Finally… New Office Buildings

At the beginning of the year, I predicted we would finally see some new office buildings. I was right! Availity will be leasing 105,000 square feet in Town Center One located on Gate Parkway. The building will be 160,000 square feet and still has additional space left to lease, but the leasing brokers tell us it will be full by the time the building is completed. “They have a ton of activity” according to Ross Carrier with Avison Young. They will also be constructing a second 160,000 square foot building and have more space for another building.

This is not the only development in the area. Hines is also marketing for a 100,000 square foot building. The availability in that area for nice Class “A” space is very slim, so there is a lot of demand. These buildings will be in the $26.50-$27.50 full service per square foot range. This is the highest we’ve seen in Jax! This is going to cause the rates in existing buildings to increase.

Jacksonville will still be a low cost alternative compared to other markets we compete with for business. Jacksonville is just finally catching up!