Little Rock is among the country's top 10 markets to watch for commercial real estate investors, according to Sperry Van Ness, a commercial real estate advisory firm of Irvine, Calif.
The firm's list highlights places businesses might want to relocate. The survey said markets that made its list are forward-thinking and have great growth potential, offering businesses an environment where they can expand.
The list said Little Rock is considered a "well-kept secret" that might not be a secret much longer. It noted that Little Rock's central business district has seen a big boost from the new Clinton Presidential Library, which has "spurred more than $7 billion in new downtown retail, hospitality, office and residential construction."
"This will certainly attract new businesses and residents to the CBD, which already is attractive to businesses with its urban feel and convenient area amenities that together help create the overall vibrancy of an active downtown environment," the report said. "Major office-using industries coming to - and expanding in - the Little Rock area include state and federal governments, non-profit organizations, University of Arkansas departments, medical and research companies, as well as telecommunications and financial services firms."
The list also said that despite the residential construction slowdown, "the overall strength of the Little Rock economy makes this a solid investment market to watch."
Other markets on the list are: Austin, Texas; central New Jersey; the Carolinas; Houston; New York; San Francisco; and San Jose, Calif.
Here is the complete segment of the listing on Arkansas:
Little Rock
Consistently overshadowed by other, larger metropolitan areas, Little Rock, Arkansas is considered a well-kept secret. But the secret may not stay a secret for much longer. Numerous accolades-including being recently named the second Most Diverse Economy in the United States by Moody's Investment-have served to underscore the strong activity in the marketplace and have further promoted the burgeoning area's vibrancy and success. Vacancy rates in Little Rock are currently at 10.6 percent while rental rates have climbed to a market-wide average of $13.03 per square foot. As the year progresses, it appears that Central Arkansas will continue to see bullish activity from all real estate sectors. This may be particularly true for office product in Little Rock's Central Business District (CBD), which now has even more appeal with the opening of a popular new draw: the William J. Clinton Presidential Center. The completion of the presidential library has spurred more than $7 billion in new downtown retail, hospitality, office and residential construction. This will certainly attract new businesses and residents to the CBD, which already is attractive to businesses with its urban feel and convenient area amenities that together help create the overall vibrancy of an active downtown environment. Major office-using industries coming to - and expanding in - the Little Rock area include state and federal governments, non-profit organizations, University of Arkansas departments, medical and research companies, as well as telecommunications and financial services firms. With such industry diversity and activity, the area can expect to see rent grow to $13.52 per square foot per year before year-end 2008. Though the residential construction slowdown will contribute to a slowing in area job growth this coming year versus previous years, the overall strength of the Little Rock economy makes this a solid investment market to watch.
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