Strong fundamentals continue to position Jacksonville as one of the country's leading retail destinations. Most notably, asking lease rates jumped by 6.7 percent year-over-year in the first quarter to $20.92 per square foot, according to a market report from Colliers.
Also, demand remains strong, with net absorption more than doubling to 72,547 per square foot.
Additionally, Colliers called the leasing activity "robust", which reached 509,439 square feet. Grocery chain Publix snagged two of the largest leases in the market, signing for 55,701 and 38,520 square feet, respectively, at 1975 Silverleaf Pky and 12245 NE Dairy Ridge Rd. The third biggest deal went to Nothing Putt Fun, which signed for 16,000 square feet at 7250 US 1 N.
"The market's resilience stems from impressive economic and demographic shifts, despite a slight cooling in immediate demand," Colliers summed up Jacksonville in the report.
"Rapid GDP growth and steady in-migration have propelled Jacksonville into the ranks of the nation's 20 largest metropolitan areas. These factors continue to support significant retail expansion across the region."
Yet some fundamentals weakened for retail in the first quarter, including vacancy, which increased by 60 basis points to 4.90 percent.
Sales volume in the trailing 12 months was roughly $184 million, representing "minor deceleration," according to Colliers. The average sales price was $238 per square foot, a number that has remained "static" over the last three quarters.
Deliveries in the market nearly tripled to 185,100 square feet, with construction falling to 550,794 square feet, from 837,552 square feet.
Overall, Colliers is bullish about retail in Jacksonville going forward. The CRE firm predicts that, as interest rates stabilize and the gaps between buyers and sellers narrow, transactions are likely to "surge" as a result, which will benefit "well-anchored neighborhood centers."
"A diversified economy and strategic development initiatives further strengthen the local commercial landscape," Colliers said.
"As a result, Jacksonville remains a top-tier destination for long-term retail investment throughout 2026."
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