Posted 12/9/2013 12:00 am
The vacancy rate for industrial properties in central Arkansas fell in the third quarter, dropping to 11 percent compared with 11.1 percent in second-quarter 2013 and 11.8 percent in third-quarter 2012.
“With a full year of positive absorption in the industrial segment of the market, one could get excited about the market,” said Stuart Mackey of Coldwell Banker Commercial Hathaway Group of Little Rock. “One should note, however, that the vacancy rate, while declining every quarter, has dropped less than one full percentage point in the last five quarters. It is good to see that most of the absorption is from the growth of local companies, but exploration of the central Arkansas market by out-of-state entities speaks well for the first half of next year.”
“Sales of older buildings have carried the market, but these sales have also pushed the price per square foot down," Mackey said. "Construction costs remain high enough that they encourage further use of existing stock, supporting continued sales of existing buildings, thereby keeping positive absorption in the market.”