The vacancy rate for industrial space in central Arkansas fell slightly in fourth-quarter 2014, slipping to 11.6 percent compared with 11.7 percent in the third quarter and 11.8 percent in fourth-quarter 2013. That rate “is the lowest we’ve experienced in the last five quarters,” noted Drew Holbert of Colliers International-Arkansas.
The Little Rock market absorbed 48,638 SF in the fourth quarter. Flex space saw the greatest demand in 2014, with 139,039 SF of absorption for the year.
“With the recent commitment by FedEx Ground and the number of bulk users currently searching the market for space, we have great momentum to start off the year,” said Holbert. “We expect vacancy rates to continue to tighten, which will lead to higher rental rates in some submarkets and potentially some additional user-driven development.”
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