Category: Team Recognition

Predictions about commercial real estate in Little Rock circa 2050

In this month’s issue of the Arkansas Times, Hank Kelley shared his thoughts about what the commercial real estate industry will look like in 2050. 

Hank Kelley, CEO

Hank Kelley, CEO

Connectivity

There is demand now — and will be in the future — for unique living and workspaces in multiple-story buildings so your space can be close to other residents and professionals, and to other recreational and educational uses. The way we “go to work” now will change over the next 30 years, and the need to have the same level of hard-wall separate office areas within a building will change. More emphasis will be placed on a building’s connectivity for virtual connections than exists today. Even today, mobile professionals regularly chart their destinations based on the connection to credible Wi-Fi. In 30 years, the need for high-quality connections will be a constant and core requirement.

The exterior of buildings will hopefully be a source of energy generation through advances in solar panel technology, but not at the expense of views within the spaces. More filtering will improve indoor air quality. Rooftop decks and balconies with sunscreen canopies will be the norm as people continue to want to be outdoors but become even more concerned about sun exposure.

Mixed-Use

I believe we will continue to see an evolution of larger office buildings to include a mixture in their uses. The cost of converting their use, though, will have to be feasible before developers will invest in the remodeling needed for conversion. The conversion of office buildings to residential and or hospitality (hotel) requires extensive plumbing and mechanical alterations, and those changes will only happen when adequate demand for those uses justifies the conversion cost. In the short run, we will see workspaces within the buildings compressed to more flexible work environments and, in some cases, with even more open floor spaces for cubicle and tabletop workspaces. Landlords will become more flexible on tenant expansion and contraction needs to retain their tenants and use the surplus space they have to attract growing businesses.

The office buildings and existing residential condo buildings in Little Rock’s Central Business District represent the highest density of population per mile in our city and region, and companies will continue to be attracted by the excellent accessibility to both I-30 and I-40. People who live in midrise and high-rise buildings in the Central Business District enjoy walkable amenities now — the Central Arkansas Library, the Robinson Center, the Arkansas Museum of Fine Arts — and we believe the demand for walkable amenities will grow over time.

“’Hoteling’ of office space and rotation of in-office and out-of-office workdays will become more of a norm.”

As regards trends toward remote working, we don’t believe the majority of companies will choose a completely remote workforce because of the challenges in maintaining the culture needed to compete. “Hoteling” of office space and rotation of in-office and out-of-office workdays will become more of a norm. We continue to believe there is value in the separation of workspace and living space. The networking component of “going to work” is now and will continue to be a valuable need for workers and companies.

Energy Efficiency

We will see great advances in products and technology to conserve and generate energy, water and land at both the individual user level, but also at the utility provider level. We are hopeful those advances will reduce operating costs and help preserve our natural resources. The office building industry has been active in conservation efforts through the LEED certification process. Maintaining buildings to operate at peak efficiency will become a requirement to own and operate a building, and utility providers will charge non-compliant building owners penalties for excessive consumption.

We expect that fewer people will own their own cars, meaning we will see less of a need for parking spaces.

Finally, inflation will increase interest rates on the debt and the cost of services to maintain existing buildings. Some building owners are not prepared for their debt and operating expenses to increase, as they have been trying to maintain current rent levels with tenants. This means less income is available to pay debt and reinvest in building upgrades needed to maintain an efficient and attractive building. The squeeze of increasing costs will challenge some building owners and cause a change in ownership if those owners don’t have adequate reserves. Tenants will seek out buildings with owners who have the financial resources and desire to reinvest in their properties.

Hank Kelley is CEO and Executive Broker at Kelley Commercial Partners, and has been working in brokerage and property management in Little Rock for 36 years.

Maggie Hogan: Nominee for Arkansas Business CFO of the Year 2021

Maggie Hogan, CFO

At a luncheon to be held on November 3 at the DoubleTree Hotel, Arkansas Business will honor chief financial officers from small private companies, large private companies, nonprofit organizations, public sector organizations, education, banking, and hospitals.

For the past 13 years, Arkansas Business has recognized the men and women navigating these challenging and often behind-the-scenes positions. Kelley Commercial Partners’ Chief Financial Officer, Maggie Hogan, is among the finalists for CFO of the Year in the small private company category. Other finalists in this category include Scott Dendler of Assembled Products Corp. of Rogers, Stuart McLendon of Dyne Hospitality Group of Little Rock, and Scott Rosenberg of Travel Nurse Across America of North Little Rock. Lifetime achievement awards will be presented to Vickie Judy of America’s Car-Mart, Inc. of Rogers and Johnny McCaleb of Simmons First of Pine Bluff.

We salute all the CFOs being honored as well as those yet to be recognized for the essential work and support they provide to their companies. We are especially proud of Maggie Hogan for her leadership and dedication to our firm.

Kelley Team Members Accepted into LGLR Classes XXVI and XXXVII

Yesterday at an event in the River Market Pavilion sponsored by Central Arkansas Water, the Little Rock Chamber formally announced the members accepted into the 2021-2022 Leadership Greater Little Rock Classes XXXVI and XXXVII. Kelley Commercial Partners is proud to have one associate in each class. Eric Varner joins Class XXXVI and Brandon Sheard will be a member of Class XXXVII. Although members of Class XXXVI were accepted in 2020, the program was postponed due to the pandemic.

Eric Varner, Property Manager and Partner

Eric Varner, Class XXXVI

Partner and property manager, Eric Varner, joined Kelley Commercial in 2013 and manages premier medical buildings, office buildings, and retail centers representing major health care providers, national banking institutions, international investment firms, local physicians, and several individual investors. He coordinates overall management, leasing activities, construction management, and financial oversight for his portfolio which consists of more than 2.4 million square feet.

Brandon Sheard has been an agent with the firm since 2019. Having worked in a variety of roles and industries, Brandon has acquired a diverse but complementary set of skills and experiences that enable him to bring perspective and innovation to clients. In a relatively short period of time, he has successfully completed transactions in both sales and leasing, representing owners, users, and investors. Brandon welcomes challenges and dedicates himself to exceeding clients’ needs and expectations.

Established in 1985, Leadership Greater Little Rock seeks to develop the skills of community leaders by training and informing participants of public policy opportunities and challenges. The nine-month program covers topics including government and politics, education, social services, and economic development. Participants meet each month at a different Central Arkansas venue to explore topics through tours, lectures, presentations, dialogue, and interaction.

Brandon Sheard, Agent

Brandon Sheard, Class XXXVII

Varner and Sheard will make a total of ten Kelley Commercial associates who have been accepted into the chamber’s program. Former alumni include Jim Dailey (Class I), Hank Kelley (Class V), Daryl Peeples (Class VI), Drew Laning (Class XXXIII), Jessica Kokinos (Class XXXIII), Cynthia Lu (Class XXXIV), and Nicholas Kelley (Class XXXV).

Kelley Commercial Partners extends its congratulations to all members of the Leadership Greater Little Rock Class XXXVI and Class XXXVII.

Leadership Development for Better Client Service

Terrance “Terry” Hill of Leading Edge Development awarded Nick Kelley a certificate for completion of the course “Effective Personal Productivity.” The 9-week course is designed to increase productivity by evaluating and making productive behavioral changes, setting goals, dealing with interruptions, and determining priorities.

Hank Kelley with Terrance Hill and Nicholas Kelley

 

Hill said, “Nick is a diligent, honest, and eager student with an empathetic character that is critical in a leader.”

“The commercial real estate business is multi-faceted, fast-paced, and demanding,” says Nick Kelley, executive vice president and partner at Kelley Commercial Partners. Even with years of experience as a real estate attorney, Kelley says the industry is complicated and changes constantly. “I consider myself to be a life-long student of self-improvement. This program equipped me with new tools to provide better service to my clients and to be a better leader to our team.”

Leading Edge Development is a franchise of Leadership Management International, Inc. a company dedicated to leadership development for individuals and organizations. The company now reaches more than 80 countries and offers programs in more than 25 different languages. Mr. Hill has been teaching leadership development for 28 years.

Hank Kelley: featured keynote speaker

Arkansas Business Executive Leadership Academy

Hank Kelley joins Scott Ford, Myron Jackson, Marta Loyd, and Darrin Williams as a keynote speaker at the Arkansas Business Executive Leadership Academy Spring 2021 Program. The five-session program is designed to encourage personal development and professional growth for the state’s emerging business and nonprofit leaders. Participants will benefit from personal and professional strength assessments, on-on-one coaching, and mentoring from some of the state’s top CEOs and nonprofit executives.

Kelley will be the featured speaker for the April 16 session. Having led the company through a recent ownership and name change, he will share his expertise on “Leading through Organizational Change.” In May 2020, Kelley finalized an amicable stock purchase from former partner John Flake and the firm was renamed Kelley Commercial Partners.

Applications for the Spring 2021 sessions must be completed by February 22. The first session will be held March 5 and the final session on April 30.