October 21, 2019
The availability rate for office space in Jacksonville ticked up from 10.7% to approximately 11.1% in Q3 2019, according to a recent report from Colliers International, Northeast Florida. While this is the largest step backward for the Jacksonville office market since mid-2016, it is important to note that the availability rate is still lower than pre-recession level, noted the report.
Even as availability grows, market rent continues to climb as well, reaching nearly $21-per-square-foot in Q3 2019. This represents a 1.5% increase compared to the second quarter of 2019, and a 5.7% increase from the third quarter of 2018.
The age of Jacksonville’s office stock has contributed to a surge of capital spending on office space, and a clear separation of the market between those willing to spend on improvements and those who are not. Those in the former category are seeing a return on that investment, while those in the latter group are likely losing tenants and suffering through mediocre occupancy, notes the firm.
This quarter has seen a split in geographical activity, according to the firm. Downtown has moved slower relative to the Belfort/St. Johns Town Center corridor. Colliers’ current Innovation Park (pictured) listing is an example of both trends, going from 0% leased to nearly 85% in the last 18 months, after the owner invested $2.5 million in capital improvements.
For comments, questions or concerns, please contact David Cohen