Commercial Space Skyrockets

The “Skyline Report,” sponsored by Arvest Bank Group Inc. and researched by the Center for Business & Economic Research at the University of Arkansas’ Walton College of Business in Fayetteville, released its third-quarter commercial market summary for Benton and Washington counties.
The report said that in the third quarter, more than 1.6 million SF of competitive commercial property was added to the market. That accounts for more than 1 million SF that were included in the Pinnacle Hills Promenade in Rogers.
In the office market, there was a negative net absorption of 73,283 SF after accounting for the entry of 315,915 new SF. The retail submarket saw similar numbers, with a net absorption of 844,810 SF and an additional 315,915 SF to the market.
The report also said there was less than a 1 percent climb from the second quarter to the third quarter in office and retail vacancy rates.
The biggest changes in vacancy rates since the third quarter of 2005 were decreases in both office/warehouse space and retail/warehouse space. Office/retail increased from 14.9 percent in the second quarter this year to 18.2 percent, the report said.
Medical space increased from 5.8 percent in 2005’s third quarter to 16.1 percent in the third quarter of 2006.
The Skyline Report’s commercial real estate market summary compiles statistics for average lease rates and net absorption in office, medical office, office/retail, office/warehouse, retail and warehouse space submarkets.