
In a time when office markets across the country are grappling with remote work and rising vacancy rates, Northwest Arkansas (NWA) is standing apart.
According to Cushman & Wakefield’s Sage Partners’ Q1 2025 Market Report, the region’s commercial real estate market continues to buck national trends.
A closer look at Q1 2025:
Northwest Arkansas Office Vacancy:
- 4.4%—lowest since 2010
- 1.5M SF of net absorption over 12 months
- National vacancy average: 13.9%
The past 12 months saw 1.5 million square feet of net absorption, a sign that employers and tenants alike continue to bet on the region’s long-term growth.
“The region’s strong fundamentals, the return-to-office movement, and steady business expansion are all driving this trend,” Marshall Saviers, CEO, Cushman & Wakefield Sage Partners
Retail Momentum:
- Retail vacancy: 3.25%
- March sales tax up 13.3% YoY in top 4 cities
- Bentonville: 80% jump – the highest monthly revenue on record
Industrial Trends: While dipping slightly in late 2024, industrial demand showed signs of recalibration in Q1:
- 87,824 SF of net absorption
- Flex industrial space continues to outperform
- Rent growth persists as developers respond to shifting logistics needs
But it’s not just commercial square footage telling the story of a region on the rise.
Venture capital investment topped $28 million in Q1, much of it flowing into health care and supply chain technologies.
Construction began on OZ Trails’ first chairlift-served mountain bike park in Bella Vista, a nod to the region’s growing outdoor recreation economy.
The Alice L. Walton Foundation moved forward with plans for two major specialty health campuses, signaling long-term investment in quality of life and health care access.
Transportation infrastructure is also scaling up to meet demand. XNA enplanements rose 9% over the previous year, and major upgrades to Highway 112 and the Springdale Bypass are actively underway.
All told, the Q1 2025 Market Report paints a picture of a market ahead of the curve. While many regions are still waiting for a commercial rebound, NWA is already there, and the team at Sage Partners is tracking its continued evolution. With offices in Rogers and Little Rock, Sage Partners specializes in brokerage, capital markets, and asset services. Their local market insight allows them to track shifts quickly and advise clients with the context of both regional momentum and national benchmarks.
For more data and insights, view the full report at sagepartners.com/news.