Supply
Jacksonville's overall vacancy rate declined 90 basis points (bps) year-over-year (YOY) to 20.6% at the close of Q3, reflecting continued improvement in market fundamentals. Occupancy gains accelerated during Q3, as net absorption noticeably increased from the previous quarter to just over158,000 square feet (sf), pushing year-to-date (YTD) numbers to over 248,000 sf. This marked the sixth consecutive quarter of positive absorption as the Central Business District (CBD) recorded the most significant improvement, with vacancy declining 300 bps YOY to 23.6%, supported by more than 136,000 sf of positive absorption during the quarter. Performance among higher-quality assets continued to lead with Class A vacancy falling 140 bps quarter-over-quarter (QOQ) and 230 bps YOY to 21.8%. No office space was under construction and with only one proposed building totaling over 143,000 sf in the development pipeline, Jacksonville's office market remains well positioned to further reduce available space and support long-term stabilization
Demand
Activity in Q3 was concentrated in the Northbank corridor, where a handful of companies moved into One Shipyards Place, including the Jacksonville Jaguars and Foley & Lardner LLP. Together, the two tenants accounted for nearly129,000 sf of occupancy gains, while Baptist Health occupied 22,000-sf during the quarter. The concentration of tenant preference within the Northbank corridor continued toward modern, amenitized office space in Jacksonville's urban core. Demand remained active across both Class A and Class B properties as occupiers continued to evaluate a wider range of options amid elevated availability. Although YTD leasing activity totaling over 627,000 sf decreased 50.0% YOY, the decline was largely attributed to an exceptionally active first quarter in 2025. Excluding Q1 2025 transactions, leasing activity rose more than 25.0% ahead from the same period one year ago, suggesting underlying tenant demand remained healthier than headline leasing figures indicate.
Pricing
Jacksonville's average asking rent ended Q3 2026 at $22.73 per square foot (psf), slightly down 1.0% YOY. Over the past five years, average asking rents have increased 1.5% and fluctuated within a narrow range, moving between $22.28 psf and $22.96 psf. The CBD recorded an average asking rent of $24.12 psf, up 1.1% YOY. Among submarkets with at least 1.0 million square feet (msf) of inventory, Northbank commanded the highest rents in the market at $24.13 psf, up 1.7% YOY, while Class A rents averaged $24.69 psf.
