It’s not just luxury apartments, condos, and townhomes that you see popping everywhere around town. There has also been a surge in office space construction and high-end or Class A office space in Jacksonville. Statewide, there is now almost 95 million square feet of office space. When you count the office space currently under construction, the number swells to 97 million square feet. Much of this growth has occurred and continues to occur in the Jacksonville area. The total performance and size of Florida’s office market has now surpassed pre-Recession levels.
With Jacksonville’s vacancy rate in the office market at around 12.6 percent, it’s slightly higher than the statewide average but still lower than the national average. Notably, the Class A market in Jacksonville has the lowest vacancy rate (11.8%) out of three classifications.
This vacancy rate is also a healthy indicator in the area’s ability to continue to attract businesses that bring good-paying jobs with them. The availability of Class A office units is an essential ingredient for companies sizing up locations for their regional headquarters and other corporate offices. A similar story is unfolding in the housing market where Jacksonville is experiencing a health surge of inventory that isn’t causing any immediate drop in prices. The demand has been there to meet the supply, even as the appreciation rate over the last couple years has been well above the historical average. All in all, it adds up to a pretty rosy story in which times are good but seemingly not out of balance.