Innovation Square Leases Boost Gainesville Commercial Real Estate

By Kaitlyn McKinley posted April 1, 2016

In collaboration with the University of Florida, the City of Gainesville, and various private investors, Innovation Square is in the early stages of development. This 40-acre plot of land, adjacent to UF, is being transformed into a live, work, and play community. The goal of Innovation Square is to create state-of-the-art research, laboratory, and business spaces for companies and researchers who want access to a world-class research institution. This is the first phase of the Innovation Square project and will transform the face of Commercial Real Estate Gainesville, FL . As the office spaces get leased, the community will be built around the young, vibrant population working for the companies taking up residence in the new construction. Over time Innovation Square will be composed of spaces for commercial, retail, residential communities, science/technology business, and research laboratories. Its location near downtown Gainesville has opened up a gateway to transform the city into an urban space while promoting commercial expansion. As is evident from the boom in Gainesville leases, this project is drawing in new, local business and creating substantial revenues in commercial realty. This success is happening well before the project has even reached its peak. 

Because Innovation Square is an up-and-coming area, the increased demand for office space near UF does not seem to have a ceiling. Luedecke notes, “The increase in leasing transactions in the area between the UF campus and downtown Gainesville resulted in a 50% decrease in days on the market for the product and nearly 30% increase in the average price per square foot.” As leasing increases, the draw to Gainesville as a kind of “super business incubator” is predicted to grow exponentially. It seems as if the rest of the nation also recognizes the boost. Forbes ranks Gainesville in “The Top 10 Places to Live” and “The Top 50 Smartest Cities in America,” while Fortune lists it in “The Best Places to Live and Launch.” Nearly nine years after the market crash, Gainesville is pulling itself out of the trenches of recession and into its former glory as a hub of innovation, creativity, and entrepreneurship. With a bustling university of 50,000 students flooding the area each year, there has been an increased incentive to give the city a face-lift and improve the state of affairs. Over the course of the next few years, the market for commercial real estate can be expected to grow into one of the most prominent industries in Gainesville.

Although these indicators seem promising, it is reasonable to have skepticism about how long the industry can sustain this boost. However, Lee Nelson, the UF Director of Real Estate, dispels fear on this issue. In an interview with Ron Wayne, an independent writer for The Business Report of North Central Florida, Nelson was quoted as saying “It takes the right combination of circumstances to have private development take the lead on these, but this is the most efficient way to have a vibrant neighborhood area in the long run. Other university-sponsored offices and research parks have gestated before reaching a critical mass. So Innovation Square is certainly not lagging on a historical basis.”

Depending on your view of the project, this is great news. Although a finished product is a long way off, this type of ongoing commercial development will propel commercial real estate for Gainesville far on into the possible future.