Skyline Report: Commercial Space Being Absorbed, Multifamily Vacancies Increase
by April 8, 2014 10:58 am 107 views
The Skyline Report issued Tuesday by the University of Arkansas shows that while vacancy rates in commercial properties are dropping, vacancy rates for the region’s multifamily properties in Northwest Arkansas went up for the last six months of 2013 compared to the year’s first six months, and also increased when compared to the last six months of 2012. The largest jumps were in Fayetteville, where there is a student-housing boom, and in Bentonville, where multifamily units are being built near Northwest Arkansas Regional Airport.
Fayetteville saw a large jump in vacancy rates, from 4.6 percent in the second half of 2012 to 7.7 percent in the second half of 2013 as 1,989 new bedrooms were added to the market. Bentonville also experienced a large jump, from 2.4 percent in the second half of 2012 to 6.3 percent in the second half of 2013. Rogers, Siloam Springs and Springdale all had decreases in multifamily vacancy rates.
“The multifamily market continues to be very tight in Northwest Arkansas and that will continue until new units are added across the region,” said Kathy Deck, lead researcher for the Skyline Report at the Center for Business and Economic Research at the Sam M. Walton College of Business. “A tight market presents opportunities for developers across the communities of the region and we expect to see continuing announcements of additional units in the coming months.”
Fayetteville saw a large jump in vacancy rates, from 4.6 percent in the second half of 2012 to 7.7 percent in the second half of 2013 as 1,989 new bedrooms were added to the market. Bentonville also experienced a large jump, from 2.4 percent in the second half of 2012 to 6.3 percent in the second half of 2013. Rogers, Siloam Springs and Springdale all had decreases in multifamily vacancy rates.
According to the report, in the second half of 2013, 492,006 total square feet of commercial space were absorbed, while 106,399 new square feet were added, netting positive absorption of 385,607 square feet in Northwest Arkansas.