The Northeast Florida retail commercial real estate market continues to thrive in 2025, while industry professionals are growingly optimistic about major new retail development finally taking shape.
Over the last few years, the supply and demand imbalance for premier retail space has handicapped expansion efforts for retailers looking to both enter the market and expand their existing Jacksonville Metropolitan Statistical Area presence.
High interest rates and construction costs have made any new construction virtually impossible, leading to very low vacancy in the most desirable retail nodes.
However, the ever-growing residential population, retailer comfortability with increasing rents, stabilizing economic factors and sophisticated, well-capitalized developers are setting the stage for a transformative period of retail development in the region.
Notable planned developments include Regency Centers’ recently announced The Village at Seven Pines, which will bring 175,000 square feet of high-quality retail near the St. Johns Town Center, along with the groundbreaking of the $2 billion mixed-use Gateway Jax, which looks to kick-start an urban retail resurgence in Downtown Jacksonville.
Despite the current tight market, the most aggressive retailers continue to push through barriers to secure new locations.
Recent market entrants in the quick-service restaurant category include Habit Burger, Yum! Brand’s burger concept, along with Raising Cane’s, both of which have secured their first location and are likely to announce more commitments in 2025.
Automotive users, such as Valvoline Instant Oil Change, and drive-through-only coffee chains, like Dutch Bros, are also continuing their rapid expansion through the region.
The retail sector surprised the entire commercial real estate industry with its resilience through COVID-19 related shutdowns, and Northeast Florida emerged as a major benefactor of nationwide population relocation trends.
As a result, Jacksonville’s retail market remains strong and is poised for continued growth in 2025.
Kelly Pulignano provides lease management services for landlords and developers in Northern Florida and Southern Georgia, and represents retail tenants and buyers in market strategies.