Commercial real estate is entering a new phase, driven by shifts in workplace culture, technological advancements, and market demand. This month’s Jones Aur blog highlights the emerging commercial real estate trends for 2025 shaping Memphis and Little Rock, influencing how businesses and investors approach retail, office, and industrial spaces.
Retail Market Trends
The retail sector of commercial real estate in 2025 continues to evolve, and you may see rising rents that reflect overall sector growth. Grocery-anchored shopping centers are predicted to remain a strong investment, thanks to the essential nature of groceries and the consistent foot traffic these tenants generate. These properties also often draw regular foot traffic to their neighbors, which creates a reliable revenue stream.
Luxury retail will likely remain popular, as many consumers still value the in-person experience. Whether it’s trying on a designer piece or admiring a high-end product before making a purchase, customers often prefer tangible interactions that online shopping can’t replicate. This focus on customer experience extends to brand loyalty as well—shoppers who have a positive encounter in-store are more likely to return.
Office Space Trends
Offices in 2025 are seeing a clear shift toward open, collaborative layouts. Instead of rows of private cubicles, you’ll likely find larger common areas, modern lounge seating, and flexible meeting zones. Businesses are focusing on designs that promote casual discussions, quick brainstorming sessions, effective communication between teams, and faster decision-making. By creating these public “we” spaces, many organizations hope to spark creativity and help employees feel connected, especially as teams return to on-site work.
While these open layouts can boost employee morale by encouraging more spontaneous conversations, shared goals, and a greater sense of unity, that’s not the only thing that can make employees feel happy at work. Natural light also plays an essential role and could be an office space trend in 2025. Beyond simply helping desk plants thrive, research shows that ample daylight can improve mood, reduce eye strain, and even boost productivity. This mix of collaborative design and well-lit spaces contributes to a healthier, more engaged workforce.
Better Acoustics & Sound Proofing
Despite the increase in in-person work and many offices requiring a return to the office, Microsoft Teams, Zoom, Google Meet, and other virtual communications aren’t going anywhere. Whether it’s to call a client or touch base with a coworker on a working vacation, video conferencing, and phone calls aren’t going anywhere.
You’ll likely see an increase of small spaces designed for privacy for video and old-fashioned phone calls. These spaces have many names, like “call cubicles,” “office phone booths,” and “focus rooms.” Sometimes, they are built into an office like a library study room, or they can be movable pods. Sound-dampening features like padded walls and sleek, non-busy backgrounds for video calls make them the perfect way to maintain privacy and professionalism online without discouraging in-person collaboration in “we” spaces.
These focus rooms are also great for employees who thrive better in a quiet environment, keeping them near the action and culture with minimal distractions.
Increase In Benefits & Amenities In Commercial Real Estate Properties
As the desire to work from home persists and the uncertainty of the future of office buildings continues, many companies and property managers are ramping up the perks to attract and retain top talent and tenants. This means that in 2025, you may see a wider range of features and benefits designed to appeal to businesses and employees who want comfortable, modern work environments. Examples include:
- On-site Gyms and Wellness Centers: The presence of wellness facilities can differentiate one office building from another, leading to higher tenant retention rates. These allow employees to exercise during lunch or to wait out the evening rush-hour traffic without leaving the property, supporting a healthier lifestyle, greater convenience and productivity, and, in some cases, better work-life balance.
- Premium Security and Tech Infrastructure: Property owners can assure tenants that they take safety and efficiency seriously by investing in robust access control systems and state-of-the-art smart building features. Protecting sensitive data and secure office entry can be a key selling point for businesses comparing multiple properties or considering fully remote work.
- High-Speed Internet & IT Support: From dedicated fiber lines to on-site tech assistance, providing the best connectivity can minimize frustrations for your team and tenants in 2025.
- Updating the Aesthetic: A fresh, modern look can persuade businesses to lease space by creating an inviting, professional atmosphere. For property owners, these renovations help attract companies willing to pay premium rates for offices that align with their branding and employee satisfaction goals.
Industrial Sector Trends In Commercial Real Estate
In 2025, industrial real estate is expected to remain in high demand as companies focus on efficient logistics and storage solutions. You’ll notice an ongoing need for warehouse space driven by e-commerce and the fast-paced nature of modern supply chains. Because many distributors want to move goods quickly to their customers, properties located near major highways and transportation hubs will continue to draw significant interest.
Another trend is the growing importance of technology and automation. Many tenants want facilities that can handle advanced robotics, inventory management systems, and climate-controlled operations. At the same time, older buildings might be renovated or retrofitted to keep pace with these requirements since new construction can be slowed by high costs and limited available land.
Memphis Commercial Real Estate Trends
Office rents in Memphis are on the rise as more companies call employees back on-site, creating demand for modern, well-located workspaces, and industrial properties face a cautious outlook for new construction, partly due to higher interest rates and vacancy concerns.
Despite these challenges, the city’s economic initiatives and community improvements show promise for long-term appreciation. Memphis is experiencing steady growth in its commercial real estate market, supported by ongoing revitalization efforts and over $16 billion in planned investments. If you’re eyeing investment opportunities, staying informed about infrastructure upgrades and emerging developments could work in your favor. After all, with so much planned for Memphis, the question is: could these projects make your commercial property investment worth more in the coming years?
Little Rock Commercial Real Estate Trends
Little Rock’s commercial real estate market reflects a balance of opportunity and caution. Office vacancies may stay elevated in the near term, but companies that do return on-site are seeking collaborative workspaces that encourage productivity and interaction. Our commercial real estate agents note that industrial real estate rates are high yet steadying, although high construction costs have tempered any rush to build new facilities. Retailers, on the other hand, are opting to refurbish existing properties rather than expand with large-scale developments, aiming to keep overhead manageable.
For investors and tenants alike, prime locations with updated amenities are still in demand, indicating that properties offering modern services can stand out in a competitive market. Overall, Little Rock’s commercial sector rewards flexibility, suggesting that staying agile and informed could lead to favorable results.
Learn More About Commercial Real Estate With Jones Aur!
The commercial real estate market in Memphis and Little Rock is evolving, and having the right guidance is key. At Jones Aur, we help investors, businesses, and property owners navigate opportunities with expert insights and local market knowledge. Whether you’re leasing, buying, or investing, our team is here to assist you. Contact us to get started with an experienced commercial real estate broker, agent, or property manager today!
