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The office has long been a symbol of permanence and promise. Having a corporate headquarters or a well-located regional office has traditionally equated to legitimacy and operational stability. Inside those walls, teams collaborated, relationships formed, deals were made and careers were shaped.
Then came COVID-19. Remote work surged, flexible arrangements became the mainstream and clickbait headlines proclaimed the “death of the office.” But as we enter 2026, that narrative deserves a refresh. The office isn’t disappearing— it’s evolving. And in markets like Arkansas, where business growth and talent attraction remain closely tied to place, that evolution is especially visible.
- Flight to quality: One of the most consequential shifts since COVID has been the flight to quality. Tenants are no longer evaluating space solely on price per square foot. They’re looking for environments that support talent attraction, community-building and productivity. We saw this clearly in 2025, as commercial real estate platform Crexi reported that 80% of large leasing transactions involved companies relocating into higher-quality space rather than renewing. This trend is playing out locally as well, with Arkansas tenants preferring newer, well-amenitized buildings that reflect their brand and culture.
- Strategically located properties: As we often say in real estate, it’s all about location, location, location. Office selection has shifted from where you are to why you are there. Today, the office must justify its place in a company’s operational strategy by offering an environment that supports productivity, culture and connection. By delivering the right experience, it can serve as a key driver of talent attraction and retention. In Arkansas, that often means accessibility and proximity to amenities.
- Vacancy is turning a corner: After years of elevated vacancy rates, there are clear signs the market is stabilizing. According to Cushman & Wakefield’s Q4 2025 MarketBeat report, net absorption turned positive in the final six months of the year, totaling 2.5 million SF in the most robust back-to-back performance since COVID-19. Yardi Matrix further reports that the national office vacancy rate peaked at 19.9% in March 2025, declining by 150 basis points since, with some major metros seeing drops of as much as 300 basis points. While Arkansas markets are not immune to these pressures, many have fared better than national averages, benefiting from lower costs, steady in-migration and sustained business expansion.
Contrary to what some may believe, remote and hybrid work hasn’t eliminated the need for the office. Despite improving fundamentals, this isn’t a return to the office model we knew back in 2019, either. Instead, it’s an evolution toward a leaner, more experience-driven workplace — one designed to support collaboration, culture and talent development. For companies and property owners across Arkansas, the opportunity lies in recognizing that the office’s value today isn’t measured by pre-COVID standards, but by how effectively space supports people and long-term business objectives.
Clay Ramey is a partner and vice president of capital markets for Tempus Realty Partners, an investor-centric real estate investment partnership that has acquired more than $1 billion worth of property across 25 states since its founding 10 years ago. Email him at [email protected].
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