Northwest Arkansas Market Summary
April 2008
Commercial Real Estate Market Summary for Benton and Washington Counties
This report is the thirteenth edition of the Skyline Report for Benton and Washington Counties—Commercial Real Estate Market Analysis. Researchers at the Center for Business and Economic Research in the Sam M. Walton College of Business at the University of Arkansas produce the Skyline Report to provide timely statistical analysis of the Northwest Arkansas commercial real estate market. The information contained in the Skyline Report is critical for lenders, developers, contractors, and potential lessees. Because of the fast pace of growth in Northwest Arkansas, the commercial real estate market is fragmented with many local and national commercial real estate professionals competing to serve the needs of a burgeoning business community. Having current information and analysis provides a competitive advantage over those who make decisions without the benefit of hard data.
Highlights from the Second Quarter of 2007
- In the second quarter of 2007, 687,347 square feet of competitive commercial property were added to the Northwest Arkansas market. Almost 500,000 square feet of that space was new offi ce space, including the Superior Building in Bentonville. In the offi ce market, there was negative net absorption of 297,184 square feet. This includes the addition of the vacant 370,000 square foot Superior Building in Bentonville to the commercial property market.
- Within the retail submarket there was absorption of 94,017 square feet and the entry of 110,510 new square feet, netting negative net absorption of 16,493 square feet.
- The office/retail submarket in Northwest Arkansas added 86,934 square feet and absorbed 47,829 square feet. The vacancy rate increase to 21.9 percent in the second quarter from 20.3 percent in the first quarter.
- No new square feet of warehouse space were added to the Northwest Arkansas market in the second quarter, but the vacancy rate increased from 18.7 percent to 20.1 percent.
- From March to May 2007, there were $62.0 million in commercial building permits issued in Bentonville, Fayetteville, Lowell, Rogers, Siloam Springs, and Springdale. This is a decline of 35.7 percent from the prior quarter, and a decline of 34.9 percent from the second quarter of 2006.
Multifamily Real Estate Market Summary for Benton and Washington Counties
This report is the twelfth edition of the Skyline Report for Benton and Washington Counties—Multifamily Real Estate Market Analysis. Researchers at the Center for Business and Economic Research (CBER) in the Sam M. Walton College of Business at the University of Arkansas produce the Skyline Report to provide timely statistical analysis of the Northwest Arkansas multifamily real estate market. This study is a companion piece to the quarterly single-family residential and commercial Skyline Reports. As the population of the region grows, there is increased demand for all types of housing. Understanding the supply of multifamily housing opportunities is critical to understanding the overall residential market, particularly as low interest rates have made home ownership more appealing relative to leasing comparable residential space. The information contained in the following pages details the current condition of the multifamily market and sets the stage for future comparisons.
Highlights from the Second Quarter of 2007
- Vacancy rates for multifamily properties in Northwest Arkansas increased from their first quarter level of 9.4 percent to 9.9 percent in the second quarter of 2007. The second quarter 2007 vacancy rate was signifi cantly higher than the second quarter 2006 vacancy rate of 7.5 percent.
- Siloam Springs had the lowest aggregate vacancy rate at 6.2 percent, down from 8.7 percent in the first quarter. The Fayetteville vacancy rate also fell 0.2 percent to 7.0 percent in the second quarter. The vacancy rates in Bentonville, Rogers, and Springdale were up from the first quarter to 18.0, 7.2, and 13.3 percents, respectively.
- In the past twelve months, multifamily building permits were issued with a value of $23.0 million. In the second quarter of 2006 that number was $101.1 million. The average lease price per month for a multifamily property unit in Northwest Arkansas was down about $2 to $512.
- On a price per square foot basis, multifamily units were least expensive on average in Siloam Springs at $0.54 per square foot and most expensive on average in Fayetteville at $0.64 per square foot.