Play Live Radio
Next Up:
0:00
0:00
Available On Air Stations
First Coast

Jacksonville Offices Slightly Cheaper To Rent, But Analysts Predict Rents To Rise This Year

Jaxnorthbankskyline.jpg
Mathew105601
/
Wikimedia Commons
Downtown Jacksonville

In the last quarter of last year, office renters were paying a little bit less, on average, than in the summer and early fall. 

Average Jacksonville office rents dropped slightly to an average of $19.55 per square foot, while the vacancy rate tightened to 7.8 percent.

VacancyVsRent.PNG
Credit Colliers International
/

That's according to a new report from Collier International that includes data from CoStar.

The Butler Boulevard area was the most active area for Class A office space, while the downtown office market is seeing a boost from VyStar’s purchase of the Suntrust Tower.

With the VyStar purchase, the only large blocks of space still left on the Northbank side of downtown are in the Bank of America Tower and One Enterprise Tower, according to Colliers International.

Colliers International believes the drop in rent was a statistical anomaly.

“The reduction in average rent does not align with our experience, as rents have been edging higher for some time now,” the report stated.

In fact, the report forecast a reversal in the rent trend and increased occupancy in the Jacksonville office market in 2019.

"We believe that the strength of the local economy should continue to drive improvements," it said. 

GraphicOneOverview_0.PNG
Credit Colliers International
/
AverageRentsBySubmarket.PNG
Credit Colliers International
/

Bill Bortzfield can be reached at bbortzfield@wjct.org, 904-358-6349 or on Twitter at @BortzInJax.

Photo used under Creative Commons license.