The pandemic helped create a surge in demand for certain types of commercial real estate, namely multifamily and industrial, across the U.S.
Jacksonville has seen these trends, as both of those property types have attracted billions of dollars from investors in the last two years.
But with the rise in work from home and other remote work setups, the future has been a bit less certain for offices.
In a recent report, Mike Salik, director of office and industrial services at Franklin Street, says Jacksonville’s office market in particular is ripe for deal making. Here’s why:
“Even with inflation increases, office space is still quite affordable and compared to other Florida metros. Jacksonville has the lowest average rental rate of all of them at under $23 per square foot for a full-service lease,” Salik said.
In addition to rental rates, Jacksonville’s in-migration and business growth means more opportunities for organizations looking to expand or enter a Florida market.
Salik said there’s no doubt office space needs are changing, but that actually creates opportunities for investors to get into the sector in the early stages of what comes next.
“Going forward, we are going to see increased utilization rates per person,” Salik said. “Historically, it has been between 200 to 250 square feet ‘all in’ per person. But because of the transition we are in, I think you will see a higher number of employees ‘attached’ to smaller spaces.”