Colliers: Jacksonville’s Office Availability Rate Remains Historically Low

The Jacksonville office market closed out 2019 with a 10.7% availability rate, which is the lowest rate the market has ever seen, according to Colliers International Northeast Florida.

However, Colliers reports that the vacancy rate stands in contrast, having increased since early 2018 to approximately 9%. The increasing vacancy rate reflects the most significant construction in the office market since before 2008. But, Colliers notes that while construction is strong by recent historical standards, it is still half of what it was pre-crisis.

The relative tightness in the market has kept rental rate growth strong for the last year, spending all of 2019 above 5%, compared to 2018. The firm predicts that increases in total stock will likely contribute to a slowdown in rental rate growth, but that limited construction volume suggests the balance of power will remain in landlords’ favor for the foreseeable future.

UrbanX Group’s Andrew Hellinger has been announced as a speaker for Connect South Florida on Feb. 26, 2020. For more information, or to register, click here.

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