If you are a company leasing space in Jacksonville – thank your lucky stars!  If you are a Landlord/owner of an office building, I have bad news for you (but you probably already knew this).  Jacksonville has some of the lowest office rents in the country.  If your company is looking for a low cost solution to reduce costs, consider expanding in Jacksonville!

Jacksonville average rents are $17.22 per square foot per year on a full service basis.   The East Butler corridor (St. Johns Town Center area ) is the highest in our area at $23.17 sf and Arlington is the lowest at $12.80 sf.  Speaking of the St. Johns Town Center area, I’m predicting rents will start going up even more in the next year.  The vacancy rate is around 7% right now and Landlords are starting to hold firm on the rates and not offer as many concessions.  I think this will help our downtown vacancy, because there are very few Class “A” options available on the Southside of Jacksonville.  If companies want to locate in a Class “A” building, downtown is the best option.  Downtown rates average $18.67 sf and Landlords are offering tons of concessions including free parking.

There is tempered optimism across the country with leasing activity improving, especially in the markets driven by the high tech sector.  Lack of new office supply and scarcity of Class A space are driving up rental rates in the key gateway or Tier – 1 markets.  The following are the average rents from these metropolitan areas:

 

Metropolitan Area Average Rents
•    Atlanta $22.07
•  Austin $29.41
•  Baltimore $25.57
•  Boston $44.16
•  Chicago $33.17
•  Dallas $32.24
•  Denver $25.00
•  Houston $25.94
•  Los Angeles $41.14
•  Miami $40.92
•  New York $79.00
•  Philadelphia $34.48
•  Phoenix $24.42
•  San Diego $31.59
•  San   Francisco $36.79
•  San Jose $34.28
•  Seattle $29.70
•  Washington   DC $48.44

 

Please contact me if you would like additional information about any of these markets or Jacksonville office space.

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