CRE Market Trends in Jacksonville, Florida
Specializes in providing actionable insights into the commercial real estate space for investors, brokers, lessors, and lessees. He covers quarterly market data reports, investment strategies, how-to guides, and top-down perspectives on market movements.
Want to dig deeper into Florida? Get in line; there’s practically a stampede of folks looking to make hay while the sun is shining. Between a thriving snowbird culture, military bases, and a diverse community, it makes sense that the Sunshine State continues to reign supreme as a top state for relocation.
There are over 8,436 miles of coastline divided up into ten categories.
Today it’s time to look at commercial real estate market trends in Jacksonville, FL, a major part of the First Coast. The greater Jacksonville area has a population of 1,314,000, and only continues to grow every year.
Multiple opportunities for commercial real estate for sale in Jacksonville, FL abound, but start the right way by looking at market trends in the area.
Senior Living Is Changing for Independence and Community
Senior migration to Florida, in general, is nothing new: the mild winters and bright summers make it a popular draw for seniors trying to get away from the chilly New England states or even the Upper Midwest.
According to the American Health Care Association & National Center for Assisted Living, over 42% of assisted living facilities are independently-owned. This spells opportunities within commercial real estate.
While assisted living is a popular theme, the reality is that plenty of seniors need something different than the services of senior living. Senior housing is diverse and multifunctional; 55+ communities can vary in terms of amenities.
Some communities focus on shared activities, while others let residents simply live amongst each other and leave a more open-ended schedule.
Jacksonville recently got another independent retirement living community, Inspirations at Town Center. This property is owned and managed by Tampa-based Validus Senior Living and rests on 12.14 acres. The amenities for these 169 amenities are incredible, with chef-prepared meals, private dining, spacious one or two-bedroom apartments, and lots of resort-style activities.
The Takeaway: Pump up the Premium
Far too many within commercial real estate circles are only looking at simple amenities when it’s clear that many markets have strong demand for more luxury amenities.
The luxury train isn’t for everyone, and it does take planning to pull off constructing these gorgeous projects. But it isn’t impossible, and this newly constructed luxurious senior living experience should certainly spawn some interesting ideas for portfolios.
Multifamily Continues to Be the Godzilla of Florida
Multifamily CRE is becoming more than just “bread and butter” for commercial property fans; it’s becoming the golden goose that just keeps on giving. In Jacksonville, multifamily housing is a necessity to keep up with the changing needs of the population. Simply put, multifamily isn’t about avoiding the mortgage, but rather avoiding being inconvenienced.
One of the more exciting projects focuses not on luxury finishes or super-premium add-ons, but renovating apartments for low-income seniors. The intersection of reduced-income and senior living is well-established. In fact, there’s an entire section within the Florida Department of Elder Affairs to provide key resources just for senior citizens.
Huge Senor Multifamily Housing Project Coming to Jacksonville
Land in the proper place is truly a scarce resource. But picture this: 48.53 acres of mixed-use development aimed at an active 55+ audience. Jacksonville’s very own RISE development group is building a community for residents 55 and over, and their plans call it Glen Kernan Park. It’ll be at the intersection of NW Butler and Hodges boulevards and feature a lot of amenities.
The developer plans to have not just apartments and townhomes, but space for memory care and assisted living. It feels a bit kitchen sink because the build doesn’t stop there: retail space, a hotel, gas station, and car wash are also in the plans.
The developer will break ground on the project this upcoming April and hope to complete it by early 2024.
This is an ambitious project that will add immense value to the Glen Kernan area. The hotel is planned to be around 174 rooms; no operator for the hotel has been named publicly.
The Takeaway: Get a Bucket Ready to Catch Big CRE Firm Rainwater
Large-scale development projects have an interesting way of trickling down through the real estate ecosystem. Smaller development shops, renovation companies, and other roles within the CRE world can certainly take these trends and use them to their advantage:
- Real estate consulting firms with entrepreneurial clients should look into retail leases and what type of mutual agreements can come from investing in new retail space.
- Brokers looking to diversify their client base can and should pay attention to senior living, as the number of seniors in care continues to rise.
- Large-scale development projects take up plenty of news coverage, which in turn brings new eyes to a neighborhood.
- Community property for sale in Jacksonville, FL is more varied than meets the eye.
Building a file with ongoing market trends is a good way to begin sharpening the skills necessary to pounce on more deals, connect more people, and truly add value to your own network.
The Road Ahead
Looking at the rapid rise of multifamily, senior living, and retail space in Jacksonville makes it clear that this is a city that’s on the rise.
Large-scale development projects come with their own inherent risk management strategies, which means that if large firms are willing to dig into the cost of developing in the area, chances are good that it’s an area smaller firms and joint venture groups can look into as well.
Every city has its own rhythm for commercial real estate, from local government sentiment to incentives. Evaluating market trends based on your own business objectives and vision, therefore, is incredibly important.
Jacksonville has a space for different types of commercial property, and strong analysis leads to making the best decisions possible.
There is no need to rush through any CRE related decisions in the greater Jacksonville area, but there is also no need to delay too long. Study what’s available, run the numbers, and build a strong plan of action.
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