Value of New Commercial Construction Permits Fluctuate

The amount of commercial construction in the region varies widely from year to year but it typically represents a large percentage of the total construction activity.

Figures compiled by the Northwest Arkansas Regional Planning Commission showed building permits for commercial construction totaled $109.8 million in 1997, a 37 percent increase from 1996.

But, in 1996, commercial construction in Benton and Washington counties totaled $80.1 million, a 32 percent decrease from the previous year’s $118.4 million total.

Bob Harlan compiles the data for the regional planning commission. He says such fluctuations are not uncommon for Northwest Arkansas, primarily, he believes, because of the area’s growth. An area with a similar-sized population but slower growth would probably not experience such swings, Harlan says.

“I think, in our region, what happens is people who want to make an investment in commercial property … acquire property in little increments. When they finally get a parcel they can use, then they can act.

“Sometimes,” Harlan continues, “it takes a couple of years to get together what they want.”

He adds, “Our growth rate, is one thing that sets us apart from other areas of the same size. In areas with slower growth, I don’t think you’d see this type of fluctuation.”

In 1993, commercial construction for Benton County was valued at nearly $25.8 million and for Washington County at nearly $36.1 million. For the region, the $61.8 million in commercial construction was 54 percent higher than the previous year. Eighty-four commercial building permits were issued in Benton County. Most of them were in the county’s largest city, Rogers, with 39; Siloam Springs and Rogers tied with 12 permits each.

Washington County cities issued 123 commercial construction permits that year, including 57 in Fayetteville and 42 in Springdale.

A year later, permits were up again, 53 percent for commercial construction, for a regional total of $94 million. Washington County cities issued more than 150 permits, totaling $62.7 million while Benton County cities issued 119 permits with a combined valued of $32 million.

By 1995, commercial construction had slowed, growing just 8 percent, to $118.4 million for the region. That included permits totaling $58.2 million in Benton County and $60.2 million in Washington County.

Benton County commercial construction permits totaled $58.2 million in 1995 while Washington County cities issued 163 permits with a combined estimated value of more than $60.1 million.

Commercial construction was valued at $51.1 million in Benton County in 1996 while Washington County’s figures nearly totaled nearly $29 million. The larger cities continued to dominate in numbers of permits issued (40 for Rogers, 48 for Springdale and 47 for Fayetteville, but Siloam Springs, Lowell and Bentonville each issued more than a dozen commercial building permits).

Rogers led the region in number of commercial construction permits issued last year with 55 totaling $18.1 million.

Bentonville, however, was first in value. The 32 permits it issued totaled $34.2 million. Fayetteville was second with 38 permits totaling $21.7 million.