

90 %

2.0k

0.0k

2,866 Units Under Construction AT END OF Q1 2025

2020

2021

2022

2023

2024

2025 YTD

$ 0.0k

88 %

1Q20

1Q21

1Q22

1Q23

1Q24

1Q25

Effective Rent Per Unit

Stabilized Occupancy Rate

Construction Completions

Overall Net Absorption

31,250 Units Delivered SINCE 2020

Over $8.1 Billion In Sales Over The Past 5 Years WITH A RECORD-SETTING $2.7 BILLION IN 2021

Cushman & Wakefield | Why Jacksonville

Source: CoStar

Retail Market Snapshot 103.1 MSF Total Retail

Q1 2025

SUPPLY & DEMAND

Product Type Spotlight

2M

1.5M

NASSAU

MALLS

1M

6.7 MSF Inventory

5.0% Overall Vacancy

$31.17 Overall Rent (NNN)

500k

POWER CENTERS

0

2020

2021

2022

2023

2024

2025 YTD

DUVAL

4.3 MSF Inventory

7.2% Overall Vacancy

$32.13 Overall Rent (NNN)

Construction Completions

Overall Net Absorption

BAKER

NEIGHBORHOOD CENTERS

33.8 MSF Inventory

6.5% Overall Vacancy

$26.60 Overall Rent (NNN)

DIRECT RENTAL & VACANCY RATES

CLAY

STRIP CENTERS

$ 30

5.5 %

5.0 %

7.8 MSF Inventory

4.5% Overall Vacancy

$22.44 Overall Rent (NNN)

$ 28

ST JOHNS

4.5 %

$ 26

4.0 %

3.5 %

$ 24

GENERAL RETAIL

3.0 %

$ 22

49.8 MSF Inventory

2.0% Overall Vacancy

$23.58 Overall Rent (NNN)

2.5 %

$ 20

2.0 %

2020

2021

2022

2023

2024

2025

Direct Rental Rate

Overall Vacancy

OTHER

0.7 MSF Inventory

0.0% Overall Vacancy

$25.47 Overall Rent (NNN)

Cushman & Wakefield | Why Jacksonville

Source: CoStar

Market Lead

SOURCES

TownCharts univstats.com USA Today, 2025 U.S. Census Bureau Wallet Hub Wall Street Journal, 2024 WorldsBestCities.com

Jacksonville Jaguars jacksonville.com JAX Daily Record Lightcast.io MacroTrends.net Milkin Institute, 2025 Moody's Analytics RiversEdge

aaroads.com CollegeEvaluator CollegeSimply CoStar Downtown Investment Authority Enterprise Florida ESRI flgov.com

Authors

©2025 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 representation as to its accuracy. Cushman & Wakefield does not claim any ownership rights to the corporate logos featured in Why Orlando and their usage in this research report is strictly for illustrative and informative purposes. Why Orlando is intended for limited distribution.