AT&T looking for office space, could leave Downtown Jacksonville

[thelakelander]

This would negate the Everbank move if it happens.

One of Downtown Jacksonville’s largest office tenants, AT&T, is shopping the commercial real estate market for space â€" meaning it could leave the city center when its lease expires in about two years.

full article: http://www.bizjournals.com/jacksonville/news/2012/09/11/att-looking-for-office-space-could.html

[Tacachale]

I expect they'll pursue incentives to stay if it's remotely feasible for them. That's the problem with giving incentives to companies to move from one part of town to another- the people already there want a piece too.

[simms3]

I expect they'll pursue incentives to stay if it's remotely feasible for them. That's the problem with giving incentives to companies to move from one part of town to another- the people already there want a piece too.

Agreed.  AT&T is a pretty progressive company in terms of office space, too.  They like to be in CBDs.  They like to be consolidated.  The encourage employees to use public transportation and they often have designed some of the most efficient office space around.  Would be a tell tale shame if AT&T left downtown Jacksonville, probably a precedent for the company.

[dougskiles]

Remember that AT&T only has about 200 employees left downtown.  They have been downsizing for at least a year.  During that time, Everbank added 1,700 employees downtown and have 300 more to go before the end of this year.

I don't see it as anything to worry about.  Companies are going to downsize, and move out.  Others will move in to take their place.  It is all part of a changing economy.

In fact, I would just as soon see a company that is in the process of a major downsizing be replaced downtown by one that is growing internally.

[Tacachale]

Not that it would surprise me, but they only have 200 workers over 5 floors (plus 2 more floors they're subleasing out)?

[peestandingup]

Remember that AT&T only has about 200 employees left downtown.  They have been downsizing for at least a year.  During that time, Everbank added 1,700 employees downtown and have 300 more to go before the end of this year.

I don't see it as anything to worry about.  Companies are going to downsize, and move out.  Others will move in to take their place.  It is all part of a changing economy.

In fact, I would just as soon see a company that is in the process of a major downsizing be replaced downtown by one that is growing internally.

That doesn't happen though because downtown Jax is such a toxic environment for new businesses, esp local ones. If what you said were true, then we'd have seen a few coffee shops open up to take advantage of Starbucks closing all their DT locations to fill the void. But that didn't happen. Downtown is the void.

[simms3]

Not that it would surprise me, but they only have 200 workers over 5 floors (plus 2 more floors they're subleasing out)?

Agreed, that really doesn't make sense, even for a prestigious law firm considering how large the floor plates are (which I know a big law firm would never ever have space in such a lowly building, just using it as a space reference)

How many employees does AT&T have in metro Jax?  It has to be more than 200.  So where is their suburban campus?  They have to have a consolidated campus unless they do things differently in Jax than anywhere else?

Frankly I'll take no companies leaving downtown over a major F500 credit company vacating 7 floors in the city' largest office building.  Everbank has plenty of room to grow in there, even with AT&T.

And then another question - what's going on with the building?  Is it still with the special servicer?  What's the occupancy with Everbank?  Net of AT&T?  Rents can't be going up, and up from where - $20 gross?  It's Jacksonville.  Parking can't be an issue - there's ample space across the street.  New amenities and restaurants are going up and common areas are being renovated.  This only makes the building more attractive and there's no way for whoever is in control of the building to push rents as a result considering the submarket.  AT&T loves 1980s office buildings with huge floorplates in downtown areas and near any sort of form of public transit.  This just seems so atypical that they would leave.

Who's an office broke that can explain the situation?  Thanks.

[Tacachale]

Remember that AT&T only has about 200 employees left downtown.  They have been downsizing for at least a year.  During that time, Everbank added 1,700 employees downtown and have 300 more to go before the end of this year.

I don't see it as anything to worry about.  Companies are going to downsize, and move out.  Others will move in to take their place.  It is all part of a changing economy.

In fact, I would just as soon see a company that is in the process of a major downsizing be replaced downtown by one that is growing internally.

That doesn't happen though because downtown Jax is such a toxic environment for new businesses, esp local ones. If what you said were true, then we'd have seen a few coffee shops open up to take advantage of Starbucks closing all their DT locations to fill the void. But that didn't happen. Downtown is the void.

The reference was to EverBank, which is moving in, is local, and is growing.

[dougskiles]

The reference was to EverBank, which is moving in, is local, and is growing.

Correct.

And the other point I would like to make is that much of Downtown's problem is perception.  As the saying goes, "perception becomes reality".

Continual negative statements about Downtown just continue the negative perception.  I am Downtown almost every day.  I see optimism and energy throughout, people working hard to improve it in every way.  It is a wonderful thing to be part of./

[BackinJax05]

Remember that AT&T only has about 200 employees left downtown.  They have been downsizing for at least a year.  During that time, Everbank added 1,700 employees downtown and have 300 more to go before the end of this year.

I don't see it as anything to worry about.  Companies are going to downsize, and move out.  Others will move in to take their place.  It is all part of a changing economy.

In fact, I would just as soon see a company that is in the process of a major downsizing be replaced downtown by one that is growing internally.

Agreed. Plus, it would be nice to see that building fill up. I've always liked the design of the Charter/Southern Bell - Southern Bell - BellSouth - AT&T - EverBank Tower

[dougskiles]

Office "density" also factors into the equation.

Everbank has an employee ratio of 6 per 1,000 sf (which would be like a typical company occupying a 500,000 sf building instead of the 250,000 sf they are taking.)

AT&T was averaging 3 per 1,000 sf (when they had 800 employees downtown).  I understand they are looking for 70,000 sf - and they may end up staying in the building after all.  We just don't know yet.

[tufsu1]

Continual negative statements about Downtown just continue the negative perception.  I am Downtown almost every day.  I see optimism and energy throughout, people working hard to improve it in every way.  It is a wonderful thing to be part of./

+1000

[fsujax]

or they may move to another building downtown. It doesn't mean that they would leave downtown. And spot on Doug, there is enery downtown and constant negativity doesn't help.

[SunKing]

Downtown a void?  Nothing could be further from the truth.  The current real estate/financial recession coupled with an absolutely monumental shift away from the traditional office layout would make one think that Downtown is destined to be a ghost town.  However leasing activity has been relatively stable.  That being said no one is going to build a tower anytime soon and that frankly is a good thing for downtown.  Redevelopment of existing maybe followed by midrise development...it'll happen.  whats needed is a university to relocate at least an annex to the core.

A group of us went to a concert thursday night, hit the bars afterwards, we had a great time.  others were too.  I am pretty optimistic about DTs future.

[jcjohnpaint]

Yeah what has been the news on the Trio?  There was a drumroll and then nothing. 
I think the one thing good that came out of the IBM study is that the downtown focus is too large.  If you look at the area around Chamblins and surrounding.. not too bad.  Just build out from the core that is working- call that downtown.