LeClaire: How do you feel Northeast Florida compares with other regions of the state?

Hanson: Jacksonville is a market that is typically less volatile than the rest of the state. Our business-friendly city government and economical business environment make Jacksonville an attractive option for businesses considering markets for new operations or expansions. The activity in our office market in 2010 as compared to other markets throughout the state is a testament to that.

LeClaire: Are certain sectors hotter than others?

Hanson: Suburban office in Jacksonville has been the most active sector. Over the last few months, Adecco, PNC, Fortegra Financial and Availity have executed leases of over 40,000 square feet. There have also been a handful of deals executed in the 20,000 to 25,000 square foot range. Based on current market activity and prospects, it looks like 2011 will continue that trend.

LeClaire: What are the most positive signs you’ve seen recently?

Hanson: The increased number of credit tenants in the market with large office requirements, improvements in the availability of capital, and the accompanying interest rates for the financing and refinancing of stabilized properties.

LeClaire: What is driving the trend of businesses and headquarters moving from urban office locations to more centralized office parks?

Hanson: Your question identifies the main factor: “centralized” location. Over the past five years or so, residential growth has been strongest along the J. Turner Butler corridor and in northern St. Johns County. As the population of office workers has migrated to those areas, office locations such as Deerwood and Flagler Center have become more attractive for businesses mindful of locating in the area where their current and future potential employees live. There is no question that the convenience of free surface parking in the suburban locations and the ease of access to those locations with I-95, I-295 and JTB, and the greater efficiency of suburban buildings compared to the high rise downtown buildings play significant roles as well.

LeClaire: What are your predictions for 2011 in Northeast Florida?

Hanson: So long as the economy remains on its current course, we should see sustained office leasing activity and gradual improvement in the industrial sector.