There is no market at all for downtown shopping. That can change, but that is the current situation.
There is no demand for more hotels downtown, either. Hotels in downtown Jax suffer from a lack of conventions and events and tourism.
There is no means for someone local to put in something with a cool factor. Sometimes it requires major capital partners like Canyon-Johnson Funds or private funds with the experience based in other cities. They don't seem to be coming to Jacksonville any time soon and nobody in our town has the experience or capital to risk that much money to put in a cool boutique hotel with major restaurant/bar/club/shops when there is no proven demand and only proven "non-demand" for such things in our city.
This is a single tenant office building, and as we can see there is demand for that in limited quantities downtown (not a huge government or HQ city).
Basically, JEA has no reason or incentive to do *anything* with the building. They own it and occupy the entire thing. It is only 220,000 SF, which is smaller than the 12 floor mid-rise apartment building about to go up next to me (325,000 SF), and it was last renovated 30 years ago (which would make it a C- property in the eyes of private landlords).
It would be a difficult building to convert to hospitality or residential use considering the elevator shaft is on one side, the back side, leaving a huge block of usable floor space. And a renovation of the base to address the street better and for aesthetic purposes (basically no income producing purpose for our public utility that we pay for because they can't put rentable shops down there) would cost a couple million dollars, at our expense through fees or rate hikes (if the city does not foot that bill, and why should they?). The building's floor plates are open, but not really large enough for huge servers, which tech/healthcare companies use. Its uses are very limited.
BUT, something can be done about the thing at the top, and I think someone with political clout should start a campaign for it to garnish city/political support to do something there. It will have to be run by the city, inadvertently, since JEA is a municipal institution, which happens to own that building and the land. A private group can run the restaurant or bar and brand it, perhaps lease it from JEA, but a private group can't own that part of the building outright. JEA, even if it leases it out, will have to fork over a good $75+/SF in tenant allowances to get that thing running again.