In the heart of Florida’s largest city, empty office towers have become a defining feature of Downtown Jacksonville’s skyline. At the close of 2023, more than 26% of all downtown office space sat vacant—far outpacing the vacancy rates of other major Florida metros like Tampa (14.5%), Orlando (11.8%), and even Downtown Miami (17.6%). By the end of 2024, that vacancy figure ticked even higher to 28%, underscoring a growing mismatch between supply and demand—and raising uncomfortable questions about what’s next for the city’s struggling urban core.

The Numbers Behind the Vacancy

According to Downtown Vision Inc.’s 2024 “State of Downtown” report, Jacksonville is experiencing a widening gulf between ambitions for revitalization and the on-the-ground realities of office demand. While billions of dollars in residential, hotel, and entertainment development are either underway or proposed—totaling nearly $8.8 billion in pipeline projects—office tenants aren’t keeping pace.

In contrast to booming development headlines, the downtown workforce shrank, visits remain below pre-pandemic levels, and over one in four office spaces are empty. And though some suburban office markets in Jacksonville posted healthier absorption numbers in early 2025, downtown’s core has failed to rebound from the pandemic-era shift to remote and hybrid work.

What's Driving the Exodus?

Several factors are contributing to downtown’s office vacancy problem:

• Remote and hybrid work remains entrenched. Nearly half of downtown workers now work remotely at least part of the week. This national trend is particularly impactful in Jacksonville, where office culture was already less dense than in cities like Miami or Atlanta.

• Perception of safety. Companies like Citizens Property Insurance, a major state-run employer, cited safety concerns and homelessness as reasons for relocating away from downtown, bypassing incentives to remain in the core.

• Competition from the suburbs. Jacksonville’s Southside and Butler Corridor continue to attract office users with newer buildings, better amenities, and fewer quality-of-life complaints. In Q1 2025, overall citywide office vacancy declined slightly to 10.3% thanks to strong suburban demand—underscoring downtown’s disconnect.

• Zombie developments and stalled projects. Key downtown redevelopment initiatives like the Laura Street Trio and Independent Life Building are either mired in lawsuits, stalled by high costs, or entangled with developers in default. These high-profile setbacks cast doubt on the credibility of the city’s investment pipeline.

Statewide Contrast: Why Jacksonville Stands Out

While Florida’s other urban cores are not immune to office market pressures, none are seeing the vacancy rates Jacksonville is facing. In Miami’s Brickell neighborhood and Orlando’s urban core, vacancy hovers near or below 12%. These cities benefit from stronger population growth, higher average incomes, global investment, and a more robust mix of industries that require in-person work.

Downtown Jacksonville, by contrast, has a narrower employment base and historically lacked the density and vibrancy to keep workers engaged outside the office. Even as new residential units rise—over 2,000 are under construction—actual population downtown has dipped, and storefronts remain empty or underutilized.

Conversion or Collapse?

With such high vacancy, industry watchers and urban planners are asking: is it time to rethink what downtown office buildings are for?

Adaptive reuse—converting aging or underutilized office space into housing—has been a successful strategy in cities from Los Angeles to Philadelphia. In Jacksonville, the concept is gaining traction, particularly as demand for downtown living slowly increases.

However, conversions come with high costs and logistical challenges, particularly in older buildings with outdated layouts or asbestos issues. Additionally, Jacksonville’s incentive structure heavily favors ground-up construction, leaving fewer tools to support adaptive reuse despite its potential to activate the urban core.

Who Loses—and Who Could Win

• Landlords and legacy owners of outdated Class B and C office space are already suffering from prolonged vacancies and limited demand. Many are unlikely to fill space without steep rent reductions or major renovations.

• The city faces a budget crunch. As office space goes dark, tax revenues drop, while demands for infrastructure, public safety, and incentives for developers grow. Policymakers may soon have to choose between bailing out stagnant projects or reinvesting elsewhere.

• Residential developers and adaptive reuse champions could be the biggest beneficiaries—if city leaders shift policy to make conversions feasible. A more diverse downtown population would also support retail, restaurants, and nightlife that have long struggled to find footing.

The Outlook: Turning the Corner or Just Treading Water?

Downtown Jacksonville is at a crossroads. With billions in proposed development and a new stadium on the horizon, the city wants to project momentum. But unless it confronts the core issue—an oversupply of outdated office space in a market that no longer needs it—the heart of downtown may remain underutilized.

Some signs of life are emerging. Leasing activity citywide increased sharply in early 2025. Office absorption was positive. And the broader push toward in-person work nationally could offer modest support. Still, Jacksonville’s path forward will depend on creativity, coordination, and the willingness to rethink the very blueprint of its urban center.

Empty buildings can be liabilities—or opportunities. Whether downtown Jacksonville can seize the moment will determine whether it remains a relic of the past or becomes a reinvigorated hub for a new generation.