State Farm in Tacoma Affects Pierce County Vacancy & Rental Rates

The Business Examiner is reporting that State Farm's move into nearly 300,000 square feet of downtown Tacoma office space has had a noticeable impact on both commercial vacancy rates and the average per-square-foot cost of those commercial spaces.

That development dropped Pierce County's vacancy rate from 13.1 percent to 9.8 percent as State Farm's leases commenced. Kidder Mathews' forecast calls for even more decrease in the vacancy rate, though at a modest pace.

Asking rental rates, conversely, rose by $1.05 per square foot full service mid-year, bringing the current average to $20.77 per square foot full service.

Vacancy rates going down. Rental rates going up. The trend is expected to continue. Are you feeling optimistic?