Jacksonville Office Market Report

Major recent leases underline tenant mindsets. Jacksonville’s central business district marked the midpoint of this year with the third-lowest vacancy rate among major U.S. East Coast metro CBDs. An overall downtown rate of 14.5 percent was bolstered by stronger net absorption on the Northbank, including the opening of utility provider JEA’s new headquarters. The next largest lease signed so far this year, by Stellar Energy, was outside of the CBD in Southside. The energy systems firm will be the future anchor tenant at a suburban campus undergoing renovations to offer more lifestyle amenities, including walkable green space. These inter-metro relocations reflect a broader trend among tenants for modern space that offers employees perks not found at home. New or updated space will continue to appeal to organizations with sufficient budgets.