The total vacancy rate for industrial space in the central Arkansas real estate market fell to 9.6 percent in third-quarter 2017, compared with 10.6 percent in third-quarter 2016.
“This is the first quarter in the last five quarters without significant leases greater than 25,000 SF,” said Stuart S. Mackey of Coldwell Banker Commercial Hathaway Group of Little Rock. “While this quarter’s small negative absorption is based primarily on changes in smaller user spaces, large industrial space is still trying to find its place in the market.”
The industrial market recorded 12,470 SF of negative absorption during the third quarter of this year.
“Changes in retail delivery options are being felt in distribution warehouses around central Arkansas and creating a need to adapt to the changing market,” said Mackey. “Demand for smaller spaces, a way to take advantage of a change in urban warehouse utilization allowing easy access to products for fast customer deliveries, will drive the market in the coming years.”
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