Why Jacksonville

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OFFICE Q4 2024 JACKSONVILLE

MARKET FUNDAMENTALS

ECONOMY Jacksonville’s unemployment rate was 3.4% at the end of Q4, indicating a 20 basis-point (bp) increase compared to one year ago. Even with this increase, unemployment remained below the national rate of 4.2%. Total nonfarm employment grew by 10,800 jobs or 1.4% year-over-year (YOY). SUPPLY Overall vacancy fell for the second consecutive quarter, closing Q4 down 30 bps quarter-over-quarter (QOQ) at 21.3%. This decrease was attributed to the occupancy of 52,500 square feet (sf) at 9000 Southside Blvd by Bank of America in the Southside Submarket. Jacksonville registered its first quarter of net occupancy gains in seven quarters, with Q4 ending at 88,100 sf bringing the year-to-date (YTD) total to -107,500 sf. Class A vacancy rose by 80 bps YOY, finishing Q4 at 22.6% while Class B fell by 50 bps YOY settling at 20.0%. Development starts remained disciplined in 2024, with just 143,000 sf currently under construction. As existing availabilities are filled, vacancy rates should continue to fall into 2025. DEMAND

21.3% Vacancy Rate -108K YTD Net Absorption, SF $22.71 Asking Rent, PSF (Overall, All Property Classes)

YOY Chg

Outlook

SPACE DEMAND / DELIVERIES

300

0

ECONOMIC INDICATORS

-300

-600 Thousands

YOY Chg

SELECT A TOPIC TO NAVIGATE SECTIONS

Related Insights Cushman & Wakefield Research reports analyze economic and commercial real estate activity including supply, demand and pricing trends at the statewide, market and submarket levels. 1 809K Jacksonville Employment 3.4% Jacksonville Unemployment Rate 4.2% United States Unemployment Rate Source:BLS Leasing activity during Q4 totaled 213,300 sf, which marked a 14.4% increase QOQ. This brought the annual total to 1.0 million square feet (msf), down 17.0% from the 2023 total. Class B space accounted for 54.7% of 2024 leasing activity while only making up 48.3% of inventory, illustrating the shift to lower quality space as companies seek cost savings. Suburban submarkets far outpaced CBD leasing activity once again, accounting for 84.3% of new deals signed in 2024. The Deerwood Park submarket led 2024 leasing activity with 329,800 sf, up 50.8% YOY. PRICING Overall asking rents remained stable, growing just 0.1% YOY and settling at $22.71 per square foot (psf) in Q4. The St. John’s County submarket recorded the largest increase in overall rates, finishing Q4 at $31.28 psf, an 11.0% increase YOY. Outlook

-900

2020

2021

Net Absorption, SF Construction Completions, SF

2022

2023

2024

OVERALL VACANCY & ASKING RENT

$23.00

$22.80

$22.60

$22.40

22%

$22.20

20%

$22.00

18%

2020

2021

16%

2022 Asking Rent, $ PSF

2023

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2024

14%

Vacancy Rate

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