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Market Report

Jacksonville Office Market Report

2024 Investment Forecast

Dynamics in Trio of Major Jacksonville Submarkets
Provide Near-Term Optimism

Move-ins and minimal new supply restrain vacancy increase. A favorable state tax structure and a reputation as Florida’s lowest cost major office market motivated firms to relocate to the metro over the past two years, a span in which the number of local office-using jobs rose by nearly 20,000. Still, the CBD and suburbs each entered 2024 with 15 percent-plus vacancy. Fortunately, three areas that account for 70 percent of the metro’s office stock — Southside, Downtown Northbank and Butler-Baymeadows — possess dynamics that should aid near-term fundamentals. All are slated to note minimal supply-side pressure this year. Additionally, a collection of 20,000-square-foot-plus move-ins will aid local absorption, as they equate to 250,000 square feet. These commitments are highlighted by Jacksonville University College of Law and the City of Jacksonville each occupying more than 50,000 square feet in Downtown Northbank, with HD Supply moving into a similar-sized space in Butler-Baymeadows. In Southside, demand for available medical office space may grow, as the Mayo Clinic has received approval to add 210 acres to its San Pablo Road campus, while also adding five stories to an existing tower.
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