Investors Showing Interest in Bentonville Office Niche

by Paul Gatling  on Friday, Nov. 9, 2012 9:06 am  

“The biggest factor is the location, and that’s what is helping here,” Mathews said. “Then the price, and the flexibility of the build-out.”

Bentonville Commerce also has added an on-site fitness center, with full-time maintenance and management staff.

“Amenities are becoming a big deal, and that is becoming more expected as far as tenants are concerned,” Mathews said.

The new landlords also have a strong reputation in the market, Gurganus said, because of their success with Bentonville Plaza. That development, which just signed an eight-year lease with a tenant to reside in the entire ninth floor, is operating at about 96 percent occupancy.

“Of all the people who could have bought it, I’m glad they bought it,” Gurganus said of the New York investors. “They don’t knock off five bucks a foot just to get a deal done. They stick with their rates and that will be good for the market.”

 

For Lease

It is a good sign for the Bentonville office market when investors buy an empty building, rather than gauge its value by the rent generated by tenants.

The East Central building has been vacant since Kennametal ceased operations there in December 2008.

But the location was too good to pass up, Saviers said. The address is less than a mile from the downtown square, and has a similar proximity to the Walmart Technology Center on Moberly Lane.

Because of that, the building should be desirable for IT contractors who work with Walmart.

The building does not have any pre-leased tenants, but Saviers said he is negotiating with several. The lease rate is about $15 per SF, and the open floor plan should be ideal for a large office user.

 

 

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