Jacksonville Commercial Office Space for Rent

Q3 2026

Q3 2026 Jacksonville Commercial Real Estate Market Report

Focus: Q3 2026 Market Trends

Executive Summary

Jacksonville's commercial real estate market is improving across most sectors. Office vacancy is at a three-year low, industrial is absorbing a large wave of speculative supply, and retail absorption turned positive in Q2. Tenant demand on TenantBase shifted sharply toward office in Q3: office space accounted for 47.2% of all Jacksonville tenant searches, nearly seven times its 6.8% share in Q2, and office tenants are committing to longer terms.

Sector Snapshot

  • Office: Improving. Vacancy fell to 20.5% in Q2, the lowest in three years, with the Beaches and Clay County under 5%.
  • Industrial: Absorbing supply. Vacancy was 11.6% after a speculative delivery wave, with 560,664 SF absorbed year to date.
  • Retail: Healthy. Vacancy was 5.2% with positive year-to-date absorption.
  • Multifamily: Turning the corner. Rents posted their first year-over-year gain in three years.

Jacksonville Tenant Demand Index

The TenantBase Tenant Demand Index tracks what businesses across Northeast Florida are actively searching for on the TenantBase platform each quarter. Because it measures tenant intent before leases are signed, it shows where demand is heading ahead of traditional vacancy and absorption data.

Q3 2026 Search Share by Space Type (July 1 to September 30, 2026)

  • Retail/Storefront: 52.8%
  • Office: 47.2%
  • Warehouse/Industrial: 0.0%

Three-Quarter Trend

  • Retail/Storefront: 66.5% in Q1, 72.6% in Q2, 52.8% in Q3
  • Office: 13.4% in Q1, 6.8% in Q2, 47.2% in Q3
  • Warehouse/Industrial: 20.1% in Q1, 20.5% in Q2, 0.0% in Q3

Key Takeaways

  • Office demand rose nearly sevenfold, from 6.8% to 47.2% of Jacksonville searches, nearly matching retail.
  • Office tenants are committing longer. Searches for terms under one year fell from 61.5% in Q2 to 28.0% in Q3, while 2 to 3 year terms became the top choice at 32.0% and 5+ year terms reached 20.0%.
  • Retail tenants added flexibility. Retail searches for terms under one year rose from 21.1% in Q2 to 35.7% in Q3.
  • The Beaches led location interest, followed by the Westside, Northside, Clay County, Downtown, and Southside.

Office Market

Key Metrics (Q2 2026)

  • Vacancy: 20.5%, down 170 basis points year over year and the lowest in three years (Cushman & Wakefield)
  • Year-to-date net absorption: positive 385,000 SF (CBRE)
  • Average asking rent: $23.54/SF full service, up about 1.8% year over year (CBRE)
  • Tightest submarkets: the Beaches at 4.5% and Clay County at 4.8% (CBRE)
  • Highest vacancy: Arlington at 41.2% (CBRE)
  • Largest lease: Everbank renewed 174,000 SF at 301 W Bay St Downtown (CBRE)

TenantBase Office Activity

Demand share: 47.2% of Jacksonville tenant searches, up from 6.8% in Q2 and 13.4% in Q1.

Lease term preferences:

  • 2 to 3 years: 32.0%
  • Less than one year: 28.0%
  • 5+ years: 20.0%
  • 3 to 5 years: 16.0%
  • 1 to 2 years: 4.0%

Space requirements by term:

  • Less than one year: 1,500 to 3,000 SF
  • 2 to 3 years: 917 to 2,250 SF
  • 3 to 5 years: 500 to 1,000 SF

Top locations: The Beaches was the most requested single area across all space types in Q3, followed by the Westside, Northside, Clay County, Downtown, and Southside. Many tenants searched broadly across Arlington, the Beaches, Clay County, Downtown, and the I-95 corridor.

TenantBase data vs. the market: The two areas Jacksonville tenants searched most, the Beaches and Clay County, are also the tightest office submarkets in the metro at under 5% vacancy. Tenants targeting those areas should start early and expect limited options. Tenants open to Arlington, at 41.2% vacancy, or the I-95 corridor will find the most leverage on rent and concessions.

Industrial & Warehouse Market

Key Metrics (Q2 2026)

  • Vacancy: 11.6%, up 290 basis points year over year after speculative deliveries (Cushman & Wakefield)
  • Year-to-date net absorption: positive 560,664 SF (Cushman & Wakefield)
  • Average asking rent: $8.02/SF, with warehouse/distribution at $9.45/SF (Cushman & Wakefield)
  • Under construction: about 1.34 million SF, down 68.1% year over year (Cushman & Wakefield)
  • Largest lease: Stellar Energy, 603,529 SF on the Westside (Cushman & Wakefield)

TenantBase Industrial Activity

Demand share: No industrial searches were recorded on TenantBase in Jacksonville in Q3, down from 20.5% of searches in Q2 and 20.1% in Q1.

TenantBase data vs. the market: With vacancy at 11.6% and construction falling sharply, industrial tenants returning to the market will find ample options and room to negotiate, especially on newer speculative space.

Retail Market

Key Metrics (Q2 2026)

  • Vacancy: 5.2% (Cushman & Wakefield)
  • Year-to-date net absorption: positive 157,317 SF (Cushman & Wakefield)
  • Average asking rent: $25.19/SF NNN, up 1.4% year over year (Cushman & Wakefield)
  • Under construction: 847,264 SF, about 39% in St. Johns County (Cushman & Wakefield)
  • Notable leases: Whole Foods (30,000 SF) and TJ Maxx (25,000 SF) at Durbin Park (Cushman & Wakefield)

TenantBase Retail Activity

Demand share: 52.8% of Jacksonville tenant searches, the largest category for the third straight quarter.

Lease term preferences:

  • Less than one year: 35.7%
  • 3 to 5 years: 28.6%
  • 2 to 3 years: 21.4%
  • 5+ years: 10.7%
  • 1 to 2 years: 3.6%

Space requirements by term:

  • 2 to 3 years: 500 to 1,000 SF
  • 3+ years: 1,000 to 2,500 SF

TenantBase data vs. the market: Jacksonville retail tenants on TenantBase are almost entirely small-format users under 2,500 SF. With vacancy at 5.2% and new construction concentrated in fast-growing St. Johns County, small tenants will find the most new options in the south, while established areas like the Beaches remain competitive.

Multifamily Market

Jacksonville apartment rents rose 0.64% year over year in Q2 2026, the market's first positive reading after three years of declines, according to Matthews. Vacancy fell sharply as 1,564 units were absorbed in the quarter, and the construction pipeline has dropped to 3,612 units, down from a peak in early 2023.

Q4 2026 Outlook

  • Office: Expect continued improvement, with tenant search demand concentrated in the tight Beaches and Clay County submarkets.
  • Industrial: Expect vacancy to ease as construction slows and speculative space leases up.
  • Retail: Expect stable vacancy near 5% with growth focused in St. Johns County.
  • Multifamily: Expect rent growth to firm as new supply slows.

Frequently Asked Questions

What type of commercial space are Jacksonville tenants searching for in 2026?

In Q3 2026, retail/storefront space made up 52.8% of Jacksonville tenant searches on TenantBase and office made up 47.2%. Office share rose from 6.8% in Q2.

Which Jacksonville areas are tenants searching most?

The Beaches was the most requested area on TenantBase in Q3 2026, followed by the Westside, Northside, Clay County, Downtown, and Southside.

What lease terms do Jacksonville office tenants want?

In Q3 2026, 32.0% of Jacksonville office tenants on TenantBase sought 2 to 3 year terms, 28.0% sought terms under one year, and 36.0% sought 3 years or longer.

What is the office vacancy rate in Jacksonville?

Jacksonville office vacancy was 20.5% in Q2 2026, the lowest in three years, according to Cushman & Wakefield. The Beaches, at 4.5%, is the tightest submarket, according to CBRE.

What is the industrial vacancy rate in Jacksonville?

Jacksonville industrial vacancy was 11.6% in Q2 2026, up 290 basis points year over year after a wave of speculative deliveries, according to Cushman & Wakefield.

How can I find commercial space in Jacksonville at no cost?

TenantBase matches business tenants with vetted independent tenant rep brokers across Northeast Florida at no cost to the tenant. Brokers are compensated by the landlord. Get started with TenantBase.

Sources

  1. TenantBase proprietary search data, Jacksonville, July 1 to September 30, 2026
  2. TenantBase, Jacksonville Commercial Real Estate Market Report, Q2 2026
  3. TenantBase, Jacksonville Commercial Real Estate Market Report, Q1 2026
  4. Cushman & Wakefield, Jacksonville MarketBeats, Q2 2026
  5. CBRE, Jacksonville Office Figures, Q2 2026
  6. Cushman & Wakefield, Jacksonville Industrial MarketBeat, Q2 2026
  7. Cushman & Wakefield, Jacksonville Retail MarketBeat, Q2 2026
  8. Matthews, Jacksonville Multifamily Market Report, Q2 2026

Disclaimer

Information in this report is aggregated from third-party sources and TenantBase proprietary platform data, and was synthesized with the assistance of AI. Market metrics reflect the most recent published data available at the time of writing. TenantBase search data reflects tenant activity on the TenantBase platform and is not a measure of total market leasing. All figures should be independently verified before making real estate decisions.