Jacksonville, Florida, Multifamily Investment Report

The Jacksonville region is one of the most attractive MSAs in the country for multifamily development and investment. Its strong population and employment growth, plus rising income levels continue to drive demand. In fact, 2019 marked the fourth consecutive year that multifamily investment sales crossed the billion-dollar mark in the Jacksonville market. [i] And according to CBRE’s 2021 Market Outlook, Jacksonville is one of the Southeast metro areas that has responded the best to the economic challenges caused by COVID-19 and is consequently well-positioned for solid performance in 2021.[ii]

Attractive Lifestyle Drives Growth

Jacksonville is North Florida’s largest MSA with a population of 1.5 million and is the sixth-fastest-growing MSA in the country.[iii] From 2013 to 2018, Jacksonville’s population grew by over 10%, far outpacing the national average of 3.5%.[iv] According to Colliers International, the primary growth driver is in-migration, fueled by the region’s relative affordability, strong demographics, skilled labor pool, high quality of life, and the state’s business/tax-friendly attitude. EMSI, a labor market analytics firm, ranked Jacksonville as the #1 city for talent acquisitions last year, and Forbes named Jacksonville as the #2 best city for young professionals.[v]

It’s Where the Jobs Are

Bordering the Florida/Georgia line, the Jacksonville region is central to the booming Southeast, and naturally positioned for growth. According to the Jacksonville region’s economic development agency, one in every six jobs is in the health and sciences sector. The region’s healthcare landscape includes Mayo Clinic, a Baptist MD Anderson Cancer Center, the University of Florida Proton Therapy Institute, and cutting-edge medical companies including Medtronic, McKesson, Availity, and Forcura.

In addition to healthcare, job growth is found in manufacturing, logistics, financial services, and technology. Jacksonville is now home to over eighty national/divisional headquarters, three Fortune 500, and five Fortune 1000 companies.

Strong Multifamily Market

Colliers International reported that the Jacksonville multifamily market continued its strong record of growth in the final months of 2019—with Q4 marking the 19th consecutive quarter that overall multifamily occupancy remained above 94%.[vi] And Mashvisor, in its review of top Florida multifamily markets, ranked Jacksonville #4, with a multifamily cap rate of 2.0%. [vii]

Resilient Multifamily Market

According to YardiMatrix, the Jacksonville metro area ranks #3 in terms of investment activity, with 11 deals closed in the first four months of 2020 for a total of $349 million, up 50 percent from the same time last year.[viii] By year’s end, developers are projected to deliver more than 3,000 units in Jacksonville, but that will depend on the overall impact that the pandemic has on construction activity. Early indications are that the region’s construction sector remains strong, with Jacksonville being the only MSA in Florida to show a rise in construction employment between March and April, the height of the pandemic shutdown.[ix] CBRE, which cited Jacksonville as one of the best opportunities for achieving expected revenues and seeing solid market performance in 2021, also noted that multifamily has weathered the 2020 recession better than most property sectors and is looking at a quicker rebound next year. [x]

The Opportunity

Lloyd Jones, LLC has extensive experience as an investor, owner, and manager in the Jacksonville multifamily market. We have worked with investors to find the right multifamily property to generate the best possible returns for four decades, through numerous economic cycles. If you are looking to capitalize on multifamily opportunities in the Jacksonville market, please let us know. To learn more, visit https://www.lloydjonesllc.com/

 

[i]     https://www2.colliers.com/en/research/jacksonville/q4-multifamily-report-2019

[ii]    https://www.cbre.us/research-and-reports/2021-US-Real-Estate-Market-Outlook-Multifamily

[iii]   https://jaxusa.org/tools-resources/rankings/

[iv]   https://www.globest.com/2020/02/11/jacksonvilles-multifamily-sales-cross-1b-mark/

[v]    https://jaxusa.org/industry/headquarters/

[vi]   https://www.globest.com/2020/02/11/jacksonvilles-multifamily-sales-cross-1b-mark/

[vii]  https://www.mashvisor.com/blog/how-to-find-multi-family-homes-for-sale-in-florida/

[viii] https://www.multihousingnews.com/post/top-5-florida-markets-for-transaction-activity/

[ix]   https://www.jaxdailyrecord.com/article/jacksonville-only-area-in-state-to-show-a-rise-in-construction-employment-between-march-and-april

[x]    https://reintelligent.com/cbre-outlook-quicker-rebound-expected-for-multifamily-in-2021/

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