Will the New Year be Happy - and Prosperous?

As the Holiday Season approaches, the current mood within the commercial real estate industry is not overly optimistic, and the consensus is that 2010 will be much the same as 2009. Analysts are predicting more personnel fallout within the industry, but the hope is that by late 2010, the “table will be set” for a rebound sometime in 2011.

Generally, I agree with these predictions; however, I believe there will be deals to be done in 2010. The companies that have survived, and even prospered, during this recession will continue to conduct business; they will take advantage of an extremely “soft” commercial real estate market by relocating locally, regionally, and even nationally, but with little or no expansion.

NAI Commercial Jacksonville is currently representing at least three companies that are relocating, but not expanding. In all three cases, the companies found that by relocating now, they can operate more efficiently, cost-effectively, and with greater exposure to their target markets. Interestingly, two of these companies are relocating from another city, the third is relocating from within the Jacksonville metropolitan area, and there are more of these types of transactions on the horizon.

Finally, because the Jacksonville Office Market’s base lies within the financial services sector, its recovery will lag somewhat. But with no new construction planned for the foreseeable future, there will be enough blocks of vacant space and an available workforce to attract other companies to the marketplace.