Arkansas Business - Office Space Q&A

Office Space Q&A :

Flexible Spaces Flex Muscle in Market

: Highest demand has been for “flex” space (portions of space allocated to warehouse, storage, service functions) and for modern, open-plan Class A space in suburban locations with comfortable parking. However, there is still a solid base of demand for urban spaces with “cool” vibes that are valued most by younger employees. : Some activity in Class A suburban office space has continued and slightly less activity in the downtown office market. Convenience oriented and visible locations are active for a variety of users both service and medically related. : We had seen kind of sustained and growing interest in office leasing. The businesses that call on Walmart and the businesses that call on them and just the businesses that are growing just naturally because of the expansion in this market. They all seem to need additional office space. We’d seen a pretty robust office leasing market and a pretty tight inventory. That was a strong segment of the market. : Most people are not wanting to make long-term decisions right now. They’re wanting to kind of sit this next six months out and see what the world looks like then. : In northwest Arkansas we’ve seen a shift of many Class B office space tenants migrating upwards to Class A. Class A has been a new entry into this market. … There are many tenants that are looking to upgrade. So that’s probably what’s most popular right now.

What types of properties seem to be most in demand in your sector and why?

JEFF HATHAWAY

HANK KELLEY

CLINTON BENNETT

ZACK KIFER

TOM ALLEN

Do you expect these trends to continue?

JEFF HATHAWAY

TOM ALLEN

Pre-pandemic where did you see downward trends?

JEFF HATHAWAY

How did your sector perform in the previous year?

JEFF HATHAWAY

TOM ALLEN

How has the pandemic affected the market from your perspective?

JEFF HATHAWAY

HANK KELLEY

ZACK KIFER

How has the pandemic affected the day-to-day ways in which you do business?

JEFF HATHAWAY

JOSH BROWN

What was the biggest surprise of the past year?

JEFF HATHAWAY

TOM ALLEN

What’s the outlook for the office market for 2020-2021?

JEFF HATHAWAY

JOSH BROWN

HANK KELLEY

CLINTON BENNETT

TOM ALLEN

| June 29th, 2020

Arkansas Business Article