Vacancy Rate Declines in Central Arkansas Office Space

The office market in central Arkansas continues to see improvement, with the second quarter of 2015 becoming the seventh quarter in a row to experience positive absorption.

The vacancy rate dropped to 8.1 percent in the second quarter compared with 8.5 percent in the first quarter, “driven by continued improvement in the overall employment numbers for central Arkansas,” said John Martin of Moses Tucker.

“Both Class A and Class B office properties have experienced strong absorption at more than 180,000 SF year to date, with the largest gains coming in the west Little Rock and midtown markets," said Martin. "Downtown experienced positive absorption of about 9,800 SF in the second quarter and maintains the lowest vacancy rate, at about 6.1 percent.”

“The outlook for the remainder of 2015 is good with steady occupancy rates and a small increase in rental rates expected," said Martin. "In addition, we are already seeing signs of new office inventory planned in the west Little Rock market. The two most active industries remain those related to health care and technology, and I expect that to continue.”

(Take a look at the commercial real estate market in central Arkansas with the Arkansas Business Lease Guide.)