Daily Record Financial News &
Tuesday, September 6, 2016
Vol. 103, No. 212 • One Section
35¢ www.jaxdailyrecord.com
Economy drives commercial market Office, industrial, retail and apartment demand ‘positive’ in 2nd quarter
Jacksonville’s commercial real estate market remained strong through the second quarter of 2016. With a stable area economy, job growth and the benefits of being part of Florida’s continued attraction for business, tourists and new residents, Jacksonville saw higher occupancy rates as well as higher rents. Retail, apartment and industrial properties experienced construction growth, while office development waits for stronger demand. An analysis of real estate mar-
ket reports found generally positive tones throughout the AprilJune quarter and for the first half of the year. Avison Young, CBRE, Colliers International North Florida, Cushman & Wakefield, Franklin Street Real Estate Services Inc. and JLL, also known as Jones Lang LaSalle, analyzed the time frame. Those reports covered the apartment, industrial, office and retail markets. While their market definitions, research methods and detailed findings differed, their summa-
ries, analyses and conclusions were largely in agreement.
Office market tightens, spec building at bay
Jacksonville’s office market benefited from a strengthening economy as job creation continued, unemployment declined and companies relocated both into
and within the area. However, new speculative construction remained constrained, although there are some spec buildings in the pipeline. Vacancy rates dropped, averaging 9.4 percent to 15.8 percent, while average asking lease rates rose to between $18 and a little higher than $19 a square foot. Downtown and suburban vacancy rates closed the gap in several of the reports. For example, Cushman & Wakefield found the overall metro vacancy rate was 15.4 percent, its lowest since the Great
Brewing on Bay Street
Hulsey retains seat after recount
Intuition Ale tap room opens today
From Staff
Brewing
Public
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Intuition Ale Works brewer and founder Ben Davis, right, and tap room manager Riley Leuthhold outside what is Downtown’s latest beer destination. Intuition’s tap room at Bay Street and A. Philip Randolph Boulevard opens today.
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Photo by David Chapman
By David Chapman Staff Writer Ben Davis was a busy, sweaty guy Saturday afternoon. The Intuition Ale Works owner and brewer spent most of the muggy day Downtown helping put the final pieces on the tap room that’s opening today. He wasn’t by himself, as about a dozen friends and employees were hustling, moving barrels, hanging signs, tidying the place up for the grand opening. “Madness,” said Davis, describing what the past week was like. Hurricane Hermine could have made it a lot more maddening. Davis received his temporary certificate of occupancy Thursday, which allowed him and others into the place. Had there been other delays, today would have been a lot different — city offices were closed Friday because of the storm and Monday for the holiday. “We would have been in really bad shape,” he said. Luckily, that didn’t happen. And after a lot of weekend work, Downtown’s newest destination was ready for the public, just in time for a key U.S. Men’s National Soccer Team match tonight and a fall full of football games in the Sports Complex. The lack of options in that area was one of the drivers for Davis, who said he always has wanted to move Downtown. The empty building at Bay Street and A. Philip Randolph Boulevard offered the right mix of space and possibilities to make it worth his investment, which is in excess of $1 million. Go to Wrigley Field in Chicago to see a Cubs game or Gillette Stadium in Foxboro, Mass., to see a Patriots game, he said, and look around. There are dining and drinking options within walking distance. “Here, it’s like you come down to tailgate or just go into the game,” he said. “There are no other options.” Now there is one near EverBank Field and the Baseball Grounds of Jacksonville. Davis closed his Riverside tap room in anticipation of the Downtown opening. It’s a location that when fully built out can host
Recession. While the suburban rate was 15.6 percent, the Central Business District was 14.9 percent, thanks to tightness on the Southbank. Among the reports, the Beaches area had the lowest vacancy rate, while Arlington and North Jacksonville posted the highest. Similarly, the highest rental rates were found at the Beaches and East Butler and the lowest in Arlington and North Jacksonville. CBRE, Cushman & Wakefield, Colliers, Avison Young and JLL Mathis continued on Page A-4
Fourth Judicial Circuit Judge Mark Hulsey retained his judgeship over challenger Gerald Wilkerson after a narrow victory that required a recount from last week’s election. Hulsey edged Wilkerson by 753 votes in the circuit comprising Clay, Duval and Nassau counties. The difference came in Nassau County, where Hulsey secured 1,628 more votes. Wilkerson won Duval County by 653 votes and Clay County by 222 votes. In all, more than 192,000 votes were cast. Hulsey had no comment about the race. Such a challenge to an incumbent judge generally isn’t typical, but Hulsey has come under fire the past two months. In July, a state Judicial Qualifications Commission found probable cause to pursue formal charges against him after allegations the judge made a series of racial and disparaging remarks since he took the bench in 2011. Shortly after the commission’s report became public, Chief Judge Hulsey Mark Mahon reassigned Hulsey from the circuit’s Criminal Division to the Probate Division. The commission in its report detailed allegations of Hulsey making a comment about how African-Americans “should go get back on a ship and go back to Africa,” as well as other derogatory remarks toward staff attorneys. Hulsey has strongly denied those claims and offered a written response to the commission in early August. The judge also requested a “Rule 23” investigation dealing with the confidentiality of the commission’s work and a possible breach that led to rumors and knowledge of the notice before formal charges were filed. He said at the time the charges became public that they “have been a poorly kept secret hanging over me like a cloud for months.”
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