The vacancy rate for office space in central Arkansas dropped from 8.2 percent to 7.9 percent in the third quarter of 2015, “driven by continued improvement in the overall employment numbers for central Arkansas,” said John Martin of Moses Tucker Real Estate.
It was the eighth consecutive quarter of positive absorption. “West Little Rock had another strong quarter with over 32,000-SF of absorption and with vacancy dropping to 8.8 percent in the market. The downtown and midtown submarkets both had positive absorption of over 8,000-SF each with vacancy rates of 5.9 percent and 6.6 percent respectively,” Martin said.
“Market conditions continue to point toward new development in the office sector in each of the submarkets, including downtown North Little Rock,” Martin said. “Rental rates are expected to increase as existing inventory becomes more limited and new construction for Class A office space hits the market in the low to mid-$20s per SF.”
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