Throughout the past financial quarter, office spaces in Gainesville have undergone a unique period of growth. With a current Market Rent per SF of $20.17, an increase of 2.42% and a current Market Sales Price/SF of $151, an increase of 5.51%

With a current market rent per SF of $20.17 and market sales price per SF of $151, an increase of 2.42% and 5.51% respectively, Gainesville’s office section is seeing increased prices across all types of office space. Additionally, the market cap rate has decreased by .11% to 8.35%. This is the lowest cap rate in over three years, with 8.54% being the average. Additionally, the 12 month sales volume is at $129 million, up from $31.7 million from last year. All of these factors indicate a booming local office market and put Gainesville on track for being extremely profitable for office space developers and investors.

However, when adjusted for inflation over the past three years, the numbers tell a slightly different story. The market rent per sq ft is at its lowest point in value over the past three years, with the average (adjusted for current inflation) is valued at $21.49. Additionally, the market sales price per SF is currently at $151, also the lowest point in the past three years and was at $156 (adjusted for inflation) at this time last year. Finally, the annual rent growth looks average at 2.4% (past three years average is 2.5%), however, again, adjusted for inflation is actually -6.1%, indicating that inflation is outpacing current rent growth in Gainesville’s office market.

Combined, these figures tell of a sector that is overall doing well, and will continue to likely do well, but is not exempt from the current national problem of inflation. Office spaces look like a solid investment, but the value benefit of that investment can be inflated if inflation is not considered.