Posted 2/24/2014 12:00 am
The vacancy rate for industrial space in central Arkansas in fourth-quarter 2013 fell to 10.1 percent compared with 10.9 percent in third-quarter 2013 and 11.6 percent in the year-earlier quarter.
“The central Arkansas industrial market finished strong in 2013 with total annual absorption at year-end of 700,000-plus SF,” said Drew Holbert of Colliers International. “Since our industrial market bottomed at 16.8 percent in late 2010, we have seen our vacancy rate drop to 10.1 percent, which is still slightly above the national average of 9.2 percent.”
Holbert says the forecast shouldn't grow quiet any time soon.
“Activity remains strong and demand continues to outpace supply, which has resulted in landlords being able to hold firm on price and in some cases increase rents in submarkets where supply is limited. As a tertiary market, we use some of the primary markets around us as activity barometers," said Holbert. "Memphis, Dallas, even Indianapolis are key industrial markets we consider, and all are experiencing an increase in spec development. That usually translates to increased activity in our market, and that’s consistent with what we’re seeing now.”