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Tampa, FL vs. Jacksonville, FL: Which Is Better for Businesses?

Published: 05-27-22 Category: General CRE

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.

Google searches and social media followers don’t always paint a complete picture of the vibrancy and opportunities in a city.

Sometimes, it takes a deeper dive into specifics to get the full picture of which city is better for businesses.

A city’s cost of living, housing availability, and commute time are just a few factors that impact business growth.

Each city has its own pros and cons when it comes to business-friendliness.

Which city is right for your business? Here’s an in-depth look at Tampa vs. Jacksonville as they relate to commercial real estate and business.

Population Comparisons

As of 2022, 407,104 people currently live in Tampa; 938,717 people live in Jacksonville. However, Jacksonville is much larger in terms of land area.

Tampa’s population density is nearly three times as high as Jacksonville and it is a much more urban area.

Additionally, Tampa is generally grouped as the Tampa Bay area, which includes Pinellas County and St. Petersburg.

When viewed in this way, Tampa Bay has 3.24 million people. This is about three times the amount of people that live in Jacksonville.

Jacksonville is close to beautiful Atlantic beaches and Flagler College.

It is a very short distance from St. Augustine, which is the oldest city in Florida.

The Greater Tampa Bay area is incredibly vibrant, with a large number of attractions such as Busch Gardens and Adventure Island.

It has a variety of businesses, from national chains, like Bloomin’ Brands, to world-famous restaurants like the Columbia Restaurant and Bern’s Steakhouse.

Average Demographics

In Tampa, the population demographics in 2022 were:

Median age 35.6 years old.
51.7% of the population is female.
16.3% of the population is between the ages of 25 to 34.
45% of the population identifies as White.
22.8% of the population identifies as Black.
25.1% of the population identifies as Hispanic.

In Jacksonville, the population demographics in 2022 were:

Median age 35.8 years old.
51.6% of the population is female.
16.2% of the population is between the ages of 25 to 34.
52.5% of the population identifies as White.
30.6% of the population identifies as Black.
9.1% of the population identifies as Hispanic.

Tampa and Jacksonville seem very similar in terms of demographics. However, the cities are politically different.

Jacksonville votes more Republican whereas Tampa is more Democratic.

Average Household Income

The average household income in Tampa is $87,818.

The average household income in Jacksonville is $74,873.

Commercial Real Estate Comparisons

Both Tampa and Jacksonville have many businesses, universities, and medical centers that create demand for a strong commercial real estate market.

Whether you opt to lease or buy commercial real estate, these areas remain popular for many sectors including education, hospitality, and tourism.

Average Commercial Rents

The average cost of commercial rent in Tampa is:

Class A Office Space: $35.77 per square foot.
Class B Office Space: $23.42 per square foot.
Class C Office Space: $18.96 per square foot.

The average cost of commercial rent in Jacksonville is:

Class A Office Space: $22.66 per square foot.
Class B Office Space: $20.26 per square foot.
Class C Office Space: $18.49 per square foot.

It is considerably more expensive to lease commercial real estate in Tampa than it is to lease commercial real estate in Jacksonville.

Commercial Vacancy Rates

The commercial vacancy rate in Tampa is 11.82%.

The commercial vacancy rate in Jacksonville is 14.21%.

CRE Market Outlook for 2022

The Tampa Bay is experiencing much more growth than Jacksonville in 2022, which is increasing the population and the level of inflation.

According to Fortune, Tampa is the second more popular migration destination in the United States, driving huge increases in prices by around 10%.

Commercial Activity Comparisons

Commercial real estate is an integral part of any business landscape.

To help you decide where to establish your business, here are a few key comparisons between different commercial real estate sectors in Tampa vs. Jacksonville.

Retail: In-Person Shopping Versus Online Shopping

Tampa wins when it comes to in-person shopping. The area has top-notch dining and shopping options including outlet malls, five large shopping malls, and many of the nation’s top retail stores.

Jacksonville has fewer shopping malls and retailers in general.

Like other cities, residents like to shop online. With a large number of grocery stores and retailers, residents of Tampa may opt to make more purchases in person.

Industrial: Warehouse Storage Activity

Jacksonville has more industrial space than Tampa, even though there are some industrial areas within the Tampa Bay region.

The area has nearly a dozen large industrial parks with room for future growth.

Office: Office Space Activity

Tampa has more office space than Jacksonville. Although Jacksonville has a few large office parks, the city’s largest office parks are in suburban areas.

Jacksonville also has fewer large office parks than Tampa.

It is more expensive to rent an office in Tampa than in Jacksonville. Tampa has more office space than Jacksonville.

Multifamily: Vacancy Rates & Leasing Activity

Tampa’s average vacancy rate is much lower than that of Jacksonville.

It can be incredibly difficult to secure an apartment within the Tampa Bay area and many of the apartments are rented sight unseen.

For owners of multifamily properties, Tampa might be a better choice, as the number of renters looking for apartments is higher than available apartments.

As a renter, Jacksonville is probably a better choice for more affordable options.

Deciding Which Location Is Right for Your Business

With a strong mix of established businesses and talented professionals, Tampa is an excellent choice for commercial business owners.

However, commercial real estate prices are a bit higher in Tampa. There are more choices of office space in Jacksonville.

While both cities have excellent transportation and plenty of recreational activities, Tampa’s amenities make it an attractive option for commercial tenants.

The cost of living in Jacksonville is lower than Tampa. That may be a factor for small businesses, which might not be able to afford expensive office space.

Office space in Jacksonville is less expensive and more plentiful than commercial real estate in Tampa.

Businesses looking for industrial or warehouse space can find what they need in the northeastern region of Florida, where Jacksonville has more property options and space to grow.