The Tallahassee Leon County Office of Economic Vitalityshows the office vacancy rate in Tallahassee is currently lower than the year before the pandemic. In 2019 the vacancy rate was 6.1% in 2023 it was 5%.
Despite this, the Leon County Property Appraiser office told me there was a decrease in the number of parcels classified as "office buildings" over the last year. There was 2078 in 2022 compared to 2059 in 2023.
- Although the coworking spaces represent less of a physical footprint they are still contributing to both the tax base and the economy.
BROADCAST TRANSCRIPT:
Working from home for our neighbors in Downtown Tallahassee has gotten more popular over the last few years.
I was curious about the rise in coworking spaces in our neighborhoods and wanted to know what they mean for the tax base if more people are leaving their physical offices and opting for a shared space in one building.
I visited Domi Station a popular co-working space serving
both Downtown and College Town.
Fresh coffee, bathrooms, and working space for any budget point are some of the many selling points of Domi Station.
Natasha Acoff is an IT professional who can work from home- but she realized she needed more structure.
"I needed a space to come to that I wasn't just sitting at home," Acoff said. "So once I dropped my kids off at school, I find myself right here at Domi station, working feeling like I'm a part of a team and a family."
The non-profit business incubator and coworking space has existed since 2014.
"We mainly catered towards tech companies," Dacia Williams, Domi's Director of Community Engagement said.
Post-pandemic the draw of remote work both popularized coworking spaces and changed the people Domi serves.
"Right now our membership is made up of brokers, real estate agents, software engineers, remote workers, tech, remote workers, or tech consultants, and then we also have a few lawyers who work in here as well," Williams said.
With the rise of working from home, companies leaving office spaces for hybrid work, and people moving to co-working spaces, I wondered how Leon County's commercial real estate was impacted.
"A lot of people have told us that we're a more cost-effective option here in Tallahassee considering how much private office space is," Williams said.
Let's look at the numbers:
The Tallahassee Leon County Office of Economic Vitalityshows the office vacancy rate in Tallahassee is currently lower than the year before the pandemic. In 2019 the vacancy rate
was 6.1% in 2023 it was 5%.
Despite this, the Leon County Property Appraiser office told me there was a decrease in the number of parcels classified as "office buildings" over the last year. There was 2078 in 2022 compared to 2059 in 2023.
So how did this impact the tax base?
I was told by the appraiser's office that vacancy rates can impact total valuations based on publicly available information.
But by how much was still not clear.
Here's what we do know:
The most recent 2023 report from the Leon County Property Appraisersshows:
Commercial properties, which include—but are not limited to office spaces— make up about a third of Leon County's tax base. In 2023 Leon County saw an increase in the number of commercial properties and both their market value and taxable value increased.
The executive director of Domi said businesses are thriving.
"Since 2014, Domi station has seen $282 million worth of economic impact in our area," Kara Holbert, Domi Executive Director said.
Although the coworking spaces represent less of a physical
footprint they are still contributing to both the tax base and the economy.
"The businesses that come through Domi whether it's co-working or incubation as they grow as a business, they add more jobs to our community, which in turn help other families become more sustainable financially," Holbert said.
Over the next few weeks, I'll continue to look into the increased value of commercial real estate in our Midtown and Downtown neighborhoods. If you own a commercial property, or if you rent from one and would like
to share your story email me at shamarria.morrison@wtxl.tv.
