Office Space: Central Arkansas Vacancy Rate Remains Flat

by Arkansas Business Staff  on Monday, May. 12, 2014 12:00 am  

The market for commercial office space in central Arkansas remained relatively flat in first-quarter 2014 with a vacancy rate of 11.3 percent, compared with 11.5 percent in the previous quarter, fourth-quarter 2013, and 11.4 percent in the year-earlier quarter.

That’s according to the Central Arkansas Commercial Data Exchange. However, as Little Rock broker John Martin noted, it “still maintains an advantage over the national market,” which has a vacancy rate of 15.8 percent, according to the National Association of Realtors. “Rental rates remained stable with a slight increase in midtown and west Little Rock submarkets,” Martin said. “The overall market experienced positive absorption of 22,711 SF.”

Much of the area is seeing few empty offices, though it could be viewed as looking like a doughnut with a hole in the center.

“The downtown, west Little Rock and North Little Rock submarkets continue to maintain a vacancy rate of less than 10 percent, while midtown has a vacancy rate of 21.5 percent," said Martin. "However, that midtown rate is a decline of 1.5 percentage points compared with first-quarter 2013. As we look ahead to the next quarter, we continue to see good activity both as a firm and speaking with other brokers in the market, and I am optimistic that the second quarter will produce a better result.”

 

 

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