It looks like the Little Rock metropolitan real estate market continues to gain traction thanks to strong growth in the industrial sector.
Colliers of Arkansas, one of the world’s leading real estate management companies, saw a decline in vacancy rates and an increase in demand for space in the second quarter, according to Colliers of Arkansas. The company produces a quarterly analysis that looks at the sectors of the region’s real estate market.
Key second-quarter results show that the overall Little Rock market continues to stabilize, as industrial jobs increased by 8% and banks lead the way in new office construction.
“Industry continued to lead with declining vacancy rates and product demand, office space began to stabilize somewhat, retail trade remained stable even when users remained unsure and banks were in the lead with new developments,” the report said.
“The industrial market that became the star of the 2020 breakout continued to shine with no hint of fading away anytime soon.”
The property market in the area is showing encouraging signs of continuous improvement.
“Office vacancy rates are expected to remain stable throughout 2021, even as users are still deciding whether to leave large footprints as they continue to argue about working from home or in person,” says Colliers. “As a result, average rental rates have also remained stable. As soon as the cost of building materials levels out, we expect to see more changes in both vacancy rates and rental rates. “
Compared to the industrial sectors, the vacancy rate is 8%, in other areas, things are not so good. In the office sector, the vacancy rate is 16.3%, although this is an improvement from 20.3% in the third quarter of last year. Jobs in retail are at 17.75% – in line with the third quarter of 2020.
Colliers reports that in the office sector, suburban markets are recovering as rents rise and vacancies decline.
The retail sector will remain in a dilemma for some time to come. Colliers notes that rents fell in western Little Rock, rose in Conway and remained stable in the suburbs of Saline County, Cabot and North Little Rock / Momel.
What does it mean?
“These small trends in rates and the rise in job vacancies in the market prove that consumers and retailers still don’t believe in complete confidence,” the report said.
In the meantime, the sector is adapting to a new environment where there are fewer shoppers in stores but demand from online sales is growing. “Retailers continue to adapt their stores by increasing speed and offering self-service capabilities, as well as continuing to provide pick-up and delivery services,” says Colliers.
Banks, meanwhile, are driving growth: the report notes that five large financial institutions have expanded in the area over the past 18 months, the largest of which is Bank OZK’s new headquarters on Cantrell Road. This, of course, attracts other businesses to join forces around development.
“This significant activity in West Little Rock will continue to drive demand for value-added business-focused services and should lead to more growth in this corridor (ie Costco),” the report said, referring to Costco’s opening at mid-July.
However, the industrial sector is the star of the show, “and is not going to stop there.” Special buildings are being built in anticipation of future business growth.
Colliers of Arkansas is part of the Canadian company Colliers International. In Arkansas, the company has offices in Little Rock and Northwest Arkansas. The company manages 18.7 million square feet with total leases in excess of $ 201 million.
Ritter Communications continues its march across the state. Jonesboro is investing $ 12 million to provide 100% fiber-optic Internet services and advanced cloud solutions to businesses in the Arkansas Valley region.
The four river valley markets will be fiber-connected, starting with Alma and the Ozark this month, Fort Smith in the fourth quarter and Van Buren in the first quarter of 2022.
“Access to quality broadband internet is a must for all businesses in Arkansas,” said Ritter CEO Alan Morse. “Our high-tech Internet services use the latest technology to provide rural communities with the most reliable and affordable broadband connection.”
Construction work is underway at Fort Smith and the company’s crews will be working in the area throughout the summer. From late fall, Fort Smith facilities will be zoned.
Ritter Communications is a regional telecommunications provider serving 100 communities in four states.
Private equity firm The Stephens Group announced last week that its portfolio company DISCO has completed its initial public offering. The shares began trading on the New York Stock Exchange on July 21 under the symbol “LAW”. On Thursday, they traded at $ 45.75.
DISCO is an online research tool for law firms, legal service providers, and governments. The company was founded by Kiwi Camara in 2013.
“We congratulate the entire DISCO team on this well-deserved achievement,” said Aaron Clark, Managing Director of The Stephens Group. “We invested in DISCO for the first time in 2016 and we have a wonderful partnership.”
BIKE.co now offers its bike rental and bike rental services in Northwest Arkansas, offering services in Bella Vista, Bentonville, Fayetteville, Fort Smith, Rogers and Springdale.
“BIKE.co fills a gap in the market by providing high quality and attentive mobile bike services at an affordable price,” said Nate Need, founder of BIKE.co. “Our model allows cycling enthusiasts to spend less time solving complex maintenance issues for their bikes and more time doing their hobbies.”
BIKE.co also offers mobile phone rental services at rental locations that offer a variety of brands, models and sizes for business and personal use.
More information is available at bike.co.