Jacksonville Commercial Office Space for Rent

Q4 2025

Jacksonville Commercial Real Estate Market Report

Focus: Q4 2025 Market Trends

Executive Summary

The Jacksonville commercial real estate (CRE) market is demonstrating resilience and steady growth in late 2025, driven by population influx and a diverse economy [2]. The Office sector is seeing positive absorption and stable rents, defying national trends of distress [2, 3]. Industrial markets remain robust, with vacancy holding steady near 5.5% despite a surge in new supply [4]. Retail is thriving, with vacancy rates at historic lows and strong demand for neighborhood centers [5]. Multifamily is stabilizing as the market absorbs a record wave of new units, with rent growth expected to accelerate in 2026 [6].

TenantBase Proprietary Data [8] highlights the distribution of active tenant demand over the last 90 days (160 total deals):

  • Retail/Storefront dominated market activity with 64.38% of all searches [8].
  • Warehouse was the second most active sector at 24.38% [8].
  • Office accounted for 11.25% of total search volume [8].

Office Market

Market Overview Jacksonville's office market is outperforming many peer cities, characterized by positive net absorption and a flight to quality in suburban submarkets.

  • Vacancy & Availability: The overall vacancy rate stands at 18.7%, with Class A properties in the Southside and Butler/Baymeadows submarkets seeing tighter conditions [2, 3].
  • Net Absorption: The market recorded positive net absorption of 35,744 SF in Q3 2025, driven by professional services and healthcare tenants [2].
  • Rental Rates: Asking rents have remained stable, averaging $23.50 per SF full-service, with Class A rates pushing $27.00 per SF [2].
  • Market Drivers: TenantBase data shows a preference for shorter lease terms, with 50.00% of office inquiries seeking leases of Less than one year, indicating a cautious but active small business sector [8].

TenantBase Activity [8]

  • Demand Share: Office accounted for 11.25% of total search volume [8].
  • Lease Term Preference: Demand is split between short-term flexibility and mid-term commitments:
    • Less than one year: 50.00% of deals [8].
    • 2-3 Years: 22.22% of deals [8].
    • 3-5 Years: 16.67% of deals [8].
  • Size Requirements: The average lower size requirement for office space is 667 SF for short-term leases, reflecting a market driven by smaller tenants [8].

Industrial & Warehouse Market

Market Overview Jacksonville's industrial sector remains a powerhouse, supported by port activity and e-commerce demand, though new supply is keeping vacancy rates from compressing further.

  • Vacancy & Rent: Vacancy held steady at 5.5% in Q3 2025 [4]. Asking rents continue to rise, averaging $7.85 per SF (NNN) for warehouse distribution space [4].
  • Demand & Supply: Net absorption reached 1.2 million SF in Q3, outpacing new deliveries [4]. The construction pipeline remains active, with over 3 million SF underway [4].
  • Leasing Highlights: TenantBase data indicates a mix of demand, with 30.77% of warehouse inquiries for 1-2 Year terms and 30.77% for 2-3 Year terms [8].

TenantBase Activity [8]

  • Demand Share: Warehouse accounted for 24.38% of total search volume [8].
  • Lease Term Preference: Demand is spread across lease terms:
    • 1-2 Years: 30.77% of deals [8].
    • 2-3 Years: 30.77% of deals [8].
    • Less than one year: 15.38% of deals [8].
  • Size Requirements: The average lower size requirement for warehouse space is 9,417 SF for 1-2 year terms, indicating demand for mid-sized distribution space [8].

Retail Market

Market Overview Jacksonville's retail sector is booming, with strong population growth fueling demand for goods and services in both urban and suburban corridors.

  • Vacancy & Availability: Retail vacancy is extremely tight at 3.2%, the lowest level in over a decade [5]. Availability is scarce in prime centers, driving competition among tenants [5].
  • Rental Rates: Rent growth is robust, rising 4.5% year-over-year to an average of $22.00 per SF (NNN) [5].
  • Construction: New retail development is focused on grocery-anchored centers and mixed-use projects in St. Johns County and other high-growth areas [5].

TenantBase Activity [8]

  • Demand Share: Retail/Storefront activity dominated with 64.38% of all search volume [8].
  • Lease Term Preference: Retail tenants show a clear preference for stability:
    • 3-5 Years: 28.30% of deals [8].
    • 5+ Years: 28.30% of deals [8].
    • 1-2 Years: 22.64% of deals [8].
  • Top Locations: Tenant interest is highest in Jacksonville (City) (22 deals) and St. Augustine (7 deals) [8].

Multifamily Market

Market Overview The multifamily market is stabilizing as it absorbs a significant wave of new supply, with occupancy rates holding firm and rent growth poised to return.

  • Vacancy & Occupancy: Vacancy is estimated at 8.5%, slightly elevated due to recent completions but trending downward [6].
  • Rents: Rents have flattened or dipped slightly by 0.5% year-over-year, averaging $1,450 per unit, as landlords use concessions to lease up new properties [6].
  • Construction: The construction pipeline is thinning, with starts down significantly from their peak, which will support tighter conditions in 2026 [6, 7].
  • Investment: Investor interest remains strong, with sales volume picking up as pricing expectations adjust [6].

2026 Outlook

Looking ahead to 2026, the Jacksonville market is positioned for continued growth and stability.

  • Multifamily Recovery: As new supply tapers off, multifamily vacancy is projected to compress, supporting rent growth of 3-4% in 2026 [6].
  • Industrial Strength: The industrial sector will continue to benefit from port expansion and logistics demand, with rents expected to rise further [4].
  • Retail Resilience: Limited new supply and strong consumer spending will keep retail vacancy low and rents rising [5].

Sources

  1. JLL: Jacksonville Office Market Dynamics Q3 2025
  2. Newmark: Jacksonville Office Market Overview Q3 2025
  3. Colliers: Jacksonville Office Market Report Q3 2025
  4. Cushman & Wakefield: Jacksonville Industrial MarketBeat Q3 2025
  5. Marcus & Millichap: Jacksonville Retail Market Report Q3 2025
  6. Yardi Matrix: Jacksonville Multifamily Market Report – September 2025
  7. Berkadia: Jacksonville Multifamily Report Q3 2025
  8. TenantBase Proprietary Market Data (Jacksonville - Last 90 Days)

Information in this report is aggregated from various third-party sources and synthesized using artificial intelligence and other research tools. While we believe these sources to be reliable, we cannot guarantee the absolute accuracy or completeness of the data. This report is intended for informational purposes to provide market insight and should be independently verified prior to any use in a real estate transaction or legal commitment.