The vacancy rate of the 17.7 million-SF Pulaski County retail market shrunk to 4.7 percent during the first three months of 2016.
Among the 364 retail projects tracked by the Central Arkansas Commercial Data Exchange, 831,927 SF were listed as vacant at the end of the quarter. A year ago, the vacancy rate rose to 6.3 percent after reaching 5.2 percent during the first quarter of 2014.
“Our market is considered tight with a low vacancy rate for retail space,” said Brooke Miller, partner with Little Rock’s Flake & Kelley Commercial. “National retailers exploring central Arkansas are looking for the best locations based on consumer shopping paths and co-tenancy opportunities with other regional and national retailers.”
The Lowe’s home improvement chain finally started the bureaucratic ball rolling at city hall to develop a store on a west Little Rock site that has long captured its fancy: the northwest corner of Kanis and Bowman roads.
Farther south at the Gateway Town Center, Dave & Buster’s expects to be open for food, drinks and entertainment by June. Movie Tavern, a dine-in movie theater chain, plans to join the party with a venue in 2017.
These projects follow last year’s grand opening of the 325,000-SF Outlets of Little Rock at the Gateway development.
“The story of the last several quarters has been new construction,” said Isaac Smith, principal and executive vice president with the Little Rock office of Colliers International. “One of the key projects we’re involved with that falls in line with that is Gateway Town Center.
“We are putting up a 10,000-SF building, and 8,500 SF was preleased. That tells you there is serious demand out there.”
Pie Five Pizza, Taziki’s Mediterranean Café and Gateway Nail Salon and Spa will set up shop in the new digs.
“West Little Rock vacancy is trending way low, and with that, rates are going to rise,” Smith said. “That helps developers make new construction work.”
Down Interstate 30, retail construction is popping in Benton.
Kroger Marketplace, Academy Sports and Slim Chickens led the first-phase rollout of more than 180,000 SF at Hurricane Creek Village shopping center in Benton. Retail Connection Ltd. of Dallas is working on developing phase two, which will have about 20,000 SF of space.
GBT Realty Corp. of Brentwood, Tennessee, launched construction of the 170,000-SF Shoppes of Benton this year with an eye toward opening before Labor Day 2017.
Among the lineup of tenants at the $36 million project are TJ Maxx, Hobby Lobby, HomeGoods, Ulta Beauty, Rack Room Shoes and Texas Road House.
The proximity of Gateway Town Center at Interstates 30 and 430 to the Benton-Bryant market isn’t hurting the dual interest of retailers.
“What’s cool is people who are targeting Saline County are considering an additional store here as a draw from Saline County and Pulaski County,” Smith said.
The central Arkansas market’s ravenous appetite for eateries hasn’t waned.
“Restaurants continue to be on the lookout for good locations,” said Mark Bingman, executive broker and vice president at Little Rock’s RPM Corfac International. “Some are saying ‘Gosh, the prices are higher than Atlanta.’ We’re struggling to find pad sites they can use.”
A sampling of retail properties that changed hands during 2015 includes:
• The 125,000-SF Markham Square project at 9101 W. Markham St. in Little Rock, $11.1 million.
• The 89,724-SF Kohl’s at 7600 Warden Road in Sherwood, $9 million.
• The 42,980-SF Rock Creek Square project at 12111 W. Markham St. in Little Rock, $6.4 million.
• The 53,000-SF Westgate Shopping Center at 6313 Cantrell Road in Little Rock, $6 million.
• The 23,970-SF Colonel Glenn Plaza at 10912 Col. Glenn Road in Little Rock, $3.5 million.
“We’re seeing good prices for projects that have sold in the market, so all of that bodes well for the market,” said Jeff Yates, managing partner at ARK Commercial & Investment Real Estate of Little Rock. “The folks that are buying are seeing that there is stability here and they are willing to invest their money and take a risk that things will continue to go well.
“What is vacant is mostly stuff that’s been vacant awhile, harder to move for whatever reason. We need to see some retail development. There is demand that is not being met.”
In Conway, construction of the 441,871-SF, $65 million Lewis Crossing began last year at the southeast corner of Interstate 40 and Dave Ward Drive.
Collett & Associates of Charlotte, North Carolina, rolled out a retailing roster with Sam’s Club, Academy Sports, Ross Dress For Less, Bed Bath & Beyond, Michaels Arts and Crafts, Ulta, Petco, Dollar Tree, Aspen Dental, AT&T and David’s Burgers.
Ulta beauty products store and five clothing boutiques (Altar’d State, Loft, Jos. A. Banks, Chico’s and Carter’s) are in the Lewis Crossing mix. The first round of shop openings are expected this year.
Road work and other infrastructure construction is in motion to support the Shoppes at Central Landing, a proposed redevelopment of the municipal airport property.
Jim Wilson & Associates LLC of Montgomery, Alabama, is championing this drawing board project, envisioned as a 750,000-SF lifestyle center anchored by a 100,000-SF Dillard’s.
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