Commercial Real Estate, Office Rates Review, Jacksonville, Fl.

The 3rd quarter office market vacancy reports will come out in the next few weeks and it'll be interesting once again, relative to the overall economy. But as we look back at the 2nd quarter reports, it's interesting to note some major transactions, along with the vacancy and rental rate indicators. Overview as follows:

• Vacancy Rates Trends lower. Since a high of 15.5% in the 3rd quarter, 2010, we have moved lowered nicely. We reported 15% vacancy in the 4th quarter, 2010, 14.5% in the 1st quarter, 2011 and 13.9% at the end of the 2nd quarter, 2011.

Major transactions for the Jacksonville office market year to date in 2011 are:

• Wells Fargo executing a new lease for 112,900rsf in the newly named Wells Fargo Plaza (formerly the Modis Building)
• The Jacksonville Economic Commission has approved incentives for EverBank to relocate up to 225,000sf to the downtown CBD.
• ICS Logistics has taken 18,200sf at the BBVA Compass Bank Building located at Gate Parkway and JTB.
• Outreach Financial Services took 41,421sf in Flagler Center

While the market has had several notable transactions, the rental rates remain flat to lower with Landlords offering free rent as additional incentives for creditworthy tenants.

The 3rd quarter market report should be compelling too, stay tuned for the overview.