As the country comes to grips with new and unfamiliar territory I think it only prudent to watch your occupancy like a hawk. More important watch the unemployment trends in your sub-markets very closely. I think as we watch this economic shock wave move so shall we watch unemployment rise, occupancies drop and pricing power erode. I guess the somewhat positive note is that no one is building. That is
not to discount our good construction men and women out there. This too
shall pass. My comments are not meant to sound overly pessimistic but it is to suggest that a scenario like I saw today will become more and more prevalent.
A young man called me to plead for a way out of his lease. He had just been laid off and had no where to go and was desperately looking for another job. My gut said follow the established protocol and wish him luck. The instant I hung up the phone I pondered the bigger picture. This could be the start of a trend and or validation of a trend that is well established and under sensationalized.
What are you seeing out there in your various markets?