JacksonvilleBusinessNews.com | Commercial Real Estate | Updated September 16, 2026
Quick Answer
Class A office space in Downtown Jacksonville’s Northbank asks $24.72 per square foot full-service, essentially level with Deerwood Park at $24.27, according to Cushman & Wakefield’s Q2 2026 MarketBeat. The Beaches submarket is the market’s price leader at $33.16, while Baymeadows ($21.68 Class A) and Southpoint ($24.95 Class A) round out the Southside cluster. Market-wide vacancy fell to 20.5%, its lowest level in three years, with zero square feet under construction.
How Is the Jacksonville Office Market Organized?
Jacksonville’s 21.5 million square feet of tracked office inventory splits between a 7.3-million-square-foot central business district (Northbank and Southbank) and a 14.2-million-square-foot suburban market dominated by the Southside cluster of Deerwood, Southpoint and Baymeadows. San Marco, though widely used as a neighborhood name, is folded into the Southbank and Southside statistical submarkets by most brokerages.
| Submarket | Location | Inventory (SF) | Character |
|---|---|---|---|
| Northbank | Downtown north of the St. Johns River; Laura, Bay, Forsyth Streets | 5,261,287 | Trophy and Class A towers; banks, law firms, government; highest vacancy |
| Southbank | Downtown south bank; Riverplace, Prudential Drive, San Marco edge | 2,018,162 | Riverfront Class A; Baptist Health, financial services |
| Deerwood | Deerwood Park, Gate Parkway, Touchton Road (Butler/9A) | 4,086,041 | Largest suburban submarket; corporate campuses, Florida Blue, insurance and fintech |
| Southpoint | Salisbury Road, Belfort Road, Butler Blvd west of I-95 | 3,160,007 | Mid-rise Class A/B; medical and back-office |
| Baymeadows | Baymeadows Road, Flagler Center, I-95 south | 3,064,063 | Value Class A/B; call centers, healthcare |
| Mandarin | San Jose Blvd, Old St. Augustine Road | 1,317,459 | Small-tenant professional office |
| Beaches | Jacksonville Beach, Ponte Vedra Beach | 658,740 | Boutique, highest rents |
| Arlington, Southside, Westside, Northside | Scattered older inventory | 1,150,436 combined | Small buildings, high variance |
| St. Johns County, Clay County | Suburban counties tracked with Jacksonville | 743,311 combined | Growing; limited data |
What is the average price per square foot for Class A office space in Downtown Jacksonville vs. Deerwood Park?
Northbank Class A asks $24.72 per square foot full-service against $24.27 in Deerwood, a gap of only 45 cents, but Northbank vacancy is 26.4% versus 14.6% in Deerwood, so downtown landlords are offering deeper concessions to hit those numbers. Southbank Class A asks $24.05 with 25.6% vacancy.
| Submarket | Class A Asking Rent (FS, $/SF/yr) | All-Class Asking Rent | Overall Vacancy | YTD Net Absorption (SF) | YTD Leasing (SF) |
|---|---|---|---|---|---|
| Beaches | $33.16 | $33.18 | 8.2% | 1,135 | 0 |
| Mandarin | $25.65 | $22.51 | 28.3% | -1,393 | 12,080 |
| Southpoint | $24.95 | $21.48 | 20.1% | 24,503 | 31,842 |
| Northbank (Downtown) | $24.72 | $24.15 | 26.4% | 16,071 | 49,576 |
| Deerwood | $24.27 | $24.09 | 14.6% | 92,655 | 93,949 |
| Southbank (Downtown) | $24.05 | $24.04 | 25.6% | 1,298 | 27,289 |
| Baymeadows | $21.68 | $20.63 | 20.7% | 32,268 | 62,048 |
| St. Johns County | n/a | $26.25 | 11.5% | -1,282 | 0 |
| Southside (misc.) | n/a | $18.57 | 1.1% | 1,142 | 1,142 |
| Arlington | n/a | $17.96 | 46.7% | -1,972 | 0 |
| CBD total | $24.53 | $24.13 | 26.2% | 17,369 | 76,865 |
| Non-CBD total | $24.92 | $22.11 | 17.6% | 142,134 | 218,211 |
| Jacksonville total | $24.67 | $22.96 | 20.5% | 159,503 | 295,076 |
Source: Cushman & Wakefield, Jacksonville Office MarketBeat Q2 2026. Rents are full-service asking rates.
Deerwood generated 92,655 square feet of positive absorption in the first half of 2026, more than the entire CBD combined, and its vacancy dropped 570 basis points year-over-year. Southbank’s vacancy fell 750 basis points, the steepest decline of any submarket, from a very high base.
What are Class A vs. Class B office rents in Jacksonville?
Class A space averages $24.67 per square foot full-service market-wide with 23.2% vacancy; Class B averages $20.68 with 17.5% vacancy. The $4 spread is narrow by Florida standards and reflects Jacksonville’s relatively small trophy inventory.
| Class | Inventory (SF) | Vacancy | Direct Asking Rent | Overall Asking Rent | YTD Absorption (SF) |
|---|---|---|---|---|---|
| Class A | 11,362,915 | 23.2% | $24.66 | $24.67 | 115,820 |
| Class B | 10,096,591 | 17.5% | $20.49 | $20.68 | 43,683 |
| Total | 21,459,506 | 20.5% | $23.02 | $22.96 | 159,503 |
Class B rents grew 1.6% year-over-year, faster than Class A, as small and mid-size tenants absorbed value space in Baymeadows and Southpoint. Market-wide rents have risen only 2.3% over five years, well below inflation, which is the clearest signal that Jacksonville remains a tenant’s market.
What are the key terms for commercial leases in Northeast Florida?
Jacksonville office leases are quoted full-service (rent includes taxes, insurance, utilities and janitorial over a base year), typically run three to seven years, carry annual escalations of 3%, and in the current market commonly include tenant improvement allowances of $30 to $60 per square foot on five-year-plus Class A deals plus several months of free rent.
| Term | Typical Jacksonville Practice (2026) |
|---|---|
| Rent basis | Full-service gross with base-year expense stop; NNN common in medical and flex |
| Lease length | 3–5 years for under 10,000 SF; 5–10 years for larger Class A tenants |
| Annual escalation | 3% fixed is standard; some landlords hold at 2.5% |
| Tenant improvement allowance | $30–$60/SF on new 5-year+ Class A leases; $10–$25/SF on renewals; lower in Class B |
| Free rent | 3–8 months on 5-year+ deals in high-vacancy buildings (Northbank, Southbank, Mandarin) |
| Operating expense pass-through | Increases over base year; watch for gross-up clauses at 95% occupancy |
| Parking | Downtown: $75–$150 per space per month in garages; suburban: free surface parking, typically 4–5 per 1,000 SF |
| Sales tax on rent | Repealed statewide effective October 1, 2025; no sales tax on commercial lease payments |
| Security deposit | 1–2 months; personal guaranty common for tenants under 5 years in business |
| Renewal option | Frequently at “fair market rent” with a 95% floor; negotiate a cap |
| Sublease/assignment | Landlord consent “not unreasonably withheld” is negotiable and worth securing |
The Florida commercial rent sales tax repeal removed a roughly 2% state levy (plus any county surtax) from every lease payment. On a 10,000-square-foot Deerwood lease at $24, that is about $4,800 a year back to the tenant.
Worked example: A 10,000-square-foot Class A lease in Deerwood at $24.27 full-service, 5-year term, 3% escalations, 4 months free, $40/SF TI:
| Item | Calculation | Amount |
|---|---|---|
| Year 1 base rent | 10,000 × $24.27 | $242,700 |
| Free rent credit | 4 months | ($80,900) |
| 5-year gross rent (3% escalations) | Sum of years 1–5 | $1,288,500 |
| TI allowance (landlord-funded) | 10,000 × $40 | $400,000 |
| Net effective rent | (Gross rent − free rent − TI) ÷ 5 yrs ÷ 10,000 SF | ~$16.15/SF |
Asking rent and effective rent diverge by a third in the current market, which is why headline rate comparisons between submarkets understate downtown’s real discount.
Where is Jacksonville office demand actually going?
Suburban submarkets captured 73.9% of year-to-date leasing in 2026, and Deerwood Park, Baymeadows and Southpoint alone accounted for 63.7% of deal volume. Downtown’s second quarter improved sharply, with CBD leasing up 271.7% quarter-over-quarter on the strength of Foley & Lardner’s 25,064-square-foot deal at One Shipyards Place and PwC’s 13,329-square-foot renewal at 76 S. Laura Street.
- Deerwood: 4600 Touchton Road landed a 29,000-square-foot confidential tenant, the quarter’s largest new deal; 10550 Deerwood Park Boulevard sold for $19.03 million, or $169.63 per square foot.
- Northbank: 1.37 million square feet of direct vacancy, most of it in older Class A towers; the submarket’s fate is tied to the Downtown Investment Authority’s conversion and demolition incentives.
- Beaches: effectively full at 8.2% vacancy, with rents up 20% in five years and no relief coming.
- No construction: zero square feet under way anywhere in the market, so vacancy can only fall through absorption or conversion.
How does Jacksonville compare to other Florida office markets?
Jacksonville’s $22.96 average asking rent is the lowest of Florida’s major metros and roughly half of Miami’s; even the Beaches’ $33 premium sits below Tampa’s Westshore Class A average. Its 20.5% vacancy is mid-pack, better than Orlando and Tampa’s downtown cores but far above the sub-6% rates in Naples and Fort Myers.
| Market | Avg. Asking Rent (FS) | Overall Vacancy | Under Construction |
|---|---|---|---|
| Jacksonville | $22.96 | 20.5% | 0 SF |
| Fort Myers/Naples (SWFL) | $31.03 | 4.6% | 88,617 SF |
| Collier County (Naples) | $34.83 | 5.7% | 0 SF |
| Tampa Bay* | ~$32–34 | ~19–21% | Limited |
| Orlando* | ~$27–29 | ~16–18% | Limited |
| Miami* | ~$55–60 | ~14–16% | Active |
Peer-market figures are approximate ranges from recent brokerage reports and should be confirmed against the current quarter.
Brian’s Take
The single most useful number in this report is Deerwood’s 14.6% vacancy against Northbank’s 26.4% at nearly identical asking rents. That is not a pricing anomaly; it is the market telling you downtown landlords are holding face rent and giving it back in free months and TI. A tenant who wants a downtown address can get a Class A floor plate in a Northbank tower at an effective rate that Deerwood will not match, provided they can live with the parking bill and a building that may be half empty.
The bigger story is supply. Jacksonville has not delivered meaningful speculative office in years and has nothing under construction. With rents up 2.3% in five years, no developer can make a new building pencil at $25 full-service, so the only supply-side relief for downtown is subtraction: the DIA-backed conversions and demolitions that take obsolete towers out of the count. Watch the Beaches and Deerwood for the next rent increases; watch Northbank for the next great deal. And for anyone signing a five-year lease this year, negotiate the renewal option cap now, because the tenant leverage that produces $16 effective rents will not last the full term.
Frequently Asked Questions
What does “full-service” mean in a Jacksonville office lease?
The quoted rent includes property taxes, insurance, common-area maintenance, utilities and janitorial for a base year; the tenant pays its share of increases over that base in later years.
Which Jacksonville office submarket has the lowest vacancy?
Among major submarkets, the Beaches at 8.2%, followed by St. Johns County at 11.5% and Deerwood at 14.6%. The small Southside and Clay County inventories both show 1.1%.
How much is Class A office rent in Jacksonville Beach or Ponte Vedra?
The Beaches submarket averages $33.16 per square foot full-service for Class A, about 35% above Downtown and Deerwood, and has grown 20% over five years.
Is any new office space being built in Jacksonville?
No. Cushman & Wakefield reports zero square feet under construction market-wide as of Q2 2026.
What did Jacksonville office buildings sell for in 2026?
The benchmark Q2 trade was 10550 Deerwood Park Boulevard at $169.63 per square foot ($19.03 million for 112,200 square feet), part of a three-building Deerwood portfolio sale.
Sources and Further Reading
- Cushman & Wakefield, Jacksonville Office MarketBeat Q2 2026 — https://assets.cushmanwakefield.com/-/media/cw/marketbeat-pdfs/2026/q2/us-reports/office/jacksonville_americas_marketbeat_office_q22026.pdf
- Cushman & Wakefield, Jacksonville MarketBeat index (office, industrial, retail, multifamily) — https://www.cushmanwakefield.com/en/united-states/insights/us-marketbeats/jacksonville-marketbeats
- Trinity Commercial Group, “Jacksonville Commercial Real Estate Market Outlook: Key Trends for 2026” (CBRE Q2 2026 vacancy 23.7%) — https://trinitycre.com/jacksonville-commercial-real-estate-market-outlook-key-trends-for-2026-2/
- Avison Young, Jacksonville Office Market Reports — https://www.avisonyoung.us/web/jacksonville/office-market-report
- CommercialCafe / Yardi Research, Jacksonville Office Rent Price & Sales Report — https://www.commercialcafe.com/office-market-trends/us/fl/jacksonville/
- Cushman & Wakefield, Fort Myers/Naples Office MarketBeat Q1 2026 (peer comparison) — https://assets.cushmanwakefield.com/-/media/cw/marketbeat-pdfs/2026/q1/us-reports/office/fort-myers_naples_americas_alliance_marketbeat_office_q12026.pdf
- Florida Department of Revenue, Sales Tax on Commercial Rentals (repeal effective Oct. 1, 2025) — https://floridarevenue.com
- JacksonvilleBusinessNews.com, Jacksonville Commercial Rezoning and Land Use: 2026 Guide (companion article)
Reporting by Brian French. Submarket rents are Cushman & Wakefield asking rates as of June 30, 2026; effective rents after concessions are typically 20% to 35% lower. Lease-term ranges reflect prevailing Jacksonville practice and vary by building and tenant credit.
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