Job Growth Can Stem Rising Vacancy

Quick article this morning from the Tampa Bay Biz Journal regarding office rental rate declines. Office vacancy rates can be tied to business development and employment, i.e a high vacancy rate can point to a higher than normal or undesirable unemployment rate whereas an acceptable or desirable occupancy rate points to a normal or economically acceptable employment rate. This affects our industry as well because high employment=renters while low employment=move outs and a higher vacancy rate. Cue the Circle of Life music.

One particular quote stands out to us as not particularly encouraging.

The overall vacancy rate for both counties [Hillsborough and Pinellas]has increased 2.2 percent over the past 12 months as the area's unemployment rate hit 5.6 percent in May, up from 3.7 percent a year earlier.

Up 1.9 percent form a year ago. Roughly translated that is about 20,000 workers from the counties 750,000+ workforce. Doesn't seem like a lot but that is a significant difference from the previous year and that is a significant amount of renters.

Office rental rates go down in Hillsborough and Pinellas counties (Tampa Bay Business Journal)