JACKSONVILLE, FL—Fairly stable. That's the best phrase to describe Jacksonville's retail market. But where do we go from here?

We caught up with Collis McGeachy, a vice president with CBRE's Jacksonville office, to get his predictions going forward in part one of this exclusive interview. Be sure to come back to this afternoon's Southeast edition, where he'll discuss factors that will have the biggest impact on Jacksonville's retail market in the next few quarters.

GlobeSt.com: How would you describe Jacksonville's current retail market?

McGeachy: We're a fairly stable market currently. There are a few high-vacancy markets that will prevent us from dropping into single-digit vacancies. Those markets are skewing the numbers a bit.

We'll probably see a little further drop in our vacancy rate. Jacksonville closed second quarter 2014 with a total vacancy rate of 9.6%, which is lower than we had last year. We're seeing a steady recovery as retail accelerates because of consumer confidence.

Growing demand for retail space in Jacksonville has sparked new development as well as renovation of older shopping centers. For example, Walmart backfilled about three old Food Lion boxes with plans to convert several other locations. Another trend that could play a role in strengthening the retail market, especially near the downtown area, is the development of mixed-use projects that offer housing, retail, and restaurants.

GlobeSt.com: What new development projects are you seeing in Jacksonville retail?

McGeachy: Jacksonville only had one new project that came out of the ground recently—the Parkway Shops. The developers built a small project anchored by Marshalls and Dick's Sporting Goods to complement their existing River City Marketplace, a 1-million-square-foot power center.

Local developers have added new tenants at Atlantic North, which already featured an Academy Sports + Outdoors and an LA Fitness. Atlantic North is adding an Earth Fare, which is new to the market. They're also building a Belk, which is a relocation from the Regency Square Mall.

The Shoppes on Riverside is a new Fresh Market project under construction in the downtown area. The project will open in early fourth quarter as well. We're seeing great synergy and activity, but there hasn't been a tremendous amount of new construction. We'll probably see some more in the next 12 months, but it's really based on tenant-driven requirements.

GlobeSt.com: What new tenants are you seeing in the market?

McGeachy: Trader Joe's is scheduled to open a store in North Florida in fourth quarter 2014 in South Beach Regional. Gordon Food Services made its first entry into our market, operating out of about a 16,000-square foot-store.

The bulk food and restaurant supplies company is also pursuing another site on the other side of Jacksonville. Epic Theatres is also coming to Jacksonville. They will open a 14-screen stadium seating auditorium in Oakleaf Station on the Westside of Jacksonville.