FIRST COAST COMMUTER RAIL TOD STUDY | EXISTING CONDITIONS
FIRST COAST COMMUTER RAIL TOD STUDY | EXISTING CONDITIONS
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OFFICE
Background: Regional Employment and Economic Conditions Jacksonville’s economy is the main driver of job demand in the region, with finance and healthcare driving most office-using jobs. St. Johns’ economy is mostly driven by non-office-using industries like retail and accommodations.
Since 2010, almost 1,700,000 of office square footage have been delivered in Duval County and almost 770,000 SF have been delivered in St. Johns County. Deliveries have varied year to year but remained strong during the pandemic, supported larger developments like the PGA Tour Global Headquarter in 2021 in St. Johns County and the Jacksonville University Health and Science Building in 2020 in Jacksonville.
Since 2010, net absorption has averaged over 370,000 SF per year in Duval County and almost 90K SF per year in St. Johns County. Net absorption in both counties has mirrored deliveries. In Duval County, the average vacancy rate has been steadily declining since 2010 but rose after deliveries increased in 2018, whereas vacancy in St. Johns County has continued to decline since 2010. The average rent in Duval County has risen slowly since 2010, while the average rent in St. Johns County increased more quickly following recent deliveries of new residential units and low vacancy. Typologies As a major city, Jacksonville’s economy drives demand for jobs in the region. The largest industries (by number of employees) are healthcare, retail, finance and insurance, and hospitality. Downtown Jacksonville’s recent deliveries have been a mix of Class A and Class B buildings. The largest recent delivery was Springs at Flagler Center Apartments, a Class B building in the Butler/ Baymeadows area, followed by a medical office space, the Jacksonville University Health and Science Building. The pipeline
largely consists of built-to-suit, Class A office, like the FIS Headquarters representing the finance industry’s growing presence, the largest project recently completed in Downtown Brooklyn neighborhood for the FIS Headquarters (Fidelity National Information Services Inc at 200,000 RBA. While there is a concentration of office inventory in Downtown Jacksonville, there are many office parks and office buildings in Duval’s suburban neighborhoods, particularly to the south along I-95. Suburban office development has been mainly driven by larger build to suit office buildings in suburban Duval and St Johns. The Greater St. Augustine area is made up of smaller offices, mostly medical, with tourism driving most of the jobs in the area. Pipeline projects are similar to existing inventory, all class B and mostly medical. Takeaways Increased job demand is driving office demand in Duval County, while office space in St. Johns is driven mostly by increased population and demand for services.
Office Deliveries (2010-2021)
100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000
Large deliveries included the build-to-suit PGA Tour Global HQ and Fort Wade Rd Office Park – Building II
Deliveries included 2 large Class A offices and many smaller Class B (medical) offices
(200,000) (100,000)
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Duval County Change in Inventory
St. Johns County Change in Inventory
Jacksonville University Health Sciences Complex 5491 N University Blvd, Jacksonville Medical office built 2020 287,496 SF (RBA) 3 Stories (Mid-Rise) Rent/SF/Yr: $18.14 - $22.17 Surface parking 1201 Kings Ave (JTA) Jacksonville Proposed office (expected 2023) 1,000,000 SF (RBA) 1 Story (Low-Rise) Rent/SF/Yr: Not disclosed Park Place at Nocatee 100 Palmetto Park Pl, Ponte Vedra Office built 2021 125,000 SF (RBA); 1 of 5 buildings in a 675,000 SF office park with build-to-suit opportunities 4 Stories (Mid-Rise) Rent/SF/Yr: $24.57 - $27.99 Surface parking
Office Average Vacancy Rate (2010- 2021)
Office Average Gross Rent per SF/Year (2010-2021)
10% 12% 14% 16%
$10 $15 $20 $25 $30 $35
JRTC
BAYMEADOWS
AVENUES WALK
0% 2% 4% 6% 8%
CR 210
PALENCIA
$0 $5
KING STREET SR 312
Pipeline projects Deliveries since 2010 FCCR corridor
Duval County Avg. Vacancy Rate St. Johns County Avg. Vacancy Rate
Duval County Avg. Rent St. Johns County Avg. Rent
Figure 3-41: OFFICE DELIVERIES, VACANCY & RENT
Figure 3-42: OFFICE DEVELOPMENT NEAR CORRIDOR
Source: CoStar
Source: CoStar, Dot size based on Rentable Building Area (RBA)
FCCR TOD
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