Latest news with #ArvestSkylineReport
Axios
29-07-2025
- Business
- Axios
Report: Northwest Arkansas' office space still in high demand
Office vacancy rates in Northwest Arkansas fell to a 15-year low of 4%, while the national rate edged to a record 20.7% in Q2, according to a Cushman & Wakefield Sage Partners analysis. Why it matters: Commercial property is an indicator of an area's economic vitality. Low vacancy rates often signal strong economic demand but can drive up rents and limit space for businesses. The big picture: National office vacancy rates have mostly increased in the past decade and have hovered around the 20% mark since last July. The rates have largely decreased in Northwest Arkansas during the same period. "We are now seeing all kinds of businesses move into the area because of the population growth, because of the job opportunities and because of the economy and the pro-growth strategies we have," Tom Allen, president of Sage Partners, told Axios. He's not always leased to law offices and CPA firms, Allen said. "Now we're a true market, a true MSA that has all kinds of businesses that really don't do anything with Walmart." State of play: In its Northwest Arkansas market summary, Sage Partners of Rogers, one of the largest commercial brokers in NWA, compares a few key trends between the region and the U.S. The company is set to publish its NWA-specific summary Tuesday. By the numbers: Along with vacancies, the analysis notes an estimated average price per square foot being paid in the market. Office — Combined office space leases averaged $25.50 per square foot, compared with a national rate of about $38. Yes, but: Lauren Blass, brokerage associate with Sage, said most of the leases she's done lately are in the $33-$37 per square foot range. Industrial — Warehouse space was near zero in 2022, but all industrial is now at about 6% due to more than 500,000 square feet being vacated during the second quarter. Sage forecasts the vacancy rate will shrink in the next year. Retail — Retail space is at an unusually low 3.39% vacancy rate and leasing for about $19.31 per square foot. "You're talking about a historically low vacancy rate … low 3% is too low," Sage CEO Marshall Saviers said. "What the market is saying is: 'We need more neighborhood retail. We need more retail that's walkable, bikeable, etc., etc., etc.'" With developments such as the Whole Foods and Ruth's Chris in Rogers nearing completion, the retail vacancy rate is forecast to increase in the next year. Multifamily — The vacancy rate is 8% for multifamily housing, roughly in line with the national average. Prices for single-family homes have skyrocketed in recent years, according to the Arvest Skyline Report and a recent Walton Family Foundation study. "I expect that [vacancy rate] to go down as less is being delivered and more folks have to rent," Saviers said. The bottom line:"It's the biggest issue of our region," Saviers said about infrastructure. "It's the one thing that could hold us back if we're not super intentional about it."
Axios
28-07-2025
- Business
- Axios
Developer to offer lower-priced units, $10K stipends in rezoning push
Developer Core Spaces will offer low-income units and relocation stipends in its new University of Arkansas student housing proposal, Fayetteville Flyer first reported. Why it matters: Fayetteville's student housing is booming while options for lower-wage earners are shrinking — especially near the city's center. The big picture: Seventeen student-focused complexes have added more than 10,000 beds in Fayetteville since 2009 — with 2,620 more approved and under construction, and several others pending or stalled. State of play: A 719-bed building between Hill and University avenues proposed by Core of Chicago was among one that's been rejected. The planning commission denied its request for rezoning nearly three acres in May. Core's new proposal will include 37 units intended for the general public with rent based on 50% of the area median income. A one-bedroom unit would cost $891 per month; a two-bedroom, about $1,020. Reality check: The average rent for multifamily housing in NWA was $1,075 per month in the second half of 2024, according to the Arvest Skyline Report. Core also proposes to give first right of refusal for those units to residents who now live in the apartments that would be demolished. Each leaseholder would receive $10,000 to cover moving expenses. Tenants who move out before construction is set to begin would not receive the money or the right of refusal, Andrew Savoy, vice president of development with Core, told the Flyer. What they're saying:"I hope that this sets a precedent as an example for other projects of what you can do," Fayetteville's economic development director Devin Howland told the Flyer.
Axios
29-04-2025
- Business
- Axios
Northwest Arkansas' home prices compared
The median home sale price in Northwest Arkansas was $370,000 at the end of March, below the national median of $431,000, according to Redfin. The median price statewide was $264,000. Yes, but: The average selling price for a single-family home during the last half of 2024 in Benton County was $449,750 according to the most recent Arvest Skyline Report. It was $402,322 in Washington County.
Axios
09-04-2025
- Business
- Axios
NWA's commercial real estate is "balanced," report finds
More than 2.1 million square feet of commercial real estate opened in Northwest Arkansas during the second half of 2023, but the overall vacancy rate dropped to slightly to 5.8%, according to the biannual commercial Arvest Skyline Report released Tuesday. Why it matters: Commercial property is an indicator of an area's economic vitality. Vacancy rates in the single digits are generally good for developers but can drive up rent and make desirable space harder to find. The latest numbers in the report show the market remains "balanced and healthy." By the numbers: The 5.8% rate combines all commercial real estate — from class A office space to warehouse — and is down from 6.4% half-way through 2024. The area's three largest submarkets closed the year with office space dropping from a 7.5% vacancy rate to 6.3%; warehouse from 8% to 7.6%; and retail from 6.2% to 4.9%. The big picture: Nationwide, vacancies hit a new high in 2024, with 20.4% of office space in the country's top 50 metro areas empty, per a Moody's analysis. Flashback: There was almost no available warehouse space to lease in late 2022 as contractors snapped it up to stage construction materials for the Walmart Home Office. "There was clearly demand for various types of … the big warehouse space, and also the flex warehouse space," Jeff Cooperstein, researcher with the Center for Business and Economic Research at the University of Arkansas, told Axios. "And we're seeing it get built, which is good, and then it's getting absorbed … at a good speed, I'd say." Reality check: Medical office space remains tight, with a 1.9% vacancy rate. Yes, but: Medical office space is somewhat dependent upon larger institutions being completed — such as the Heartland Whole Health Institute and Alice L. Walton School of Medicine. Adjacent office space likely won't be built until the full scope of the needs are understood, Cooperstein said. Fun fact: Hotels aren't considered leasable commercial space but are included in building permit data. There were 1,190 new hotel rooms in 10 new properties under construction at the end of 2024, almost doubling the number of NWA rooms over the past 15 years. The total number of rooms now stands at about 9,300.
Axios
25-03-2025
- Business
- Axios
Northwest Arkansas home sales surge 14%
Despite higher interest rates, more than 5,300 homes sold in Northwest Arkansas during the second half of 2024. The big picture: The total marks a 14% jump from a year earlier, making it the third-highest half-year number recorded in 20 years by the biannual residential Arvest Skyline Report released Tuesday. Why it matters: Housing prices and rents in part determine who can afford to live in NWA and the wages they need to maintain their quality of life. Lower- and middle-range wage earners in the area have found it increasingly difficult to buy or rent living space. Zoom out: Nationwide, a shortage of "affordable" homes means buyers compete for the cheapest ones, pushing up prices, Axios' Emily Peck writes. By the numbers: The average selling price for a single-family home during the second half of 2024 in Benton County was $449,750, up 7% from a year earlier. It was $402,322 in Washington County, up 4%. Those prices are up more than 120% from a decade earlier. Newly built homes made up nearly 40% of sales for the second half of the year — 2,058 homes — a record in Skyline's data. Multifamily vacancies in NWA were at 3.3%. Skyline authors say this was driven by 506 new multifamily units added during the six-month period, with a total of 1,533 new units added during calendar year 2024. Average lease rates for multifamily housing rose to $1,075, up nearly 7% year over year. What they're saying:"Despite the headwinds caused by higher interest rates and the new legislation concerning NAR [the National Association of Realtors] at the end of the summer, the residential market in Northwest Arkansas remained steady throughout the end of 2024," Rob Lambert, real estate agent for Collier & Associates, told Axios. "Unfortunately for most families, prices will continue to rise as long as inventory remains low," he added. Homeowners are opting to stay in their homes to avoid mortgage interest rate increases, which leads to fewer homes being for sale, Mervin Jebaraj, director of the Center for Business and Economic Research (CBER) at the University of Arkansas in Fayetteville, said in a news release. Arvest Bank contracts with CBER to produce the Skyline Report. "However, strong population growth is fueling new homes being built, and this is driving growth in overall sales," he said. Reality check: Nearby smaller cities experiencing rapid growth are facing infrastructure limitations that "may shift the location of future development without some major infrastructure investments," Jebaraj said. What we're watching: Residential building permits climbed to 3,007 for the six-month period, the highest amount recorded by the report since 2006 and a measure of what the market can expect in the near future. Nearly 2,100 of those permits were in Benton County and 930 in Washington County. Multifamily building permit value — another broad measure of activity — was valued at $523.8 million across 31 projects during the second half of 2024.
