(Above, the 28-story, Riverplace Tower, formerly known as Gulf Life Tower)
By Dan Allen, Vice Chairman, Multi-Housing Group, CB Richard Ellis, Jacksonville, FL
Geographically covering 834 square miles, the Jacksonville MSA is one of the largest metropolitan areas in Florida in terms of physical size and its population has grown at a healthy pace of more than 2% per year, or twice the national average.
With over 4% increases in employment in each of the last three years and including the addition of over 22,000 jobs this year, Jacksonville continues to see tremendous growth in the local work force.
As Florida’s most desirable location for insurance and financial firms, data processing and other back office operation, it is the leading financial and insurance center in the state.
Leading the charge are companies like BlueCross BlueShield of Florida, CSX, Citibank, Bank of America, Wachovia and Merrill Lynch & Co, which combine for over 26,000 jobs. Due to these high paying jobs, Jacksonville boasts the highest average household income in Florida at $65,411 and according to Forbes magazine, ranks third in the nation for quality of jobs.
In addition to its healthy economic and population growth, the metro’s multi-housing absorption rate has improved by the removal of 11.9% of the market’s units during 2004-2006, creating a demand deficit for rental units.
Reis, Inc. 2008 second quarter reports show an average vacancy of only 5.9% for the Jacksonville apartment market. Despite an increase in new construction since 2006, demand remains high, but the new units have impacted submarkets with aging properties.
The Greater Arlington submarket has been hit the hardest, but still maintains average rents of $664 and a vacancy rate of 7.8%. The MSA’s strongest market continues to be the Southeast submarket with $805 rents and an overall occupancy at 95%. The Beaches submarket still boasts the strongest rents at $1036, but has a slightly higher vacancy rate at 6%.
Not only has occupancy remained high, but rents continue to increase as well. According to RealFacts Inc., average rents in Jacksonville over the last year rose at a faster pace than the rest of the state and nation.
By Dan Allen, Vice Chairman, Multi-Housing Group, CB Richard Ellis, Jacksonville, FLJACKSONVILLE, FL--According to more than 660 real estate experts nationally, Jacksonville is a “market to watch.”
In a recent annual report produced by the Urban Land Institute and PricewaterhouseCoopers titled “Emerging Trends in Real Estate,” these 600-plus professionals cited the city’s path to international markets, major international airport and shipping port, educated workforce and vital downtown as reasons why Jacksonville has potential to continue peaking investors’ interest.
In a recent annual report produced by the Urban Land Institute and PricewaterhouseCoopers titled “Emerging Trends in Real Estate,” these 600-plus professionals cited the city’s path to international markets, major international airport and shipping port, educated workforce and vital downtown as reasons why Jacksonville has potential to continue peaking investors’ interest.
(Top left, the 43-story Bank of America Tower, 50 N. Laura St. Downtown)
Geographically covering 834 square miles, the Jacksonville MSA is one of the largest metropolitan areas in Florida in terms of physical size and its population has grown at a healthy pace of more than 2% per year, or twice the national average. Strong economic performance is poised to continue with a steady 7.4% growth over the next five years resulting in a gross increase of over 96,000 residents.
Considered “the gateway to where Florida begins,” Jacksonville remains the transportation hub between Florida and the northern United States, as well as international markets.
(Middle right photo, the 37-story Modis Building, originally known as the Independent Life Building, Downtown)
With the addition of two major Asian shipping lines by 2011, Jacksonville will become the second largest port on the eastern seaboard, behind only The Port of New York/New Jersey.
The Mitsui and Hanjin contracts will triple Jaxport’s cargo volume and add approximately 75,000 jobs over the next several years. In 2007, more than 8 million tons of cargo came through Jacksonville's ports, including more than 700,000 containers and 600,000 vehicles.
Part of the port's future de
pends on dredging to make room for larger ships.
Part of the port's future de
pends on dredging to make room for larger ships.A plan is under way to deepen a portion of the shipping channel to 45 or possibly 50 feet to coincide with the expansion of the Panama Canal within the next decade.
The economic impact of the deepwater system has the potential to generate between $3 billion and $6 billion in revenue as new terminals come online.
(Middle left photo, shrimp boats docked along St. Johns River)
With over 4% increases in employment in each of the last three years and including the addition of over 22,000 jobs this year, Jacksonville continues to see tremendous growth in the local work force.
As Florida’s most desirable location for insurance and financial firms, data processing and other back office operation, it is the leading financial and insurance center in the state.
Leading the charge are companies like BlueCross BlueShield of Florida, CSX, Citibank, Bank of America, Wachovia and Merrill Lynch & Co, which combine for over 26,000 jobs. Due to these high paying jobs, Jacksonville boasts the highest average household income in Florida at $65,411 and according to Forbes magazine, ranks third in the nation for quality of jobs.
In addition to its healthy economic and population growth, the metro’s multi-housing absorption rate has improved by the removal of 11.9% of the market’s units during 2004-2006, creating a demand deficit for rental units.Reis, Inc. 2008 second quarter reports show an average vacancy of only 5.9% for the Jacksonville apartment market. Despite an increase in new construction since 2006, demand remains high, but the new units have impacted submarkets with aging properties.
The Greater Arlington submarket has been hit the hardest, but still maintains average rents of $664 and a vacancy rate of 7.8%. The MSA’s strongest market continues to be the Southeast submarket with $805 rents and an overall occupancy at 95%. The Beaches submarket still boasts the strongest rents at $1036, but has a slightly higher vacancy rate at 6%.
Not only has occupancy remained high, but rents continue to increase as well. According to RealFacts Inc., average rents in Jacksonville over the last year rose at a faster pace than the rest of the state and nation. For the quarter ending in June 2008, the average rent in Duval County rose 2.9%, up to $845 from $821 in the second quarter of 2007.
(At left, rendering of new Duval County Courthouse complex.)
Over the next decade, Jacksonville will see growth in employment, population, income levels, and city infrastructure. Set in motion by significant increases in health, professional, leisure/hospitality, and wholesale trade job sectors, an estimated 92,000 new jobs will be incrementally added over the next five years.
This increase in job growth will nourish an already growing population. In order to support this expansion, the area will implement the “Better Jacksonville Plan,” is $2.25-billion comprehensive growth management program that will target economic development includi
ng new and improved public facilities, parks, amphitheaters, and arenas for the increasing population.
Jacksonville’s city government is one of the most efficient in Florida because it has been annexed to the county.
Over the next decade, Jacksonville will see growth in employment, population, income levels, and city infrastructure. Set in motion by significant increases in health, professional, leisure/hospitality, and wholesale trade job sectors, an estimated 92,000 new jobs will be incrementally added over the next five years.
This increase in job growth will nourish an already growing population. In order to support this expansion, the area will implement the “Better Jacksonville Plan,” is $2.25-billion comprehensive growth management program that will target economic development includi
ng new and improved public facilities, parks, amphitheaters, and arenas for the increasing population.Jacksonville’s city government is one of the most efficient in Florida because it has been annexed to the county.
This combined with Jacksonville’s low cost of living, business-friendly environment, state-of-the-art healthcare facilities, and above-average income levels, give an extremely positive outlook for the city going forward.
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