Jacksonville Retail Market Report

Demographic trends evolving in Jacksonville. Population growth remains a key tailwind for retail space demand in the metro, though a slowing labor market may begin to restrain in-migration. This may dampen retail sales growth, which ranked seventh among major markets in the year ended in June. Nevertheless, submarkets like Orange Park-Clay County and St. Johns County maintain solid footing, with each posting 40-basis-point year-over-year occupancy improvements driven by robust population growth in the southern periphery. In contrast, areas like Northwest Jacksonville, Arlington and the Southside face rapidly rising vacancy, largely due to relinquishments at properties exceeding 10,000 square feet.