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Warning: My office building's vacancy rate just hit 12% and I didn't see it coming
I was reviewing the quarterly report for our property in Tempe and the number jumped out at me. We had a solid 95% occupancy for years, but two midsize tech tenants left last month and we only filled one spot. It matters because our loan terms get reviewed if we drop below 90%, and now I'm scrambling. Has anyone else in a suburban office market had a sudden dip like this?
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grant.margaret6mo ago
Nah, that's been brewing for a while.
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avery_fox936mo ago
Remember how my friend's plant died after months of weird yellow leaves?
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evaperez4mo ago
Tempe is a solid market but 12% is still nothing compared to what I've seen in Phoenix proper. The real issue isn't that tenants left, it's that you probably didn't have a waiting list or enough smaller tenants to backfill quickly. If your loan terms are that strict, maybe it's time to rethink your tenant mix instead of blaming the market.
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