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Benefits of Bringing Dogs To the Office!

 

 

Four Benefits of Having Dogs At The Office:

 

During Covid, there was a heightened increase of pet adoption at the Hillsborough County Humane Society. The trend of companies bringing employees back to the office can be a point of concern for new dog owners, who have been home with their furry, loved one. Not just new dog owners, worrying how long you are gone with your furry friend, is a concern for most pet owners. How can you remove that concern from an employee from leaving their dog at home for a long period of time? Can a company experience a paw-sitive impact in the workplace from having dogs?

 

Here are four benefits of having dogs in the workplace:

  • Reduces Stress: 

Allowing dogs in the office has been shown to help employees feel less stressed while also enhancing productivity. When an employee is allowed to bring their dog to work, oxytocin levels rise. Oxytocin is a hormone that relieves stress and decreases cortisol levels in the body and is proven to make you happier. Not only does having a dog lessen stress, but it may also help people laugh and smile more in the workplace. Both of these things help to relieve stress and anxiety. The goofy activities of a dog may instantly lighten the mood at the office.

 

  •  Increases Productivity:

The presence of a dog in the workplace may boost productivity and creativity. Employees may feel more at ease and get along better with one another. Pet owners are more productive and even creative at work when they have their dogs with them. Employees may take brief breaks to walk their dog outside, giving them time away from work. Short periods of time apart have been found by researchers to boost attention to complete tasks. Also, employees are not worried about being away from their dog while working more hours, hence increasing their productivity.

 

  • Bring Your Team Back to the Office:

Bringing dogs to work can boost employee morale. Employees are happier if they do not have to leave their pets alone, unattended at home, or pay for doggy daycare while they are at work. Especially, if employees are newer dog owners (within the last two years) their dogs are more attached (and vice versa) from working from home.  As a result, the office rapidly becomes a more relaxed environment, with happier and more pleased staff.  Employee happiness, motivation, and productivity all improve as a result. Office morale improves, and employees become happier and less anxious about getting home to their dog.

 

  • ​​Health Benefits:

It has been proven that dogs have been linked to a number of general health advantages, including lower blood pressure, cholesterol levels, triglyceride levels. Pet owners frequently have more of a drive to exercise and do other outdoor activities since pets demand time outside, which can contribute to better health.

 

Do you have a pet policy? Maybe now is the time to consider it as you evaluate how to develop company culture, hire the right folks, increase productivity and overall company morale.

 

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2025 Sales Tax On Commercial Leases

Surprise to companies who expand or relocate to Florida, Florida is the only state that charges sales tax on commercial leases. Each year this number can fluctuate based on the decisions in Tallahassee and typically is in effect first quarter of the following year. Starting January 1, 2025 to reflect the below. View the document from the Florida Department of Revenue here. View additional resource here. As you see in the below graphic, each county has their own additional taxes that are included in this number. Historically, Hillsborough County is one of the highest.

 

Always consult your CPA for tax advice especially for in municipalities that collect other taxes such as nuances in Oldsmar, Tarpon Springs, Wesley Chapel and Zephryhills.

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4th Quarter 2021 Tampa Bay Office Market Report and 2022 Forecast

Important Highlights:

Tampa Bay:

  • Office space leasing has been increasing rapidly close to what it was pre-pandemic 
  • The unemployment rate in Tampa Bay decreased to 4.9 % in December of 2021 and is expected to decrease even more in 2022
  • Average direct asking rentals are up .5 percent from last quarter, soon to be back at pre-pandemic rates
  • Rent is up 28% in the Tampa Bay Area 

Let’s Talk Rent Numbers:

Submarket Overall Average Asking Rent-All Classes Overall Asking Rent Class A
Westshore $33.43 Sq. Ft.  $28.04 Sq. Ft. 
Downtown Tampa $40.56 Sq. Ft.  $47.89 Sq. Ft. 
Northwest Tampa $24.01 Sq. Ft.  $28.92 Sq. Ft. 
South Tampa $23.33 Sq. Ft.  N/A
I-75 Corridor $ 24.88 Sq. Ft.  $28.23 Sq. Ft. 
Downtown St. Petersburg $31.45 Sq. Ft.  $32.77 Sq. Ft. 

2022 1st Quarter Forecast: 

  • Confidence in the Tampa Bay market is high, going into the last quarter of 2022 amid sustained new-to-market tenancy.
  • Tenants will proceed to bring their teams back to the office more so in 2022
  • By 2022 remaining new construction space with many buildings is expected to be over 60% leased. 

What does this mean for Tenants?

  •  Managing market expectations in key areas where office vacancies are higher than in Tampa Bay. Due to lower vacancy rates than key markets such as New York and Los Angeles, landlords in Tampa Bay are not as driven to replace vacancies as they are in other areas of the country.
  • Use available sublease space to take advantage of the market conditions we do have, which can give more reasonable rates, shorter terms, and any available furnishings.

What does this mean for Landlords?

  • To acquire a competitive advantage against Landlords who retain their face rates, evaluate concessions for tenants by changing asking rents and increasing Tenant Improvement Allowances. 
  • Make lease terms more flexible. 
  • Expect a surge of new products to hit the market. Tenants from other states are growing or migrating to Tampa. 
  • Start marketing available space 6 with a longer lead time for office space that will become available in the near future.
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Downfalls of Subleasing Office Space

Subleasing office space can offer a more superior building at a lower monthly rent, providing the Tenant the ability to be in the building they desire without the hefty price tag, flexibility of a shorter term and even use of existing furniture. 

There are rights a Tenant, who decides to sublease their space, gives up when subleasing their space. These “rights” are usually located in the “Sublease” clause in the lease between the Landlord and Tenant. 

Two main examples of building signage and an option to renew the lease. 

  1. Right of building signage is more common for a Tenant who is leasing at least a full floor of a building. 
  2. Renewal options are more common in every lease. A renewal could say, “Tenant has a one time option to renew their lease at the current market rate.” If the Tenant decides to sublease their space, majority of the time, the option of the renewal is not passed through to the Sublease. 

What does this mean for a Subtenant?

Any terms that were agreed upon for a renewal, the Subtenant does not have a right to and is subject to whatever the current market rate and how the Landlord is marketing the building. 

There are two potential issue could arise when not having a renewal option:

  1. A Tenant in the building could have First Right of Offer to the said sublease space at the end of the term, this Tenant has first position and priority over the Subtenant, to lease the space.
  2. The current market rate could be higher than the Subtenant’s budget. If the Subtenant would like to move into a relationship as Tenant to the Landlord but cannot afford a direct deal the Subtenant will have to relocate. 

 Having a Tenant Representative can bring clarity when evaluating the best decision for your business to choose a sublease or a lease a space directly

 

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How Office Space Can be Used to Hire and Retain Employees

Tenant lounge and shared areas started trending in Tampa around 2017. In commercial real estate we say, “if you build, they will come.” Landlords who wanted to fill and maintain buildings started using this to leverage office buildings to be used as a competitive advantage to gain and retain Tenants. When Covid first hit, these building amenities were shut down for a period of time and thankfully up and running again.

Companies that are facing hiring challenges and desire to bring their folks back to the office are looking for ways to stand out amongst their competitors and create an environment their team wants to experience. Gone are the days of giving lunch on Fridays and maybe a ping-pong table will cut it for “workplace culture”. Maintaining a holistic community focus is an imperative factor to accomplish both goals.

 

Where is the office building located?

The first factor in a holistic community is where the office building is located. When selecting sites ask yourself the following:

  • “Is my team already driving here?” I.e., is a grocery store nearby, popular gyms, and other stores? When companies are requiring their employees to come to the office, being located where employees plan on running errands is convenient for cities like Tampa where most folks are individually commuting.

 

  • “Is the building easy to access?” i.e., is located on major highways like i-275, Veterans Expressway, and i-4. Folks have been used to not commuting to work and being able to minimize the commute time is a lifestyle preference.

 

  • “Does my team feel safe and comfortable in the surrounding environment?” We all know when the time changes in Tampa and the sun is setting at 5:30 pm, there still can folks working past 5:00 pm whom you want to ensure are comfortable walking to their car if they are in the office later.

 

Does the inside and outside of the building support a healthy and happy lifestyle?

Tenants want to look for buildings with amenities like an onsite gym, workout classes, and outside community spaces. Tampa Bay is surrounded by water, we have outside-friendly weather the majority of the year and have the best sunsets in the entire country. Looking for buildings that incorporate an outdoor design and other wellness-oriented amenities into projects creates a flexible feel for employees to recharge and alternative workspaces to boost focus and productivity. Some great examples to look for is wifi outside, walking path, and even yoga classes offered before work or during the lunch hour.

In a day and age where finding and maintaining the right people is tough, having a holistic approach with your office space will give companies the edge needed to win the right people who align with their company.