The world of office spaces is changing rapidly! As more companies embrace remote work and hybrid models, there is a growing demand for flexible office spaces that can accommodate changing needs.
Let’s talk about office space! I have spent 15 years of my career heavy in landlord rep and leasing office space. That world is changing rapidly.
As more companies embrace remote work and hybrid models, there is a growing demand for flexible office spaces that can accommodate changing needs. This presents an opportunity for landlords and developers to reposition their properties to meet this demand.
We are most definitely seeing this new reality in #northwestarkansas projects like Ledger have changed the game and elevated the expectations of what it means to be a class “A” office building in the market. This new breed of office building has also helped elevate our market rent rate which is a positive for every landlord whether they own class “A” or class “C” property. For many years we hovered around $20/sf-$25/sf for class “A” office space. In the last 3 years that has risen to $30/sf-$35/sf for new class “A” office. There was a time you could build out a space from white box with TI allowance of $40/sf-$60/sf. We now regularly see TI projects well over $100/sf.
Office space is quickly becoming a user experience game and not just a “look at my big tall building” flex. You better bring the heat related to building amenities, functionality, technology and aesthetics if you want to see action at top of market rates as a landlord.
PS… Fayetteville office brings the heat! it’s a great example of how an office space can elevate the energy of the team working in it.
Grady Mathews Realtor®