Jacksonville Office Market Report

Construction largely omits traditional office projects. Supply growth this year will be at its lowest level since 2016, aiding property metrics amid softer tenant demand from most sectors. In each submarket, additions to local stock are slated to fall below 90,000 square feet this year. This mild construction appears to be placed thoughtfully as well, with the two areas expected to receive the most completions — St. Johns County and Orange Park-Clay County — each featuring Class A vacancy rates less than half of the metro total. Ongoing development activity in these submarkets consists of medical offices, with most already accounted for as of May. The recently-built Ascension St. Vincent’s and Baptist Health hospitals have spurred the need for nearby space among outpatient and specialty health service providers. Growth in the age 65-plus population, a cohort expected to rise by 21 percent over the next five years, will support localized demand for this type of space moving forward.