Skyline Report Shows Significant Absorption

The 24th edition of Arvest Bank’s Skyline Report for Benton and Washington counties is sure to be well-received.

That’s because the report, issued March 1, indicates the first consequential positive absorption in the commercial real estate market since the third quarter of 2008. A total of 387,877 SF was absorbed in the second half of 2010, according to the report.

“This quarter’s report shows some early positive signs in the commercial market for the first time in quite a while,” researcher Kathy Deck said in an accompanying news release. “While encouraging, we do still have a long way to go in working towards a more balanced commercial real estate market.”

Deck is director of the Center for Business and Economic Research at the University of Arkansas’ Walton College of Business. The CBER conducts the Skyline Report, a quarterly analysis of commercial, single-family residential and multifamily residential property markets in the two counties.

The report, sponsored by Arvest, has been ongoing since 2004. Highlights of Tuesday’s release included:

• A total of 142,414 SF in the office submarket became occupied, with net positive absorption of 138,254 SF. Rogers had the greatest total with 89,000 SF.

• The office vacancy rate decreased from 21.9 percent in the second quarter of 2010 to 20.5 percent in the fourth quarter.

• In the office/retail market, there was positive net absorption of 76,114 SF. Rogers led the way, with 46,432 SF.

• A total of 80,898 SF of space in the retail submarket became occupied, netting positive absorption of 63,299 square feet. Rogers had 53,303 SF.

• Rogers also led the warehouse submarket, with 94,080 SF of net positive absorption. The overall submarket had positive absorption of 80,155 SF.