Jacksonville Industrial Outdoor Storage Market Report
Jacksonville IOS Market Overview
Industrial and IOS demand in Jacksonville has surged in recent years, driven by increased activity at the Port of Jacksonville and near nation-leading population growth. The city expanded its population by 23% from the end of 2013 to the end of 2023, outpacing the Florida average of 16% and the national average of 6%. At the same time, consumers in Jacksonville have more disposable income than ever before, with average household income in the metro growing more than $3,000 above the national average since 2019. Construction material storage and distribution have, in turn, become major demand drivers in the metro as construction firms and distributors try to keep pace with the city’s expanding economy.
Jacksonville By the Numbers
IOS Properties in Jacksonville
- Vacancy: 5.2%
- Rent Per Square Foot: $13.40
- Rent Per Square Foot for Land: $1.06 PSF
- Annual Rent Growth: 5.3%
- Cap Rate: 7.5%
- Price Per Square Foot: $126
- Dollar Volume: $37 million
Jacksonville All Industrial
- Vacancy: 4.4%
- Rent Per Square Foot: $10.71
- Rent Per Square Foot for Land: $1.06 PSF
- Annual Rent Growth: 7.6%
- Cap Rate: 7.1%
- Price Per Square Foot: $101
- Dollar Volume: $802 million
Market Performance
Industrial and IOS vacancy rates have risen from the record lows observed in 2022, primarily due to heightened completions in the metro. The construction pipeline is thinning, aiding the outlook for existing boxes and properties. Despite the rise in vacancy, asking rents continue to grow, recording a 7.6% annual gain in 2Q 2024. Jacksonville remains a cost-effective location for industrial tenants, with per square foot pricing at roughly 50% of the cost to lease space in Southeast Florida and around 75% of average pricing in Central Florida. While cap rates have increased roughly 90 basis points since 2022, they may soon face downward pressure as financing costs ease in late 2024 and early 2025.
Jacksonville’s IOS facilities are largely concentrated downtown and to its immediate west, including both the Riverside and Westside submarkets, particularly along Insterstate-10. IOS dollar volume for the 12 months preceding 2Q 2024 stands at $37 million. This metric more than outpaces the $12 million figure recorded in 2019. Deal volume is down from 2022 levels, but 300% growth since 2019 highlights the newfound prominence IOS properties have found with investors, especially in a rapidly growing port city like Jacksonville. Overall industrial sales have also expanded significantly, increasing 72% over the same period.
