Office Demand Slips

by George Waldon  on Monday, Aug. 15, 2011 12:00 am  

Orion Capital Partners of Little Rock and Lend Lease Dasco of Palm Beach Gardens, Fla., are helping make the St. Vincent West project happen.

John Martin, senior broker at Little Rock’s Moses Tucker Real Estate Inc., said the office projects that are faring best are those with owners willing to invest to keep properties updated and upgraded.

“Those are the ones who have been able to take advantage of a down market and put strong lease packages together,” Martin said.

“It’s still somewhat soft, but we’re starting to see some more activity during the past 60 days.”

Vacancy Rate Little Changed
During the first quarter of 2011, the office vacancy rate in Pulaski County fell slightly compared with fourth-quarter 2010, to 12.5 percent from 12.6 percent.

“Unemployment numbers remain largely unchanged in the central Arkansas region, influencing only moderate positive absorption of office space the past four quarters,” said Greg Joslin of Irwin Partners. “Continuing trends are concessions to credit tenants, shorter lease terms, office downsizing and upgrades to smaller office space in higher-class properties.”



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