Jacksonville Office Market Report

Dispersed deliveries aid recovery. Last year, net absorption did an about-face from 2023 and is set to improve this year, helping asking rent growth to resume as vacancy falls. Although vacancy in 2024 had the benefit of very low supply pressure, this year’s step-up in construction will not be large. The new supply in 2025 comprises many smaller buildings, located south from the CBD. This distribution should allow suburban vacancy to continue tightening after the rate fell nearly 100 basis points last year. As for the CBD, while demand weakened last year in Downtown Northbank, much of that was due to net relinquishments in the first quarter. If net absorption carries forward recent momentum, vacancy here is likely to stay below the metro’s average; nevertheless, downtown’s recovery is taking longer than other parts of the market.