Jacksonville Record & Observer 3/12/20

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March 12-18, 2020

Former Winn-Dixie executive leaves The Fresh Market PAGE 10

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JACKSONVILLE

Record & Observer City Council clears job incentives for Project Graph

COMMERCIAL DEVELOPMENT OUTLOOK JACKSONVILLE

FACING UNCERTAINTY Record & Observer JACKSONVILLE

Record & Observer

The unidentified medical software company says it will create 115 full-time jobs in Jacksonville.

What experts are saying

BY MIKE MENDENHALL STAFF WRITER

INDUSTRIAL MARKET

JACKSONVILLE

“While construction starts are expected to subside, strong market fundamentals will continue to attract capital to the area.” JLL

City Council approved taxpayer-backed incentives March 10 for code-named Project Graph to expand the company’s existing Jacksonville medical software design operation and create a regional headquarters. Council voted 17-0 to approve Resolution 2020-0138 that includes incentives from the state’s Qualified Target Industry Tax Refund program to create 115 full-time jobs. The company asks for $690,000 in incentives from the state and city. A city Office of Economic Development project summary says the company will receive a $6,000 refund per job. The state will pay 80%, or $552,000, of the total incentive and the city will offer 20%, or $138,000. It would create the jobs by yearend 2022 at an average annual wage of $71,663, generating a payroll of $8.2 million before benefits. The company plans to invest $2.15 million in real estate improvements, information technology equipment, furniture and fixtures. No site was identified. A city legislative fact sheet says the company is considering other cities for its proposed expansion and the incentives are a material factor in its decision.

Record & Observer MULTIFAMILY MARKET

“Factors such as strong population growth, employment growth and rising median income levels continue to drive demand.” Colliers International OFFICE MARKET “The tight labor market showed that the area remained a job generator which will have a positive impact on office demand.” Cushman & Wakefield DOWNTOWN “Jacksonville’s urban core continues to evolve with several transformational projects proposed for future development.” Avison Young

Photo by Monty Zickuhr

Chance Partners is developing the 486-unit San Marco Crossing community on 8.89 acres on two blocks bounded by Olevia Street, Mitchell Avenue, Philips Highway and Perry Place. The first phase of the $69.2 million project is set to be completed by year-end 2020.

Elections, the economic cycle and the virus raise questions. BY KAREN BRUNE MATHIS EDITOR

J

acksonville’s record-low unemployment rate and ongoing job and population growth continue to engender confidence among area commercial real estate brokers. “Business development and an already sound economic environment are anticipated to strengthen,” said CBRE. National conditions raise questions. “Forecasts for 2020 anticipate moderate but steady growth, with focus on the 2020 Presidential election,” said NAI Hallmark. The area’s major commercial brokerage firms reported fourth-quarter market conditions that indicate confidence in Jacksonville’s long-term growth but also the expectation of some slowing in 2020. “Most likely, an election year coupled with a cooling economic cycle is likely to have some impact on leasing and invest-

ment activity though the precise extent is undetermined,” reported JLL. Still, the economic cycle is historic. “After closing with a record 126 straight months of economic expansion, the 2010s marked the first time in modern American history an entire decade was void of recession,” wrote NAI Hallmark Managing Partners Christian Harden and Keith Goldfaden. The reports preceded the coronavirus outbreak, Harden which has been roiling the stock market. “It’s too early to determine the impact on demand,” Harden said March 10. “While we haven’t seen any ‘irrational exuberance’ in decision-making over the past year, a public health crisis is sure to slow down growth.”