The vacancy rate for office space for the central Arkansas real estate market fell to 7.7 percent in the third quarter of 2017 compared with 8.1 percent in the third quarter of 2016.
“The greater Little Rock office market continues to make small gains as unemployment remains below the national average at 3.2 percent and as several relocations and expansions provided for positive absorption of 3,598 SF in the third quarter of 2017,” said John Martin of Moses Tucker Real Estate of Little Rock. “Class A office improved with a 6.6 percent vacancy rate and with 5,582 SF of positive absorption, while Class B dropped to 8.3 percent vacant with 36,073 SF of negative absorption, mostly with the reduction in office space coming from west Little Rock. Target absorption for 2017 is 200,000 SF and is currently 172,329 SF through the third quarter.”
“I expect market conditions for the greater Little Rock area to continue to make small gains as we are also seeing new construction for medical and general office of over 150,000 SF that is either currently under construction or that has been announced, like the new 60,000-SF corporate headquarters for Privacy Star in Argenta,” said Martin. “Rental rates remained stable, but are expected to increase in response to increasing construction costs and market conditions.”
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