While robust growth is always desirable, stability in the commercial real estate sector can be equally advantageous. This is particularly evident in Jacksonville's retail market as it begins 2025.
According to a report from Colliers, retail vacancy rates in Jacksonville have remained steady, standing at 4.3% during the first quarter of 2025 compared to the previous quarter. This figure represents a slight decrease of 10 basis points from the fourth quarter of 2024, indicating a stable demand for retail space despite a cautious economic environment.
Sales volume surged to $705 million, up from around $550 million in the previous three months.
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"Private investors dominated retail property sales, with owner-users accounting for more than 10% of the previous year’s transactions," Colliers explained, adding that the majority of deals completed involved smaller ones that were less than 10,000 square feet.
Kimco Realty Corp made the largest acquisition with its $108 million purchase of The Markets in Town Center, which spans 254,000 square feet. The next closest was Curbline buying 4524-4530 St Johns Ave for $86.3 million. American Freight signed the top lease, with its 40,000 square-foot deal at 6024 103rd St.
Asking lease rates increased by 14 cents per square foot to $19.32 NNN. However, that number is below the first quarter of 2024's $19.99 per square foot.
While demand remains positive, with 37,200 square feet absorption in the first quarter, which is down from the previous three-month figure of 87,700. Jacksonville has seen 530,000 square feet of new space enter the market over the past 12 months, ranking the city seventh out of the top 10 retail markets in the country, according to Colliers.
However, going into the second quarter, only 370,000 square feet of retail space is currently under construction, which would represent a 56 percent year-over-year plunge. Most of the product involves projects that are 10,000 square feet or less.
"The slowdown is largely due to the uncertainty surrounding new tariffs and their impact on costs," Colliers said.
However, the firm did add that the overall fundamentals in Jacksonville's retail sector "remain healthy" and "indicate stability" for the second quarter.
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