by Michele Newbern Gillis
Staff Writer
Being close to the legal community and government centers, the prestige of high rise office buildings and being centrally located are just some of the reasons why tenants are choosing downtown over suburban areas, according to many real estate agents.
“I think 75 percent of downtown tenants require easy access to the courts and City government,” said Bob Ascher, sales associate at Schultz Foster Addison Real Estate Inc. “The other 25 percent offer support services to the 75 percent. Take away the government and downtown is dead.”
“My tenant/buyers downtown are there because they like the synergy of being close to the banking institutions and legal entities and the professional image this portrays,” said Robert Selton of Colliers Dickinson. “My tenants/buyers that are government and nonprofit entities like the downtown area because it is easily accessible to their client base. Having City Hall and the Duval County Courthouse close by makes it a lot easier for companies to conduct their business and utilize the [City’s] planning department.”
And, as downtown revitalization moves forward, the Central Business District is becoming more and more attractive to tenants and business owners.
“Downtown is the heartbeat of Jacksonville,” said Walter Dickinson, president of Colliers Dickinson. “It is prestigious to be downtown in the high rise buildings — it is classy. Downtown is geographically close to all of Northeast Florida and it is easy to reach any part of Northeast Florida from here and vice versa.”
And, said Dickinson, getting around downtown is relatively simple.
“You can easily walk to major banks, law offices, the Chamber of Commerce and government [offices]. There are more major company offices located in the downtown area who are involved in the Jacksonville economy than anywhere else.”
Other reasons for tenants/buyers to move downtown include incentives for moving into the Central Business District, close proximity to banking institutions, comparable rental rates and being centrally located to Northeast Florida.
“The idea of being centrally located in Jacksonville is very appealing to individuals and companies,” said Mark Pollack, a commercial real estate specialist with Schultz Foster Addison Real Estate, Inc. “A downtown location gives us the ability to walk to retailers, restaurants and entertainment as well as giving businesses easy access to all parts of town. Secondly, attractively priced lease rates coupled with the current development and City incentives makes downtown economically attractive.”
“Downtown is a central location for employment,” said John Lining of Colliers Dickinson. “It is closer to the pulse of the city.”
Having the largest inventory of space to lease or sell, also provides an attractive downtown lure, according to real estate agents.
Currently, downtown has 67 buildings to lease, an inventory of 7,608,865 square feet, a vacancy rate of 13.85 percent and a lease rate of $16.13 per square foot, which is very competitive compared to other parts of town.
The beach, for instance, has 28 buildings to lease, an inventory of 642,624 square feet, a vacancy rate of 24.10 percent and a lease rate of $19.70. Mandarin, one of the more congested areas, has only 16 buildings to lease, an inventory of 349,604 square feet, a vacancy rate of .93 percent and a rental rate of $13.
The Southside and Butler/Baymeadows area has the most buildings, but still less inventory than downtown.
Southside has 127 buildings, an inventory of 5,306,403 square feet, a vacancy rate of 24.42 percent and a lease rate of $15.14. Butler/Baymeadows has 107 buildings, an inventory of 6,008,495 square feet, a vacancy rate of 15.75 percent and a rental rate of $15.13.