It’s been a mixed outlook for retail, industrial and office space in the central Arkansas market, but while certain indicators show different levels of activity, all signs in the post-recession lease market show positive movement.
New construction and falling vacancy rates on the retail front mean more shopping and dining opportunities in the central Arkansas area. From Benton to Conway and points in between, new stand alone stores as well as shopping centers show national retailers are taking an interest in our neck of the woods and looking for the best combination of location and opportunity.
The activity caused the first-quarter vacancy rate to fall to 4.7 percent after climbing from 5.2 percent in 2014 to 6.3 percent in 2015.
Transactions and new tenants on the office space front so far this year reflect a mildly surprising upward trend in occupancy. In 2014 the occupancy rate was 88.7 percent in the first quarter, 91.5 percent in the first quarter of 2015 and 92.8 percent in the first quarter of this year.
There is less new construction on the industrial front, where occupancy rates remain around 90 percent. After showing 89.3 percent occupancy the first quarter of 2014 and 89.2 percent the first quarter of last year, this year’s occupancy rate through the first quarter was 89.3 percent.
With new construction stagnant in the industrial market, most of the activity has come in the form of transactions in a seller’s and landlord’s market. Four transactions in the first quarter resulted in more than 300,000 SF of warehouse space changing hands in Little Rock alone.
As 2016 began, the national construction industry was preparing to grapple with certain trends ranging from skilled labor shortages to the use of new technologies and the continued popularity of green building.
Trends to watch that may affect the commercial real estate market, according to National Real Estate Investor, include urbanization (especially among millennials); a hike in interest rates; increased international capital flows into U.S. real estate; continued stress on U.S. retail and continued retail shifts; continued limited supply additions in most real estate markets and lower energy prices.
Certainly it will be interesting to see how these various factors combine to affect construction and available space in Arkansas’ markets for the remainder of this year and beyond, but as you navigate this new landscape we hope you’ll continue to rely on Lease Guide to help you find the right space to suit your needs.
In these pages our veteran writer George Waldon provides updates on the trends and new construction in, around and near Little Rock, and you can check out our comprehensive listings, provided as always by Xceligent, to find the right space, location and amenities for your business or office.
To update listings, resolve omissions or correct errors please contact Dannelle Allen at DAllen@Xceligent.com or (816) 427-9202. Recommendations for improvements or inclusions are welcome at TTraub@ABPG.com or by calling (501) 372-1443.
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