Downtown Jax employment

[Southbanker]

Maybe I am just bored today, but I am looking for some general downtown employment numbers.  Approximately how many peeps work downtown?  Does anybody know what the downtown office occupancy rate currently is?  60% maybe?  I really have no idea.

I am a professional and have lived in Jax for about 15 years.  I have never worked downtown and know very few who do.  My impression has always been that downtown has CSX, government workers, and some law oriented jobs.  Obviously, I know there is more than that, but really do not know what is here.

It seems like whenever I hear about a company in Jax they end up along the JTB/Gate corridor or south of there.  I wonder how downtown compares to the 3 main southside areas (JTB, The Avenues, and 95-St. Aug Rd)?

I am sure someone will direct me to a link on this site that has that info.

[jaxtrader]

The last I read (and I am not in the business), the downtown vacancy rate was about 18 %. While  it certainly has deteriorated since then, the implied 40 per cent vacancy that you reference would be disastrously high (many properties would be unable to carry the mortgage). Just for comparison, there is talk of a severe downturn in Manhattan office rents because the vacancy rate is there approaching ten per cent. Of course, these are numbers that fail to account  for much underutilized or available for sublet space, so true vacancy rates are higher, but you get the idea. I don't know of a site that publishes the rate, but Jax Business Journal carries periodic updates.

[thelakelander]

Currently, Downtown is home to approximately 56,000 employees, representing 13% of the county's overall employment base.  Downtown's most concentrated areas of employment are as follows:

Northbank Central Business District - 22,000 employees
Southbank Business District - 12,000 employees
Riverside Avenue - 10,000 employees

Major employers in Downtown Jacksonville include
Aetna

Baptist Healthcare
Blue Cross/Blue Shield
City of Jacksonville
CSX Transportation
Federal Government
Fidelity National Financial
Medical Services Company

http://downtownjacksonville.org/about-downtown/demographics-and-statistics/

[Southbanker]

Ah yes, for some reason I always want to exclude the Riverside Big 2 (Fidelity and BCBS) when I think of downtown.  But they are part of the downtown core.

If that 18% vacancy rate is correct then that really surprises me.  I thought I saw where it was quite a bit higher.  Maybe not 40%, but definitely more than 18%.

Thanks for the info.

[stjr]

Funny, where are the names of all the companies on top of the towers and other buildings?  Everbank, Wachovia, BofA,  BBT, ATT, Aetna, Prudential, SunTrust,Times-Union, JEA, Modis, Maxwell House?  How about Regency Centers, St. Joe, the hotels, food and entertainment establishments? A big chunk is lawyers, CPA's, consultants, insurance, advertising/marketing, software, IT, and other professional firms.  Also, some communications companies that need to be in proximity to the ATT switch on Clay street.  And, don't forget the museums, theaters, churches, and, now, residential buildings.  And the State office complex on Davis and at FCCJ.  I think if you scanned the directories of most downtown buildings, you would be surprised at the number of businesses downtown.  Oh yeah, how about that "giant" of an industry, all those parking lot operators!

Downtown may be lacking in many "blockbuster" employers like CSX or Fidelity, but some of these other companies have 500 to 1,000 employees each and many have 50 to 500.  It adds up fast.  Diversity may actually be a virtue.  Look at Charlotte getting wiped by the misfortunes of BofA and Wachovia who I believe employed some 25% or more of their downtown before falling.

I suspect the biggest vacancies are being created by the reductions in force in banking, insurance, and real estate and the ripples therefrom.  In my opinion, over time, government-related and professionals probably constitute a greater percentage of the downtown workforce, than in years past.  We have not only lost many bank and savings and loan HQ's, but also big mortgage banking and insurance company HQ's.  Of course, there are all those department stores and other lost retailers.  Many companies have moved employees to the suburbs or elsewhere including Blue Cross, Baptist, ATT, BofA, and CSX even while maintaining a downtown presence.

What would be a concern to me is that most of the large operating companies downtown have had roots there for decades.  I don't see many totally new entries in the last 20 years except Modis and Aetna.  Everbank includes the old Alliance Mortgage which began downtown as Charter Mortgage.  It eventually moved to Southpoint, and was finally acquired by the Everbank interests.  All the others grew up downtown or were acquirees that were already downtown and drew in the parent company.  Where will tomorrow's big employers come from and what will it take to attract them?

[vicupstate]

If that 18% vacancy rate is correct then that really surprises me.  I thought I saw where it was quite a bit higher.  Maybe not 40%, but definitely more than 18%.

Thanks for the info.

I wonder if that rate doesn't count space that is rented, but isn't occupied?  Does it include space  that is available for sub-leasing ?

[Ocklawaha]

Ah yes, for some reason I always want to exclude the Riverside Big 2 (Fidelity and BCBS) when I think of downtown.  But they are part of the downtown core.

If that 18% vacancy rate is correct then that really surprises me.  I thought I saw where it was quite a bit higher.  Maybe not 40%, but definitely more than 18%.

Thanks for the info.

Naw y'all have been led astray by Stephendare. It's not 18% vacancy. I have a Jacksonville hunch that the figures are for "owned property" and kinowing our city, we can't even find at least 18% of the owners...

Vacancy? City Hall is 99%

OCKLAWAHA

[Steve]

No, I'd buy the 18% Vacancy.  The Business Jornal Publishes this ever quarter (I think).  It's been between 15 and 20 for a little while now.

Remember, it it goes above 20, then it would be unlikely that the owner of the building could carry the note.  Very few buildings are owned by the people who's name is at the top (CSX and Fidelity are probably the biggest exceptions, since both of the buildings that bear their names are full.