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.
That's according to a new report fromCollier 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.
Bill Bortzfield can be reached at bbortzfield@wjct.org, 904-358-6349 or on Twitter at @BortzInJax.
Photo used under Creative Commons license.
