jacksonville FL
2015 JACKSONVILLE OVERVIEW

Industrial: The Northeast Florida Market appears to have emerged from the Great Recession in 2014. All market indicators improved, marking the third consecutive year of increasing asking rental rates coupled with absorption and declining direct vacancies. The year was marked by significant portfolio sales, large lease transactions and a modest return of speculative development.

Office: The Jacksonville office market showed evidence of a continuing slow-but-steady recovery in 2014 from its recessionary past. By traditional standards, both Class “A” and Class “B” office space showed modest gains, though offset by a persistent lack of rent growth. The overall vacancy rate decreased slightly year-over-year (15.9% vs 17.1%), and absorption grew slightly over the previous year. Any evidence of rate growth was limited to the Butler/Baymeadows submarket, where relatively strong demand for Class “A” suburban space continued to follow historical trends.

While leasing activity advanced modestly, office building sale activity was remarkably strong, as investors sought relatively higher yield opportunities in an undervalued market. Investment sales included both downtown buildings (Bank of America Tower, Wells Fargo Centre and the Aetna Building), as well as suburban portfolios (Flagler Center and DRA portfolio).

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JAX Graham Report Industrial 2015

JAX Graham Report Office 2015