The Branson metropolitan area largely avoided the work-from-home trend that began during the COVID-19 pandemic.
As a result, demand for office space has remained healthy in our area.
In fact, almost all building classifications were near capacity in 2022, according to Commercial One Brokers’ 2023 commercial real estate forecast. Class A and B were down slightly but remained strong at 95% and 92% occupancy, respectively. Class C reached a very tight 99%.
Occupancy rates have remained at these record levels throughout 2023 and are expected to remain through the end of the year.
Many businesses, especially small companies and startups, find it more economical to rent office space than to purchase an entire commercial property. Renting provides the flexibility to move as the business grows and needs change over time.
Commercial One Brokers has a wealth of experience and in-depth local knowledge to help businesses of all sizes rent office space in the highly competitive Branson market. Here are our current insights on the current office environment and tips for finding the right space.
Jump to:
- CRE & Office Space Trends
- Branson Office Space Market
- Tips for Renting Office Space
- Work with Trusted CRE Professionals
CRE & Office Space Trends
According to the National Association of REALTORS®, overall commercial leasing slowed in the second quarter of 2023. Analysts expect delinquency rates to rise in the second half of the year, stemming largely from lingering cost pressures on many businesses. A number of CRE sectors have seen slower rent growth and higher vacancy rates.
With many employers adopting hybrid work arrangements in the wake of the pandemic, office vacancy rates reached a record high of 13.1% in the first half of 2023. Tenants in numerous markets have decreased square footage per person requirements, as the industry adapts to changing work patterns and needs.
Branson Office Space Market
The office rental picture remains tight in the Branson metro area. Commercial One Brokers anticipates no significant vacancies on the horizon, with a number of factors holding back new construction:
- High building costs
- Tight labor market
- Limited material supplies
Class A
Branson area Class A office buildings posted a 95% occupancy rate in 2022, with over 101,000 square feet occupied out of a total of over 107,000 leasable square feet. New leases in 2023 have increased to $12 to $13 per square foot, with new vacancies increasing from $13 to $14. More vacancies could appear as landlords increase renewal rates and if economic weakness continues.
Class B
Class B buildings had an occupancy rate of 92% for 2022. Out of approximately 120,000 square feet of leasable space, about 110,000 were occupied. Rents increased 6% to $10.60 per square foot, with additional increases of 4% to 5% expected during 2023. Inventory is expected to remain tight in the near term.
Class C
Class C office buildings finished 2022 with an occupancy rate of 99%. Just over 122,000 square feet were occupied out of a total leasible square footage of over 123,000. Rents increased by 3% to reach $10.13 per square foot.
Tips for Renting Office Space for Your Business
There are many factors one must consider when selecting office space to rent. As with most real estate decisions, location is the biggest priority. Other considerations include parking, security, visibility, tenant synergy and the cost of any infill or redecorating required.
Prospective tenants are also advised to make a checklist of needs before selecting office space to rent. Good questions to ask might include:
- Does your office need a waiting area for clients?
- How many restrooms do you need?
- Would you like a kitchen or break area?
- Do you need one or more conference rooms or presentation spaces?
Location
An ideal location will provide convenient access for clients and, preferably, short commute times for most employees. Speak with current or former tenants to get their overall impression of the area and the surrounding neighborhood. Are there restaurants nearby for taking clients or job candidates to lunch? What are the crime patterns in the area?
Building
Important building characteristics include aesthetics, age of the building and convenient access to your office.
First, consider building aesthetics. You want a location that will make a good impression on customers and provide a pleasant work environment for employees. The commercial property for rent must have an exterior that is well-maintained with a clean, professional appearance. Make sure the building has adequate parking for clients and employees.
Second, the age of the building may affect more than just appearance. For instance, newer buildings often have higher quality heating, air, plumbing and electrical systems. If you are considering space in an older office building, be sure to inquire about whether these essential systems are up-to-date and well-maintained.
Third, make sure the building has adequate security. Customers and employees should feel safe when entering and leaving the property. Check for security cameras, alarm systems and other security features. Ensure that essential equipment will be safe from theft or vandalism when your office is closed.
Finally, interview the landlord, and get reviews from current and former tenants. Important criteria include professionalism, reliability and friendliness.
Space
Choose an office space that’s big enough to fit your team and all essential equipment. Allow some room for expected growth, such as hiring new employees, but avoid too much extra space, as this is a waste of valuable resources.
Decide whether you need separate offices for individual employees, or whether an open layout would work best for your team. Check with the landlord on what changes you’re allowed to make to your space. For example, would you be allowed to paint the walls in your brand colors? Would you be able to change the flooring, lighting or other aesthetic features? Would you be permitted to add or remove walls?
Ask the landlord who will be responsible for maintenance and repairs, both before and after you move in. Will the landlord take care of any needed fixes before you occupy the space, or will you need to take care of that yourself?
Cost
Set a budget range before you begin your search. Estimate how much space you can afford. Consider the total costs associated with your lease, including rental payments, utilities, maintenance and various other fees. Think about how long you plan to lease the location. Do you anticipate moving to a different space in the future? Or do you plan to make this your company’s permanent home? If you anticipate moving, ask the landlord about penalties for exiting the lease early.
Work with Trusted CRE Professionals
Whether you’re a startup or an established business seeking a new location, working with a reputable commercial real estate firm is essential for selecting high-quality commercial real estate listings and offering the best office space to rent.
Above all, you need experienced real estate professionals who listen carefully to your needs in order to find the best solutions. A trusted CRE firm will have a deep understanding of the local market and a keen eye for the best location for different types of businesses. They will also have extensive knowledge of leasing contracts.
At Commercial One Brokers, we have over 60 years of combined experience with commercial real estate in the Branson area. We’ve helped numerous clients of all sizes and budget ranges find the best office space for growing their business.
If you need office space for your organization but aren’t sure where to start, call us at 417-334-3149 or contact us online today!
