Why Is Jacksonville One of the Best Markets for Commercial Real Estate Investment?
Jacksonville has emerged as one of the strongest commercial real estate markets in the Southeast, and the numbers back it up. The city officially surpassed 1 million residents in 2024, ranking among the top 15 fastest-growing metropolitan areas in the United States. With GDP growth of $130 billion in 2023 and an economy that expanded 3.6% in 2024, Jacksonville offers commercial property investors a rare combination of population growth, job creation, and relative affordability compared to South Florida markets like Miami and Fort Lauderdale.
The Wall Street Journal and Moody's Analytics named Jacksonville as having the second strongest job market in the nation in 2025. No other city in Florida has more Fortune 500 companies, and more than 150 corporate, regional, and divisional headquarters now operate in the region. That kind of economic foundation creates sustained demand for office, industrial, retail, and multifamily space - and makes commercial lending in Jacksonville attractive for both borrowers and lenders.
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Whether you are purchasing your first commercial property in the Southside corridor, refinancing a multifamily portfolio in Riverside, or building ground-up industrial space near the port, understanding your financing options is critical. This guide covers current commercial loan rates in Jacksonville, the major loan programs available, submarket-level data, and practical steps to secure funding. If you need to speak with a lender today, contact our team to discuss your project.
What Are Current Commercial Loan Rates in Jacksonville?
Commercial mortgage rates in Jacksonville currently start as low as 5.07% for conventional permanent loans, with Florida-wide averages sitting at approximately 5.17% as of early 2026. However, the rate you qualify for depends heavily on the loan type, your property's debt service coverage ratio, the asset class, and your experience as a borrower.
Here is a breakdown of what Jacksonville borrowers can expect across the major loan programs:
- Conventional/CMBS loans: 5.07% to 7.50%, with 5- to 10-year fixed terms and 25- to 30-year amortization
- SBA 504 loans: 5.50% to 6.75% on the CDC portion, with up to 25-year terms and just 10% down
- Bridge loans: 7.50% to 11.00%, typically 12- to 36-month terms for transitional assets
- DSCR loans: 6.50% to 9.00%, based on the property's cash flow rather than personal income
- Hard money loans: 9.00% to 12.75%, for fix-and-flip or time-sensitive acquisitions
- HUD/FHA multifamily: 5.64% to 5.94%, the lowest rates available but with longer processing times
Most commercial mortgage loans in Jacksonville today are fixed for 5, 7, or 10 years and come with a 25- to 30-year amortization schedule. Rates have stabilized compared to the volatility of 2023 and early 2024, giving borrowers more predictability when underwriting deals.
Use our commercial mortgage calculator to estimate your monthly payments based on current rates.
Which Loan Programs Work Best for Jacksonville Commercial Properties?
The right loan program depends on your investment strategy, property type, and timeline. Jacksonville's diverse market supports everything from long-term SBA financing for owner-occupied buildings to short-term bridge capital for value-add repositioning.
SBA 504 Loans
Jacksonville businesses benefit significantly from SBA loans for commercial real estate. The SBA 504 structure works like this: your business contributes 10% down, a bank partner provides a 50% first mortgage, and the SBA-backed Certified Development Company covers the remaining 40% at a fixed rate for up to 25 years. For a Jacksonville business buying a $1 million commercial property, that means just $100,000 down.
The Florida Business Development Corporation (FBDC) is a major SBA 504 lender active throughout Jacksonville, and they also offer a 504 Velocity Bridge Loan Program for projects that need interim financing while permanent SBA funding is processed.
Bridge Loans
For investors pursuing transitional opportunities - a vacant office building Downtown that needs repositioning, or a retail center in San Marco with below-market leases - bridge loans provide the short-term capital to execute a business plan before refinancing into permanent debt. Read our complete bridge loan guide for more details on qualification requirements.
DSCR Loans
DSCR loans are ideal for Jacksonville rental property investors who want to qualify based on the property's income rather than their personal tax returns. Lenders in Jacksonville typically require a DSCR ratio of 1.0 to 1.25 or higher, meaning the property's net operating income must cover the debt service by that margin. Our DSCR calculator can help you determine if your property qualifies. Learn more about our DSCR loan programs.
Hard Money Loans
For time-sensitive acquisitions or properties that do not qualify for conventional financing, hard money loans offer fast closings - often in 7 to 14 days - with approval based primarily on the property's value rather than borrower financials.
How Is the Jacksonville Commercial Real Estate Market Performing in 2025?
Jacksonville's commercial real estate market is entering a stabilization phase in 2025-2026 after several years of rapid growth and adjustment. Each property sector tells a slightly different story, and understanding these dynamics is essential for making smart financing decisions.
Office Market
Jacksonville's office market recorded nearly 150,000 square feet of positive net absorption in Q3 2025, with vacancy dropping 50 basis points quarter-over-quarter to 20.6%. While that vacancy rate remains elevated compared to pre-pandemic levels, the trend is moving in the right direction. Downtown Jacksonville's office vacancy sits at approximately 26% across its 7.9 million square feet, though the massive $8 billion downtown revitalization pipeline is expected to transform this submarket over the coming decade.
The office market recorded $76 million in total transaction volume in Q3 2025, the highest figure since Q2 2024 and an increase for the second consecutive quarter. Average office rents in Jacksonville sit at approximately $22.70 per square foot.
Industrial Market
Jacksonville's industrial sector faces short-term headwinds from significant new supply. Approximately 7 million square feet of largely speculative industrial space hit the market in 2025, pushing the overall industrial vacancy rate up 350 basis points year-over-year to 10.8% by Q4 2025. The West Jacksonville submarket, the largest with up to 71 million square feet of industrial space, saw vacancy rates approach 12%.
However, the long-term outlook remains strong thanks to Jacksonville's strategic position as a major logistics hub, its deepwater port (JAXPORT), and available workforce. Industrial rents average $11.61 per square foot.
Retail Market
Retail is the clear bright spot in Jacksonville's commercial market. The sector maintained a low 4.8% vacancy rate in Q4 2025, despite adding nearly 600,000 square feet of new construction throughout the year. Jacksonville accounted for more than 5% of all retail demand across the country in 2025, with over 2 million square feet of retail leasing from new and renewing tenants. Positive net absorption of 301,135 square feet in Q3 2025 alone demonstrates ongoing demand.
Multifamily Market
The multifamily market is showing clear signs of recovery. Construction starts fell by 61% over the past year, which means the supply pipeline is finally tapering. Occupancy in stabilized properties rose to 93.2% by mid-2025, and while asking rents dipped 1.0% to $1,505 per month, the fundamentals point toward renewed rent growth by mid-to-late 2025. Multifamily cap rates in Jacksonville sit around 5.8%, slightly above the Florida average of 5.5%.
Which Jacksonville Submarkets Offer the Best Commercial Investment Opportunities?
Jacksonville is the largest city by land area in the contiguous United States, which means submarket selection matters enormously for commercial real estate investors and their financing strategies.
Downtown Jacksonville
Downtown is undergoing a massive transformation, with $8 billion in development projects in the pipeline. Gateway Jax, backed by JWB Real Estate Capital and DLP Capital, has acquired 22 acres encompassing more than 20 city blocks for a mixed-use redevelopment projected to exceed $2 billion over the next decade. Downtown commands the highest multifamily asking rents in the metro at approximately $1,648 per month. For investors, this submarket represents high upside potential but requires patience and comfort with redevelopment risk. Bridge loans and construction financing are the primary loan products here.
Southside and Town Center
The Southside and Arlington submarkets account for roughly 60% of the MSA's apartment units, and demand has been particularly strong - these areas absorbed approximately 60% of total multifamily absorption over the past year. Town Center continues to attract national retailers and corporate tenants, making it a prime target for retail and office acquisitions. Conventional CMBS and SBA 504 loans work well for stabilized assets in this corridor.
Riverside and Avondale
These historic neighborhoods attract boutique retail, restaurant, and creative office tenants willing to pay premium rents for walkable, character-rich environments. Commercial properties here tend to be smaller in scale but command strong per-square-foot values. DSCR loans and small-balance commercial mortgages are common financing tools for Riverside and Avondale acquisitions.
San Marco
San Marco continues to be one of Jacksonville's most desirable commercial districts, with a mix of retail, dining, and professional office space. The neighborhood's established identity and consistent foot traffic make it attractive for retail investors. Properties here hold value well and are relatively easy to finance with conventional programs.
Jacksonville Beaches
Jacksonville Beach, Neptune Beach, and Atlantic Beach offer strong commercial opportunities in hospitality, retail, and mixed-use development. Jacksonville Beach is consistently rated among the top investment neighborhoods in the metro, with strong rental income potential driven by tourism and local demand.
Northside and Westside
These submarkets are where industrial and logistics investment is concentrated. The Westside alone contains up to 71 million square feet of industrial space. While new supply has pushed vacancy higher in the short term, the proximity to JAXPORT and major highway interchanges makes this corridor essential for distribution, warehousing, and manufacturing tenants. Investors targeting industrial acquisitions here should consider bridge loans for properties with lease-up risk.
What Does the Commercial Loan Application Process Look Like in Jacksonville?
Securing a commercial loan in Jacksonville follows a structured process that typically takes 30 to 90 days depending on the loan program. Here is what to expect from initial inquiry through closing.
The documentation requirements vary by loan type, but most Jacksonville commercial lenders will ask for:
- Property financials (rent roll, T-12 operating statement, pro forma)
- Personal financial statement and credit report (unless DSCR-only)
- Business tax returns (2-3 years for SBA loans)
- Purchase agreement or refinance details
- Property appraisal and environmental reports
- Entity documents (LLC operating agreement, articles of organization)
For a streamlined pre-qualification on your Jacksonville commercial property, reach out to our lending team to get started.
How Do Jacksonville Cap Rates Compare to Other Florida Markets?
Cap rates are a critical factor in commercial loan underwriting because they determine how lenders value the property and calculate loan-to-value ratios. Jacksonville generally offers higher cap rates than South Florida markets, which means more cash flow per dollar invested - but it also means lenders may apply slightly higher rates to account for market differences.
Jacksonville's cap rate positioning makes it particularly attractive for DSCR-focused investors, since higher cap rates translate to stronger debt service coverage ratios. Industrial assets in the 4.5% to 5.5% range offer the tightest yields, reflecting strong investor demand for logistics space near JAXPORT. Office cap rates above 7% reflect lingering uncertainty but also present opportunities for value-add investors willing to reposition assets.
What Major Developments Are Shaping Jacksonville's Commercial Lending Landscape?
Several transformational projects are reshaping Jacksonville's commercial real estate market and creating new financing opportunities:
- Gateway Jax Downtown ($2B+): One of the largest urban-core revitalization projects in the U.S., expected to generate thousands of new jobs and transform more than 20 city blocks
- JAXPORT Expansion: Continued investment in the deepwater port supports industrial and logistics growth across the Northside and Westside
- $8 Billion Development Pipeline: Downtown Jacksonville's combined development pipeline exceeds $8 billion, fundamentally changing the city's commercial landscape
- Retail Expansion: Nearly 600,000 square feet of new retail construction delivered in 2025, with strong absorption rates demonstrating sustained consumer demand
These development trends create opportunities across the lending spectrum - from construction loans for new projects to permanent financing for stabilized assets in improving neighborhoods. Investment sales are projected to rise by up to 10% in 2025 as more capital flows into industrial and multifamily properties.
Frequently Asked Questions About Commercial Loans in Jacksonville
What is the minimum down payment for a commercial loan in Jacksonville?
The minimum down payment depends on the loan program. SBA 504 loans require just 10% down, making them the most accessible option for owner-occupied commercial properties. Conventional commercial mortgages typically require 20% to 25% down, while bridge loans and hard money lenders may require 25% to 35% depending on the asset and business plan. Investment properties generally require higher down payments than owner-occupied buildings.
How long does it take to close a commercial loan in Jacksonville?
Timelines vary significantly by loan type. Hard money and bridge loans can close in as little as 7 to 14 days. Conventional commercial mortgages typically take 45 to 60 days. SBA 504 loans take 60 to 90 days due to the dual underwriting process between the bank and the Certified Development Company. Pre-approval and having your documentation ready can shorten these timelines considerably.
What DSCR ratio do Jacksonville lenders require?
Most Jacksonville commercial lenders require a minimum DSCR of 1.20 to 1.25 for conventional loans, meaning the property's net operating income must be 20% to 25% higher than the annual debt service. Some DSCR-specific loan programs will go as low as 1.0, but expect higher interest rates at that threshold. Strong borrowers with lower-leverage requests may find lenders flexible on DSCR requirements.
Can I get a commercial loan for a mixed-use property in Jacksonville?
Yes. Mixed-use properties are common in Jacksonville submarkets like San Marco, Riverside, and Downtown. Most commercial lenders will finance mixed-use buildings, though underwriting requirements may vary depending on the residential-to-commercial ratio. SBA 504 loans work well when the business occupies at least 51% of the building. Conventional lenders evaluate the property based on the income from all uses combined.
Are commercial loan rates in Jacksonville different from the rest of Florida?
Commercial loan rates in Jacksonville are generally in line with statewide Florida averages. However, the specific rate you receive depends more on the loan program, property type, leverage, and borrower strength than on the metro area. Jacksonville's strong economic fundamentals and growing population tend to make lenders comfortable with the market, which can translate to slightly better terms compared to smaller or less established Florida metros.
What types of commercial properties can I finance in Jacksonville?
Jacksonville lenders finance virtually every commercial property type, including office buildings, retail centers, industrial warehouses, multifamily apartments (5+ units), mixed-use properties, self-storage facilities, hotels, medical offices, and special-purpose properties. The loan program and terms will vary by property type. For specialized assets, contact our team to discuss the best financing approach for your specific situation.