Days before Citizens Property Insurance Corp. rebuffed an attempt by Mayor Donna Deegan and others not to uproot from its offices in Downtown Jacksonville, Deegan expressed confidence that Downtown was poised for growth regardless of the state insurer’s decision.
On March 13, Deegan issued a statement making it clear she remains bullish on the future of Downtown.
"We respect the decision and are glad these jobs will remain in Jacksonville. We are constantly working with our business community partners to attract more companies to Jacksonville, including downtown," the statement read.
"There are several significant projects in the pipeline for consideration that could bring capital investment and employees to downtown Jacksonville.
The explosive growth happening downtown gives us a great story to tell with these companies. We hope to have more to share with the public soon."
On March 12, the board of the state insurer gave final approval to move its offices to the former Florida Coastal School of Law building at 8787 Baypine Road in Baymeadows from its space in the 30-story high-rise at 301 W. Bay St.
The 10-year lease is with Chicago-based Boyd Watterson Asset Management through Jacksonville IV FGF LLC. It is for about 214,998 square feet of office space and 5,000 square feet of warehouse space.
The lease rate is $24.94 per square foot per year inclusive of tenant improvements, utilities, janitorial services and on-site security.
There are two five-year renewal options.
Florida Coastal School of Law closed in 2021. Boyd Watterson bought the Baymeadows building for $13.5 million in 2022.
Citizens chose the Baypine Road site on March 7 in a competitive bidding process that drew six other proposals, including for the Bay Street building.
With the board’s approval, the insurer will make the move in January 2026.
Efforts to keep Citizens Downtown
After the March 7 announcement, Deegan said her administration would try to convince the board not to leave Downtown. She said that in response to security concerns raised by Citizens, including that homeless people were confronting its staff members on their way to and from the building, she and Sheriff T.K. Waters had agreed to establish a Jacksonville Sheriff’s Office stop station in the building.
The Jacksonville Civic Council and JAX Chamber also urged Citizens not to move.
During a March 11 appearance on the WJCT News talk show “First Coast Connect,” Deegan said she would be pleased that Citizens would remain in Jacksonville in whichever location it chose.
In any case, she said Downtown was in a position to flourish thanks to several public and private developments underway from the Sports and Entertainment District through LaVilla and Brooklyn.
“We have people, frankly, every single day who are talking to us about coming Downtown,” she said.
“So there may be some more things to say about that soon, but I would simply say that in a few years, given what we’re doing down here, it’s going to be tough to get down here without paying a whole lot more money than you’re paying now.”
Citizens did not respond to an emailed request from the Daily Record about how many people work in its Downtown offices. When the company signed a 10-year, $41.7 million lease for space at 301 W. Bay St. in 2015, it was reported that Citizens was consolidating offices and moving 1,038 jobs into the building.
Maintaining the commuter workforce is an essential element of the long-standing strategy to revitalize Downtown Jacksonville. In the cyclical plan, workers and residents are needed to attract and retain restaurants and retail establishments, which in turn make Downtown more attractive to employers and residents.
Downtown vacancy at 28%
Downtown Vision Inc., a nonprofit support organization for the central business district, reported that Downtown office vacancy was at 28% in the last three months of 2024. That was the highest rate in at least 10 years, and higher than the 21.9% rate in the suburbs.
Analysts say downtown office rates have generally risen in cities across the nation due primarily to lingering remote-work policies adopted during the pandemic.
Deegan is a supporter of Downtown redevelopment, saying a vibrant core is necessary for maintaining growth and a sense of community throughout Northeast Florida. A go-to line in her remarks about Downtown is, “You can’t be a suburb of nowhere.”
Since taking office in mid-2023, she has prioritized progress on public projects Downtown. During her term, projects that have been completed include Lift Ev’ry Voice and Sing Park, the Emerald Trail Model Mile and the restored Friendship Fountain.
Private projects that have come online include the $73 million adaptive reuse of the Union Terminal Warehouse on East Union Street into a mixed-use apartment building, the $96.9 million Artea transit-oriented apartment development on the Southbank and $26 million Lofts at Cathedral apartments in Cathedral Hill.
This story has been updated with a March 13 statement from Deegan.