Thriving Future Awaits Retail, Office Development in NWA (OPINION)

Northwest Arkansas has experienced rapid growth over the last 15 to 20 years. About 500,000 people now live in the area.  It is a remarkable milestone and evidence of cooperation and collaboration of city leaders in Fayetteville, Springdale, Rogers, Bentonville and surrounding smaller towns to build a unified region.

While each has its own culture, their integrated diversities have created a vibrant urban area similar to that of larger metropolitan areas that combine multiple smaller municipalities. 

The major economic drivers of the region — Walmart, J.B. Hunt, Tyson Foods and the University of Arkansas — along with related vendors and other support companies, have created a strong and sustainable economy for Northwest Arkansas. 

The Northwest Arkansas Regional Airport also injects fuel into the region’s economic engine. One-stop or non-stop access to and from the nation’s major metropolitan areas is a real game-changer in terms of attracting new industry and a world-class labor force.

All of this means new demand for real estate development of all kinds — retail, industrial, office, residential, hotels, and entertainment properties.

When the late J.B. Hunt purchased the property east and west of I-49 to develop Pinnacle Hills Promenade, in partnership with General Growth Properties, the commercial development landscape changed. National upscale retail chains moved to the center. Restaurants and hotels soon followed along with multi-level office buildings to create an emerging skyline and a new business hub for Northwest Arkansas.

Current retail and office vacancy rates average around 10 percent throughout the region, which encourages development.

Downtown Fayetteville, including Dickson Street, remains a vibrant restaurant and retail district with stable occupancy. North Fayetteville, also known as Uptown Fayetteville, includes the nearly completed 300-acre Steele Crossing development, Northwest Arkansas Mall, Washington Regional Medical Center, office buildings, shopping centers, restaurants and apartments. The extension of Van Asche Drive west from Steele Crossing to Highway 112 opens up 150-plus acres for future development. 

Likewise, this is a renaissance period for Springdale and Rogers. Each community is tapping into its past to provide a pathway to future prosperity. The downtown revitalization efforts currently underway create exciting commercial development opportunities.

The changes in downtown Bentonville are nothing short of remarkable. Historic structures, some of which were in disrepair, have been or are being restored to their former glory. What has followed has been an emergence of locally owned restaurants and hotels in the district.

Can this continue? I think it will.

First, it is reasonable to expect a population increase of 300,000 to 500,000 people in Northwest Arkansas in the next decade. Northwest Arkansas is blessed with an educated, hard-working and competent labor force. The availability of good-paying jobs, world-class public schools, and an enviable quality of life will continue to attract and keep people in the region.

Secondly, available land is abundant. The supply of raw acreage can be easily converted to higher density commercial uses.

Finally, there are available funding sources.  National, state and local banks are aggressive in seeking loans in Northwest Arkansas because they believe in the future of the region.

With progress come challenges. Evaluation of the infrastructure needs, primarily roadways, will be necessary to accommodate growth and increased traffic.

Northwest Arkansas is a network of smaller communities that contribute to a larger regional economy. Though each is unique, they are unified in their commitment to developing a system where all benefits when one succeeds. 

Jim Irwin is the founding partner of Irwin Partners, a commercial brokerage, development and investment real estate firm with offices in Little Rock and Fayetteville. He can be reached at 501-716-5508.