Downtown Jacksonville is under construction.
This statement that’s often repeated by members of the Downtown Investment Authority was exemplified in Downtown Vision Inc.’s annual State of Downtown report, which released Wednesday and will be available online Dec. 3.
The report boasts $2.23 billion in development under construction with a total of $8.8 billion in the pipeline. The billions of investments in downtown encompass every aspect necessary for a thriving city: residential units, restaurants and retail, hotels, cultural institutions, entertainment venues and transportation.
Most of the development includes several of such uses. For example, Gateway Jax broke ground on the first phase of Pearl Square, a $500 million project that will bring over 1,000 apartments, office space, a grocery store, additional retail and parking to the North Core neighborhood.
Projects like Pearl Square and the recently approved Related Group tower at the former River City Brewing site will increase downtown’s residential units, which largely remained stagnant over the last year.
Residential progress
In 2023, the report stated there were more than 4,600 units and 7,695 people living in downtown, but this year, the number of units only rose by about 100 units, and the number of people living downtown fell by 38.
Despite the lack of year-over-year growth, the number of downtown residents has increased by more than 50% in the past five years, which DVI said is supported by a variety of new housing options, from modern high-rises to historic adaptive reuses, catering to a range of budgets and preferences.
More than 2,000 units are under construction today with another 3,000 in review with open units 96% occupied, so downtown’s population is still expected to surpass 10,000 “soon,” the report states.
This year, the first of 91 Johnson Commons townhomes in LaVilla opened, marking the first for-sale, multifamily properties in the area. Large-scale apartment projects are also nearing completion, including Artea at Southbank, a transit-oriented development; the Lofts at Cathedral, a mixed-income community that includes the renovation of the historic YWCA building; and One Riverside, to be anchored by a Whole Foods.
Office woes
Downtown serves as a major employment hub with 53,450 employees and 7.95 million square feet of office space. Ongoing investments in tenant improvements and renovations attempt to attract new businesses and adapt to changing office needs.
Commercial lease rates are stable, but vacancy is high at 26%, according to the report, about double the vacancy of other Florida Central Business Districts like Brickell and Downtown Miami, Tampa, St. Petersburg and Orlando. The other metros report 11.8% to 17.6% vacancy in their CBDs.
Even with high vacancy, 400,000 square feet of new office space is on its way in planned developments like The Shipyards and Union Terminal Warehouse.
Office rents are also much lower than other Florida CBDs, but The Shipyards will be the first new, Class A office space built in downtown in decades, which should warrant higher rents.
“Downtown’s office market is poised to bounce back, ensuring it remains a vital part of the city’s economic future,” the report states.
Hotel boom
Next door to the construction site of the new Class A office building and across the street from EverBank Stadium, which is slated for $1.4 billion in renovations, is the Four Seasons, providing a luxury hospitality option for visitors.
The report shows a demand for hotel rooms tied to business, tourism and events in the city’s core. Domestic travel is up nearly 4% from last year, and visit nights grew by 6.6%
There are 2,600 available rooms and more than 500 rooms planned.
In May 2024, the 100-room, $24 million Home2 Suites by Hilton opened, becoming the second select-service hotel in the Brooklyn neighborhood since 2022, following the Residence Inn by Marriott. A recently announced AC Hotel by Marriott will further expand lodging options in this growing area.
The Marriott Jacksonville Downtown has announced a $6 million renovation of its guest rooms, and the DoubleTree by Hilton Hotel Jacksonville Riverfront on the Southbank is planning a $14.6 million overhaul. This latter project will update guest rooms, the exterior, pool deck, and dining options and introduce a new riverfront dining concept, culminating in the rebranding of the property as Hotel Bellamy.
Recruiting retail
Downtown’s growing number of rooftops have created the demand for restaurants, specialty retailers and service providers. Downtown Jacksonville has experienced a 107% recovery rate in retail chains since 2019, according to Placer.ai.
Since 2020, 38 new retail stores and restaurants have opened, with more than 20 additional locations announced. Several locations are currently under construction including Baby Got Brunch, Co-op Frosé & Eatery, Decca Live, Pizza Dynamo, Pour Taproom and Prudential Club Garden, Lounge & Liquors with many more in permitting review.
The riverwalk is being extended along both riverbanks with improvements underway to enhance the waterfront, including new bulkheads, floating docks, kayak launches, piers and marinas.
Several themed destination parks are in development, many linked by the riverwalk. This year, the city opened Lift Ev’ry Voice and Sing Park in LaVilla, the first phase of Artist Walk in Brooklyn and Friendship Fountain on the Southbank.
Riverfront Plaza, at the site of the former Landing, is under construction. The Musical Heritage Garden, Shipyards West Park and Metropolitan Park are funded and in the design phase.
Private, mixed-use developments like One Riverside and RiversEdge are allocating land for multi-acre parks, and new riverfront projects are required to include waterfront dining to qualify for incentives.
Construction is underway from the Sports & Entertainment District to the North Core and across the river to the Southbank, but there’s still work to be done, including property dispositions of city-owned, riverfront parcels and activating Hogan and Laura Streets. And there are roadblocks like the redevelopment of the Laura Street Trio, which the city has filed a foreclosure lawsuit on for a second time.
By Emma Behrmann, Reporter
Jacksonville Business Journal