Florida is seeing a real estate boom now taking place and this surge in the market is leading real estate developers to look to untapped markets in the Sunshine State.

Jacksonville is being eyed by real estate developers, where opportunity abounds and it’s ready for its time in the sun. As Florida seems to have emerged as a pandemic winner with headlines arriving every other day of a major relocation or new office expansion taking place, markets such as South Florida or Tampa Bay have seen increasingly high rents and development costs.

In addition, the state’s population continues to swell in response to the flight from high-tax and cold-weather states. With the go-to markets more crowded than ever, real estate developers have looked to quieter but no less robust markets for the next wave of opportunity and development and Jacksonville fits the bill.

While there are macroeconomic concerns, such as the impact of inflation, many real estate developers remain bullish on Florida and are particularly excited about the potential the Jacksonville market offers.

They say Jacksonville with lower density, a rising population, a coast to rival anywhere else in the state and a unified government administration between the city and Duval County, market offers unique opportunities that are difficult to find anywhere else in the Sunshine state. 

Jacksonville stands out above the rest

To its credit, Jacksonville has recognised the moment and is looking to capitalise on these developments with a massive effort to redevelop a portion of the city’s Downtown along the St Johns River to the tune of $1.1 billion. Part of the development includes Miami-based Related Group’s 327-unit multifamily project at the site of the former River City Brewing Company. 

The Downtown redevelopment master plan includes proposals for commercial office space; mixed-use multifamily and for-sale condominium residential; retail; an entertainment-oriented hotel; a food hall; and a convention/events centre.

The combination of highly amenitised housing, with grocery stores, recreational facilities, such as gyms, all near potential job opportunities, will continue to grow in popularity for a variety of reasons, chief among them their strong rebound and continued success due to the sheer pent-up demand. 

Duval County and Jacksonville have found themselves among the ranks of cities that have seen over 100,000 new residents over the last 10 years. As part of the Greater Jacksonville area, St Johns County also saw its population grow during that span.

The county added more than 83,000 residents, an increase of 43.9 per cent. With Florida expected to grow by an estimated 300,000 people a year up to 2025, it’s safe to say Jacksonville stands to benefit from the growth with new houses, new businesses, a growing economy and an even brighter future.

Laura Gonzales, Regional Managing Director of commercial real estate firm, Franklin Street’s Jacksonville office explained that, “Jacksonville has benefited from the economic boom and rapid immigration. We have a strong business community that is open for business, more and more companies are relocating here, and we are experiencing strong population growth. In addition, we have affordable commercial real estate compared to similarly-sized markets, no state taxes and available land.”

Affordable rents will remain top of mind for many across Florida, as markets such as South Florida or Tampa Bay have risen by double digits. The South Florida rental market saw an increase of 35.8 per cent, with Tampa Bay close behind at 34.5 per cent. In Jacksonville, however, rents have risen a more reasonable 15.2 per cent, and potential residents and investors alike are taking note.