Jacksonville's Vacancy Decreases to 12.5%

The Jacksonville Office market ended the third quarter 2013 with a vacancy rate of 12.5%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 185,742 square feet in the third quarter. That compares to positive 485,672 square feet in the second quarter 2013. Vacant sublease space increased in the quarter, ending the quarter at 136,794 square feet.
Tenants moving into large blocks of space in 2013 include: Advanced Disposal Services, Inc. moving into 56,198 square feet at 90 Fort Wade Rd; Concorde Career Colleges Inc. moving into 46,447 square feet at 7259 Salisbury Rd.; and Fidelity National Financial, Inc. moving into 36,825 square feet at 601 Riverside Ave.
Rental rates ended the third quarter at $17.35, an increase over the previous quarter.
A total of three buildings delivered to the market in the quarter totaling 14,902 square feet, with 98,523 square feet still under construction at the end of the quarter.
This trend is compared to the U.S. National Office vacancy rate, which decreased to 11.6% from the previous quarter, with net absorption positive 23.48 million square feet in the third quarter. Average rental rates increased to $21.75, and 244 buildings delivered to the market totaling more than 12.20 million square feet. 

Prepared by: CoStar