Jacksonville Retail Market Treading Water

JACKSONVILLE-Even though the retail vacancy rate for Jacksonville remained steady in the first quarter of 2010, showing little change from fourth quarter 2009, the first quarter closed with a positive absorption of 93,832 square feet, according to first quarter 2010 MarketView report for Jacksonville put out by CB Richard Ellis. The positive absorption, which is attributable to three large leases, is mainly a result of landlords lowering their asking rents, according to this report.

The three largest retail leases in first quarter 2010 in the Jacksonville area were a 45,000-square-foot lease signed by Sports Academy at Bolton Plaza, a 40,000-square-foot lease at Tuesday Morning Plaza signed by the Abundant Life Church and the 29,000-square foot lease inked by Bailey’s Powerhouse Gym in Monument Landing.

Although there weren’t any restaurants among the big leases in the first quarter, Jacksonville restaurant chains Firehouse Subs and The Loop Plaza Grill made Fastcasual.com’s Top 100 Movers & Shakers list for 2009. In an unrelated report by the restaurant consulting firm Technomic, Inc., Firehouse Subs was ranked the ninth fastest growing chain in the nation, according to the Jacksonville MarketView report.

There are two retail buildings under construction in the Jacksonville market for a total of 738,000 square feet. Although a lot of space has been preleased at these centers, it appears as if absorption is slowing as retailers become more concerned about the poor economy, says the Jacksonville report.

In the state of Florida, the unemployment rate was 12.2% in February, the highest in almost 35 years and the Jacksonville area was just below the Florida average.

The average asking direct lease rate in Jacksonville at the end of the fourth quarter 2009 was $15.95 per square foot. The current asking rent of $15.62 per square foot, is a decrease of $.33 per square foot from the fourth quarter.