Commercial Boom Shifts From Offices to Retail

For years the commercial real estate story in Northwest Arkansas has been the impact Wal-Mart Stores Inc. has had in the area. As fast as office buildings were constructed, they were filled by vendors to the world’s largest retailer.

But the influx of new office buildings, particularly in Benton County, has increased the demand for other commercial properties. Retail stores and restaurants have begun to take notice of the Benton County market. Those were areas formerly reserved for the most part for the Washington County market, particularly near the Northwest Arkansas Mall in Fayetteville.

But commercial developments along Interstate 540 such as Scottsdale Center, Village on the Creeks, Pinnacle Point and Beau Terre have been accompanied by several new residential developments. In turn, those developments have made it more practical and attractive for retailers and restaurants to move into the bustling Benton County market.

“Benton County has exploded the past few years as far as office space,” said Ted Viala, vice president of Shearin Hathaway Group in Rogers. “It has come pretty much full circle. The growth of all the restaurants coming in and the big department stores. … It’s just pretty unbelievable. We thought it had to happen because of the explosion of Wal-Mart and its support teams coming to the area. The office market is still thriving. But the residential end of it has gone out the roof. Just over 500 new residential lots were passed through the Bentonville planning commission [as of June 5]. The projected growth here is just astronomical. They are already saying Benton County will double in the next 10 years.”

The trend has been for the new buildings to be very upscale. And the businesses are paying dearly to join in on the Benton County movement. Case in point: Copeland’s of New Orleans restaurant recently purchased a 1.54-acre lot at Scottsdale for $662,112.

“Life’s changing, changing fast,” Viala said.

The latest census numbers show why Rogers and Bentonville are becoming more than just bedroom communities for Wal-Mart’s general offices and Wal-Mart related businesses. And with Northwest Arkansas Regional Airport located just a few miles away, the job of convincing prospective businesses to move into the Rogers/Bentonville area is much easier.