That’s the question staff writer Michele Newbern Gillis asked several commerical realtors.
“I don’t think current rents will justify a new Class A building right now so the question is moot. There’s probably pretty good demand however.”
— Jim Citrano, CB Richard Ellis
“I would say yes. Not only would it look great for our skyline, it would also be very useful. I think the vacancy rate in downtown is somewhere around single digits.”
— Bob Hillis, Easton Sanderson and Co.
“The slowdown in downtown interest and growth since Sept. 11 does not justify a new Class A building in the near future. With Aetna’s U.S. Healthcare consolidation, which leaves an additional 240,000 square feet available on the Southbank, and CSX vacating 150,000 square feet on the Northbank, it would seem to reason that the first and second quarters of the new year will have a stagnant net absorption rate.”
— Fran Pepis, Colliers Dickinson
“Need is [or should be] based on demand. Unfortunately, the demand for downtown office space has not kept pace with the supply. Presently, it is more financially feasible to buy and renovate an older building versus constructing a new facility. I personally would like to see more office towers in downtown, but the market does not support it.”
— Lou Nutter, CB Richard Ellis
“I do not think we need to have another Class A office building in downtown Jacksonville at the present time. The occupancy rate of the present office buildings does not justify an additional building as yet. However, the development of downtown housing and additional retail space in the downtown area may soon generate sufficient demand for additional office space.”
— Don Davis, Gate Petroleum Company
“At this point in time, demand for space is such that we really have adequate supply but the construction cycle to build a new Class A high rise is three to four years. Speculatively, there may be reason to begin planning for a new Class A building but rental rates are still below what developers feel is necessary, for example $25 a square foot and above.”
— Victor Narusas, Colliers Dickinson
“I’m totally behind downtown development. If there is a need and they can get the rates to justify it, then sure let them build it. I’d like to see our downtown thriving and grow. I guess there hasn’t been one build down there in 12 or 13 years. If they can make it work, I’d love to see it happen, not to the detriment of the suburbs, since we have suburban buildings. But yes, I’d like to see downtown grow.”
— Chuck Diebel, Koger Equity, Inc.