Jacksonville Office Market Report

Demand returns in force. Net absorption exceeded 1 million square feet in 2021 for the first time on record and is on pace to surpass that threshold again this year. Over the past 12 months ending in March 2022, firms were most active leasing space in the Southside, due to the area's diverse collection of floor plans. Furthermore, leasing velocity recently surged in the Butler-Baymeadows submarket, with tenants taking more than 220,000 square feet off the market and slicing 230 basis points off the local vacancy rate in the first quarter alone. Notable signings in these locales included Treace Medical Concepts and Adecco, each committing to at least 80,000 square feet of space within the past two quarters. Jacksonville is well positioned to sustain this momentum as the metro's talented labor force, population growth and regionally discounted rents offer expanding firms an attractive alternative to Florida's more expensive markets.