Q1 2018 Office Report
Date Published: 04/23/2018
The Jacksonville office market experienced a steady first quarter, with vacancy at 7.4%, down slightly from the previous quarter at 7.5%. Average asking rents increased from last quarter, averaging $19.22 per square foot per year. Net absorption in the first quarter for the Jacksonville office market was positive 94,998 square feet. The largest sale transaction in Q1 was the sale of Flagler Center for $136,000,000 to San Francisco-based Farallon Capital Management LLC. The largest lease transaction in Q1 was a 37,286 square feet renewal signed by Ameris Bank at 825 Baymeadows Way in the Butler/Baymeadows submarket. In the Central Business District, renovations continue on the 250,000± SF Barnett Bank building. University of North Florida has already signed a lease for 16,000 square feet on the fourth and fifth floors, which is scheduled for completion by January 2019. Work is scheduled to begin on the Laura Street Trio and a parking garage this spring. The Southside continues to be a hot market with the announcement that McKesson will lease 125,000 SF at Hines’ mixed-use development at Gate Parkway. McKesson will relocate from its Southpoint location by Summer 2019.