Posted 11/12/2012 12:00 am
Brian Donahue is a senior associate at the Tulsa office of the commercial real estate services giant CBRE Group Inc. Here's his analysis on the multi-family apartment market in northwest Arkansas.
“It appears our prediction of new construction spurred by a near 5 percent vacancy rate in northwest Arkansas has not yet come to fruition with very few new traditional multifamily developments planned or under construction.
“The opposite can be said for the abundance of student housing planned and under construction in Fayetteville. (The Grove at Fayetteville opened this fall, bringing 632 new beds to Fayetteville.) In addition to The Grove, there are four other student housing developments whose plans, if completed, will bring another 2,500-plus beds to Fayetteville in 2013.
“This influx of beds will most likely halt any traditional market rate apartment construction in Fayetteville.
“We expect developers will look to the surrounding areas (Rogers, Bentonville, Springdale) to add units and wait to see what kind of impact this recent student housing construction boom has on Fayetteville and northwest Arkansas as a whole.”
Northwest Arkansas Apartment Market
|Rogers (3,822 units)||97.1 percent|
|Bentonville (3,643 units)||96.3 percent|
|Fayetteville (9,622 units)||94.9 percent|
|Springdale (5,189 units)||90.8 percent|
22,276 units sampled from an estimated 28,000 total in Benton and Washington counties by the Tulsa office of CBRE Group Inc.