Supply
Jacksonville’s overall industrial vacancy rate rose over the past year, increasing by 170 basis points (bps) year-over-year (YOY) to 11.4% at the end of Q3. Expansion in vacancy during this period was driven by construction deliveries in which over 4.5 million square feet (msf) delivered, as 75.2% of that inventory remained available for lease. Vacancy pressures were the most pronounced in the Northside submarket, up 440 bps to 13.7% YOY, as 1.4 msf of the above total deliveries occurred there. At the close of Q3, just over 527,000 square feet (sf) of industrial space remained under construction. Vacancy should begin to tick downward as tenant occupations take place and a handful of preleased space from large occupiers take place withing the development pipeline.
Demand
Leasing activity totaled over 5.9 msf through the first three quarters of 2026, reflecting a substantial jump in tenant demand from the same time one year ago. 7 spaces over 250,000 sf have leased so far in 2026, the largest of which was a 1.1 msf Pepsi deal in the Northside submarket, projected to occupy in 2028 when its proposed build-to-suit (BTS) space delivers. This momentum was driven by tenants occupying large-block spaces, including Stellar Energy’s 603,000 sf, Priority Tire’s relocation for 205,000 sf in the Westside submarket and Ring Power’s 205,000-sf BTS space in the Northside submarket. Overall net occupancy gains jumped during Q3, with over 1.0 msf absorbed. That lifted year-to-date (YTD) absorption to over 1.6 msf, a 121.2% increase YOY that outpaced all of 2025 through three quarters.
Pricing
Overall net industrial rent averages slightly inched upward, increasing 20 bps YOY to finish Q3 at $8.06 per square foot (psf). Among submarkets with inventories of 10.0 msf or more, the Southside submarket posted the highest rental rates at $9.45 psf, reflecting a 250 bps annual increase. Among warehouse/distribution assets, the dominant property type in Jacksonville, rents in the Central Business District (CBD) rose 60.8% YOY to $11.65 psf, the fastest growth of any submarket. Looking ahead, the recent slowdown in construction activity could temper rent growth, as fewer new deliveries, which command premium pricing, enter the market. This, coupled with double-digit vacancy, could begin to ease asking rent prices in the near future as tenants have more space options available.
