Tag: Arkansas Times

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.

Flake & Kelley Commercial Transitions to Kelley Commercial Partners

Kelley Commercial Partners
Hank Kelley, CEO Kelley Commercial Partners

Hank Kelley, CEO Kelley Commercial Partners

Hank Kelley, CEO, is pleased to announce that Flake & Kelley Commercial is now Kelley Commercial Partners. An amicable stock purchase transaction was finalized on May 6th, and an agreement entered to purchase John Flake’s stock in Flake & Kelley Commercial.

Day-to-day operations will continue to be led by Hank Kelley, with Daryl Peeples, Maggie Hogan, and Nicholas Kelley in executive management roles. The Little Rock partner team also includes Cheryl White, Bill Pendergist, Brooke Miller, Eric Varner, Cynthia Lu, and Kevin Pledger. Jay Pearcy serves as principal broker in Northwest Arkansas.

Kelley Commercial Partners will continue to provide brokerage, property management, development management, and consulting services. Kelley Commercial Partners is a Chainlinks member helping to connect retail and hospitality clients through this productive network of commercial real estate companies across the United States.

“Aside from a new name, Kelley Commercial Partners remains Arkansas’s premier commercial real estate firm with the same commitment to first-class client service,” said Kelley.

The firm maintains an award-winning team of more than 80 trusted, skilled professionals and support staff. The team is experienced in meeting the real estate needs of our clients and customers and are laser-focused on delivering superior commercial real estate services.

“We are excited about the future of the company. While we are proud of what we have accomplished over the past three decades, looking forward, we know the best is yet to come,” said Kelley.

Kelley Commercial Partners remains headquartered in Little Rock with a Northwest Arkansas Office to serve the entire state.

Flake & Kelley Commercial Elects New Shareholder Partners

Little Rock, AR (December 21, 2018) – Flake & Kelley Commercial is pleased to announce the election of four new shareholder partners. Nicholas Kelley, Cynthia Lu, Kevin Pledger, and Eric Varner have earned shareholder status in the company to join existing partners John Flake, Hank Kelley, Daryl Peeples, Cheryl White, Maggie Hogan, Kathy Groce, James Harkins, Bill Pendergist, and Brooke Miller. With the addition of these new shareholders, Flake & Kelley now has partners across every department, including: brokerage, property management, accounting, human resources, and maintenance.

Hank Kelley, CEO of Flake & Kelley Commercial, commented: “Our new shareholders are an important part of our future as they demonstrate a high degree of knowledge and care for our clients.”

John Flake, Chairman, joined Mr. Kelley in congratulating the new partners: “Our new shareholders represent the finest in professional services. We are delighted to recognize their many contributions to Flake & Kelley.”

Nicholas Kelley joined Flake & Kelley in 2017 and serves as Executive Vice President for the company. He is also a member of Flake & Kelley’s Executive Committee. Nicholas is a member of the company’s brokerage/leasing team, representing such clients as Arthur’s Steakhouse/Ocean’s at Arthur’s and Riverside Properties and properties including Two Financial Centre and the Blandford Building. He also provides guidance to Flake & Kelley’s team on a variety of complex legal matters.

Nicholas is a graduate of the University of Georgia (BBA, Real Estate and Finance) and the Walter F. George School of Law, Mercer University (JD). Mr. Kelley received The American Bar Association Section of Labor and Employment Law and the Bureau of National Affairs Award for excellence in the study of labor and employment law. Prior to joining Flake & Kelley, Nicholas practiced as a commercial real estate attorney with the Little Rock firm of Quattlebaum, Grooms & Tull, PLLC and most recently with a large Am Law 100 firm in Atlanta, Georgia (McGuire Woods LLP). Nicholas is recently completed the Arkansas Business Executive Leadership Academy.

Cynthia Lu joined Flake & Kelley in 2013. As a member of the company’s transactional team, Cynthia is responsible for traditional brokerage, leasing, and tenant representation. She represents national, regional, and local retailers such as AT&T, Firebirds Restaurants, Mattress Firm, PetSmart, Signet Jewelers, and Taco Bueno. Cynthia is also a leasing agent for a number of retail centers, including Westchase Plaza, Markham Square, The Village Shopping Center, and Lewis Crossing in Conway.

Cynthia is a summa cum laude graduate of Rice University (BA) and earned a master’s degree from Georgia Tech University in Building Construction & Facility Management. Cynthia was one of the first LEED (Leadership in Energy and Environmental Design) accredited professionals. She is a member of ChainLinks Retail Advisors and the International Council of Shopping Centers (ICSC). Cynthia was recognized as one of Little Rock Soiree Magazine’s “Women to Watch” in 2017. Cynthia has recently been selected to participate in the Leadership Greater Little Rock Class XXXIV.

Kevin Pledger joined Flake & Kelley in 2014 and serves as Director of Facilities. He is responsible for directing all activities for the facilities department including the repair, maintenance and construction of all Flake & Kelley managed properties.

Kevin is a member of the American Society of Healthcare Engineering (ASHE), the Arkansas Association for Healthcare Engineering (AAHE), the National Fire Protection Association (NFPA) and the American Society for Heating, Refrigeration, Air Conditioning Engineers (ASHRAE). Prior to joining Flake & Kelley, Kevin served as the Operations Manager for the Arkansas Building Authority.

Eric Varner joined Flake & Kelley in 2013. As a member of the company’s property management team, Eric oversees the management of some of Central Arkansas’ premier office buildings, medical buildings, and retail centers, including Two Financial Centre, The Village at Pleasant Valley, Westchase Plaza, and Shackleford Crossings.

Eric is a graduate of Ouachita Baptist University (BA – Business Administration). Eric was recently awarded the designation of Certified Property Manager® – CPMs are recognized as experts in real estate management and they are at the top of the profession. Eric is also active in Park Hill Baptist Church, Urban Promise, and FORE Ouachita.

For further information, please contact:

Paula Guajardo, Director of Marketing

Flake & Kelley Commercial

501.244.7540 (direct)

501.960.3693 (mobile)

pguajardo@kelleycp.com