Report: Jacksonville Office Market Remains Steady

The availability rate for office space in Jacksonville has remained virtually unchanged in the second quarter at 8.5%, while average market rents moved up to $20.92-per-square-foot, a 5.2% increase year-over-year, according to the Colliers Jacksonville Office Q2 2019 market snapshot.

Per the report, the upwards move reflects the recent introduction of new, class A office space and the relative tightness of the market. The presence of aging existing inventory as well as the recent new deliveries, which are being leased at a substantial gap in pricing, have created an ‘interesting dynamic,’ the report states.

Large corporate users continue to be the point of focus in the Jacksonville office market, as large blocks of space are limited and in most cases outdated. Additionally, Deutsche Bank’s recent announcement that it will cut 18,000 jobs is looming over the Jacksonville market, as the bank currently occupies a large amount of space in the JTB/Baymeadows submarket.

Noteworthy transactions in the second quarter include Starwood’s acquisition of Deerwood Park North, Deerwood Park South, and JTB Center from TPG and Touchton Properties for $231 million; as well as Viking Partners acquisition of Cypress Point Business Park for $35.8 million. Additionally, the iconic Wells Fargo Tower in Jacksonville remains on the market.

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