Ranking in the top 50 for overall real estate prospects and the top 10 for homebuilding prospects, according to ULI’s Emerging Trends in Real Estate report, there’s no doubt that Jacksonville is undergoing serious growth.
But why is this popular, North Florida coastal city a strong prospect for new construction projects and what sets it above other Florida cities? Here are four top reasons investors and developers should take a second look at the Jacksonville market.
Good job and population growth are driving solid development.
Forbes says, “Robust job and population growth, as well as great affordability, greet prospective investment property owners in Jacksonville.” The National Magazine cites an 8% growth rate in population in the past five years as well as an overall population growth rate of 24% since 2000.
Jacksonville also has a rental rate increase 2.1% higher than the national average and is 13th in population growth nationwide. The city is also home to two Naval bases as well as national names such as the Sally Corporation, CSX Corporation, Southeastern Grocery, and Mayo Clinic. These organizations, combined with new tourism, construction, manufacturing, and professional services opportunities, have contributed to strong gains within the last year.
Capital is widely available for opportunistic and value-add deals.
With strong growth in the area, investors are ready to provide capital for a number of opportunistic projects in the area. Because of the growth in professional services, there is an influx of young professionals to the area who expect value-added options in their communities, while new businesses need someplace to call home, boosting small commercial sales significantly.
Debt capital is widely available.
Because of the growth in the economy and in construction, debt capital for projects in and around the Jacksonville area is widely available. There are a number of financial institutions who are looking for business opportunities. With the strong increase in home sales averaging 6.5% annually, finding capital for construction business growth is much simpler than in other markets.
As a slow and steadily growing market, Jacksonville provides stability for investors that are concerned about oversaturation, hefty competition, and lack of capital, but these aren’t the city’s only attractive features. Jacksonville offers cultural diversity, high employment rates, and a multitude of entertainment options. It is the top-ranked city in Florida for entrepreneurs according to Business.org. Another advantage is Jacksonville’s beachfront property is more affordable than other Florida cities. Below are Jacksonville’s top rankings of 2018 according to http://jaxusa.org/tools-resources/rankings/
- # 8 City where the quality of life is on the rise
- #9 Best city to live in right now
- #5 Best city for Millenials
- #2 best state for business
Live Oak Contracting closely monitors the market landscape to ensure we deliver the highest rate of return on each project. One example of how we are contributing to positive growth in our area is with new multifamily development along Philips Highway, the San Marco Promenade. Once complete, the community will boast 284 units and a number of modern amenities desired by today’s renter. Learn more about our services and how we can bring your project to fruition by contacting us today.