The city’s workforce with strong industries like advanced manufacturing and financial services, have created opportunities for collaboration between public and private sectors which position it for steady growth, similar to the previous year.
At the Jacksonville Business Journal’s Economic Outlook event on Jan. 21, experts pointed to rapid population growth, strong partnerships, and higher education collaborations as key drivers of economic momentum.
A panel of local industry leaders gathered to discuss Jacksonville’s economic outlook for the year ahead. Participants included Billy Zeits, Vice President of Government Affairs at Corner Lot; Aundra Wallace, President of JAX USA Partnership; Barbara Ritter, Dean of the Davis College of Business at Jacksonville University; and Tommie Reilly, Managing Director at CBRE.
While factors like fluctuating interest rates, supply chain issues, labor shortages, and housing affordability pose challenges, the panelists remained optimistic. They emphasized Jacksonville’s advantages, including its low cost of living and prime location for distribution networks.
“Our region is growing at a rate of 1.4%, and our colleges are now engaging with around 17,000 individuals annually,” Wallace shared.
“That growth has helped make Jacksonville the second-hottest job market in the U.S. and the top market on the East Coast. To stay competitive in economic development, we need to ensure we maintain a strong talent pipeline.”
However, that talent pipeline faces hurdles. Ritter pointed out declining confidence in higher education and a looming “demographic cliff” due to fewer 18-year-olds entering college. She stressed the need for industry leaders to rethink their role in workforce development and view one another as collaborators rather than competitors in meeting future employment demands.
Jacksonville’s ongoing expansion has been fueled by six key sectors: advanced manufacturing, transportation logistics, life sciences, financial services, technology services, and corporate
relocations—areas where JAX USA continues to focus its recruitment efforts.
Over the past four years, Jacksonville has added more than 15,000 jobs and attracted $5.5 billion in capital investment, thanks to strategic economic development initiatives. Wallace expects transportation logistics and advanced manufacturing to remain strong in 2025, and return-to-office trends could make the city even more competitive for financial services firms.
As job creation and company relocations continue, Jacksonville must also accommodate a growing workforce, which directly impacts the real estate market.
Although office markets nationwide have struggled since the pandemic, leasing activity in Jacksonville increased in 2024 compared to 2023, a trend expected to continue. However, downtown remains a challenge, with high vacancy rates and low rents making it difficult for property owners to fund necessary renovations. Reilly emphasized the need for support and potential incentives to help downtown landlords make improvements and attract tenants.
“A thriving downtown needs both businesses and residents,” she noted.
To that end, thousands of residential units are currently under construction or recently completed in downtown Jacksonville. Corner Lot alone has 700 apartments and townhomes available for lease in the greater downtown area.
“We want students to live in our apartments, buy our townhomes, and work in our office buildings for the international companies moving here,” Zeits said. “After facing one of the toughest capital and debt markets in history over the past two years, continued collaboration is key.”
Increasing downtown’s residential density could reinvigorate the area and boost commercial real estate. However, Jacksonville isn’t the only region experiencing growth.
Neighboring St. Johns, Clay, and Nassau counties have also expanded rapidly, with their school districts ranking among the state’s top 10. But Zeits noted that political challenges in these areas sometimes hinder development, even as rising housing costs highlight the need for more affordable options for public service workers and entry-level employees in Northeast Florida.
“We need to create attainable housing along major transportation corridors, fill office spaces with new talent, and retain students to build our workforce,” he said. “That’s how we achieve long-term sustainability.”
While panelists remained optimistic about Jacksonville’s future, they acknowledged that uncertainties in the broader economy could impact local markets.
“There’s an ‘uncertainty tax’ on almost everything right now because we don’t yet know how quickly new policies will take effect and influence consumers,” Reilly said. “But overall, there’s a sense of optimism—people are ready to move forward.”
Information from: https://www.bizjournals.com/jacksonville/news/2025/01/30/economic-outlook-2025.html
For homes currently listed in neighborhoods in Jacksonville, follow our link here: https://www.fluidrealty.com/jacksonville-neighborhoods/
