The Skyline Report is prepared by the University of Arkansas’ Center for Business and Economic Research with a goal to provide “statistical analysis of the Northwest Arkansas’ commercial real estate market.” The report focuses on office, retail, and warehouse in Washington and Benton counties.
Commercial Highlights Second Half 2020:
1. Overall commercial vacancy remains steady across the area at 10.8% compared to the first half of 2020. Considering the impact of the pandemic on many markets, our market appears to be stabilizing; a trend we hope to see continue throughout 2021.
2. While the regional vacancy rate remained the same from the first half of 2020, there was an overall negative absorption of 51,573 square feet. This absorption might have been positive if it weren’t for the 495,676 new square feet that entered the market.
3. Warehouse was the only submarket to add no new square feet in the second half of 2020. While the vacancy rate rose for warehouse from 8.3% to 9.3%, it remains the lowest vacancy among retail, office, and warehouse.
4. Medical office continues to be a strong performer in our market. Vacancy either decreased or remained stable in Rogers, Bentonville, Fayetteville, Springdale and Northwest Arkansas as a whole decreasing to 4.4%.