The CEO of Granite Properties, based in Dallas, discusses the challenges of taking over the top leadership position from its founder, the dynamics of the office market and where he intends to take the company in the future.
Development: How did you get interested in commercial real estate, and what initially drew you to Granite Properties two decades ago?
Will Hendrickson: My grandfather was in the commercial real estate industry in Dallas. I was always impressed by the close network of colleagues and friends that he had across the industry and how much he enjoyed his job. For me, the relationships I have built over the years in our industry have been the most rewarding. The projects are always fun, but they are secondary to the people.
Will Hendrickson
What initially drew me to Granite was its reputation for developing high-quality projects. As I met the team, I was impressed with its professionalism. It was a small team of smart businesspeople that took an institutional approach to running its business. It was a fun work environment that balanced an entrepreneurial spirit with a collaborative approach, and we still have that today.
Development: You’ve been with Granite much of your professional career, rising from investment analyst to CEO. What key lessons shaped your leadership style?
Hendrickson: What I have told my three sons or any young person interested in our business is that you must recognize the big moments in your career and lean into them. Put forth the effort, go above and beyond, and learn from your successes and mistakes. Then repeat.
Development: Granite underwent a major leadership transition when you succeeded founder Michael Dardick at the beginning of 2024. How did you prepare for that handoff, and what elements of the company’s culture are you most determined to preserve?
Hendrickson: I felt prepared because I was the Dallas market leader and led the day-to-day operations and growth in Dallas, which has historically been our largest market. During that time, we developed several high-quality projects, including 23Springs and Granite Park 6. Prior to that, I led Granite’s investment activities in Atlanta, Austin, Denver and Houston, which included acquisitions, dispositions, development and financial structuring. Through those two roles I was able to develop a very broad understanding of our business.
I’m most determined to preserve the balance of having an entrepreneurial spirit and a collaborative approach. It’s the cornerstone of our “One Team” philosophy, which emphasizes unity, accountability and effective communication to achieve a common goal.
Development: What has your greatest leadership challenge been since becoming CEO?
Hendrickson: Office investing has changed dramatically since 2020. Companies and employees have changed what they want and expect from their office space. As a firm, we are transforming our existing portfolio to meet these expectations. We are advancing our focus on quality and location as we look at new acquisitions and developments. Navigating these changes requires patience and constant communication with the team.
Development: How do you define Granite’s growth strategy in today’s environment of uncertainty and opportunity?
Hendrickson: We’re focused on developing and acquiring highly amenitized Class A office buildings in exceptional microlocations within top submarkets in high-growth Sun Belt cities. The workplace continues to evolve and to shift toward experiences. Companies want an elevated work experience that enhances people’s daily lives and makes their teams more productive. This is why we have a very tight filter on what we want to own. The goal is to be the premier owner in high-growth markets and deliver an exceptional performance for investors and an unparalleled experience for our customers.
As part of that goal, we have been transforming our portfolio through several developments, acquisitions and dispositions to achieve a portfolio with top assets in the best locations. These buildings outperform on vacancy, command pricing power and achieve outsized rent growth.
To continue to grow and enhance our investment capacity, we’ve expanded our capital partnerships. Since 2021, we have deployed $2.3 billion in commercial real estate transactions, consisting of $700 million in acquisitions and $1.6 billion of development funded with $1.2 billion in equity from our investment partners. In 2022, we delivered Midtown Union in Midtown Atlanta in partnership with MetLife Investment Management, and in 2025, we delivered 23Springs in Uptown Dallas in partnership with Highwoods Properties. Both projects are high-quality, highly amenitized and well-located office buildings that see strong leasing demand.
Development: What defines a “quality” office experience today?
Hendrickson: A quality office experience involves a premium building in a highly desirable mixed-use location with walkable shops and restaurants. 23Springs is a great example. The building is designed to draw people out of their leased space to enjoy the shared amenities and connect to the surrounding community. It has a customer lounge, outdoor workspace, a high-end fitness center and recreational opportunities such as a sports simulator. It also has a neighborhood park and three restaurants ranging from fast casual to upscale dining, offering a variety of options to both customers and the community. Companies don’t want just traditional office space; they are looking at the experience of the entire building and the surrounding area.
I do want to emphasize that location is more critical than ever before. We have buildings in Denver’s Cherry Creek and Preston Center Dallas that are 1980s vintage assets in great locations. They are seeing outsized rent growth and strong demand. For these buildings to be successful, they don’t have to be new. People want to be in those specific locations.
Development: How does Granite intend to stay ahead of tenant expectations?
Hendrickson: Granite is always focused on improving the customer experience. We’re constantly thinking of new ways to improve our buildings and make them feel more energizing and welcoming. To keep these buildings attractive to top talent, we continue updating them with new amenities. We stay close to our customers. Our property management team conducts regular surveys to ask what our customers’ needs are and what amenities they’d like to see.
Development: What is your outlook for the business in your market areas over the next three to five years? What major challenges do you see ahead?
Hendrickson: We break the market into two parts. On the space market side, Class A buildings in the best locations outperform leasing wise, have lower vacancies and some of the highest rent rates we’ve seen. We believe that will continue in 2026. On the capital market side, we’re seeing a return of institutional capital. Interest rates have come down and the cost of capital is decreasing, but they are still on the high side. We’re seeing an increase in office building transactions. We expect this will continue to improve in 2026. But interest rates and construction costs continue to be high, making new development across the country challenging.
That said, the market has bottomed. With continued lease velocity, we will start seeing a shift where developing office may start to make sense in select markets. New office supply is dwindling. According to CBRE, construction completions were expected to total 13 million square feet in 2025, the lowest annual total since 2012 and significantly below the 10-year average of 41 million square feet. At the same time, demand for new, high-quality office buildings will continue. That will help with the recovery of the office market, and a tightened supply will increase rent rates. There is a bifurcation of the market, but a tight supply of Class A buildings will benefit demand for Class B buildings located in top locations.
Development: Granite has embraced technology, from digital engagement apps to flexible leasing solutions. Which innovations have most changed how you serve tenants today?
Hendrickson: The most transformative innovation has been our Ready Suites. These are built-out, tech-enabled office suites under 5,000 square feet with shorter lease terms. They help customers in that size range get into their office space quickly without having to deal with designing or building out the space. Ready Suites are in most of our buildings and lease up quickly.
Development: Granite has long been known for environmentally conscious development. How do ESG and wellness factors fit into your development philosophy moving forward?
Hendrickson: We will continue our commitment to promoting wellness, sustainability and community and giving back in our office buildings nationwide. Currently, 73% of our buildings are LEED certified, and 49% are Fitwel certified. All our latest developments are designed for LEED certification, and we will continue to develop LEED and Fitwel projects.
Development: What do you look for in senior hires or future leaders within the company?
Hendrickson: I look for leaders with strong communication skills, high emotional intelligence and high collaboration skills. People who are long-term thinkers and who can inspire and develop others. Leaders who are open to and skilled at giving feedback. Reliability, confidentiality and accountability are also highly valued at Granite.
Development: Every leader faces challenges. How do you approach setbacks or difficult decisions?
Hendrickson: Resilience is key. I remind myself that setbacks, whether that’s in the market or at Granite, are growth opportunities. Not everything will go as planned. The point is to learn and grow from successes and mistakes. We also deeply value collaboration. Working with a smart, collaborative team provides a great source of support.
Development: What advice do you have for professionals coming into the commercial real estate business today?
Hendrickson: Play the long game with your career, especially when you are working with a team you like and respect. You want to work with the right group of people, because that’s who you will spend most of your time with.
Development: Leading a national firm is demanding. How do you maintain a work/life balance?
Hendrickson: My wife and I have three sons in high school and college. I’ve always prioritized spending time with them, and I’m glad I did, especially now that they’re older. I love traveling and doing anything outside. I’ve picked up golf recently, which is a very humbling experience.
Ron Derven is a contributing editor to Development magazine.
The Entrepreneur interviews are edited for length and clarity.
