Thursday, January 23, 2014
Market Trend: Jacksonville's Office Vacancy Increases to 12.7%
Net Absorption Negative (79,085) SF in the Quarter The Jacksonville Office market ended the fourth quarter 2013 with a vacancy rate of 12.7%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (79,085) square feet in the fourth quarter. That compares to positive 177,583 square feet in the third quarter 2013. Vacant sublease space increased in the quarter, ending the quarter at 219,363 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 fourth quarter at $17.39, an increase over the previous quarter. There was 222,151 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 11.5% from the previous quarter, with net absorption positive 25.62 million square feet in the fourth quarter. Average rental rates increased to $22.06, and 177 buildings delivered to the market totaling more than 11.7 million square feet. For companies seeking to sell, purchase or lease office space in Jacksonville, please contact Chip Sistare at 904-421-8546. Investors and owners of office properties can count on the property management services of Benchmark Asset Services.