Apartment work lifts Northwest Arkansas construction permit values 14.87% in May

Through the first five months of 2016 the four largest cities in Northwest Arkansas have issued new residential and commercial construction permits valued at $504.646 million, up about 100% from $251.722 million a year ago.

Apartment (multifamily) construction has been a large part of the increase with projects valued at more than $42.505 million issued so far this year. While the year is off to a great start, building activity was mixed in May across the region. The local construction pace in Benton and Washington counties was fairly steady with a year ago, except for one large apartment complex addition at the Links of Fayetteville, which pushed permits higher in May compared to the same month in 2015.

Fayetteville, Springdale, Rogers and Bentonville together issued new construction permits valued at $85.722 million in May, up 14.87% from the $74.622 million reported a year ago. The commercial sector which includes large scale multifamily was roughly 60% of the permit values reported in May.

Lindsey Properties is adding a new phase to its Links community in west Fayetteville, located between Rupple and Mount Comfort Roads. Developers got permits to construct 420 new units in this apartment community for a combined permit value of $30.477 million. Without this large multifamily project commercial permits across the four cities would have been valued at $20.681 million, down 48% from the commercial values of $40.436 million a year ago, which did not include any multifamily.

Fayetteville’s total commercial permits were valued at $33.357 million in May compared to $10.633 million a year ago. Aside from the large multifamily development, the city also issued a permit for the construction of Raising Cane’s Chicken Fingers restaurant at 1788 W. Martin Luther King Blvd. An office building is also being constructed at 2410 W. Mount Comfort Rd. That permit was valued at $539,546. A small (for lease) retail center is also being renovated at 1777 W. Martin Luther King Blvd. That permit was valued at $235,011.

In Bentonville, there were commercial permits valued at $7.346 million, down 35.83% from $11.449 million reported in May 2015. The largest of those permits involved a small multifamily addition by Buffington Homes valued at $1.228 million. This development includes patio homes and a club house.

Also in Bentonville, a new retail store for Smoothie King will be located at 3410 SE J St., according to a permit valued at $401,016. A complete overhaul of the former Benton County Daily Record offices at 104 SW A St., is also underway. That permit was valued at $2.9 million. This space will become a multi-use commercial center in the heart of downtown Bentonville.

In Rogers, commercial building permits totaled $5.154 million in May, down sharply from $12.93 million reported a year ago. The renovations and expansion at Mercy Hospital in Rogers were among some of the largest permits issued by the city last month. Two permits valued at a combined $1.52 million were issued for the 7th floor hospital renovations.

A major expansion is also taking place at Southwest Sales at 3221 N. Second St. in Rogers according to a $1.4 million permit. Bost Human Development is also getting a $1.394 million building facelift while Fish City Grill will soon move into a new restaurant at 2003 W. Bellview Road. That permit was valued at $800,000. The massive Hunt business building located at 5100 JB Hunt Drive got two more permits last month valued at $458,000 for work on the 8th floor.

Springdale issued commercial permits in May valued at a combined $3.847 million, down from $5.424 million a year ago. A permit valued at $703,605 was issued for new 8,000 square foot building for Stone Mill Bakery located at 387 Dakotas Place. The new health clinic by Northwest Health located at 4077 Elm Springs Rd. was valued at $931,751, according to the construction permit issued last month. Ozark’s Guidance Center Foundation is also undergoing an expansion valued at $652,000, according to a permit issued in May.

STEADY RESIDENTIAL
The new single family residential permits issued in May among the region’s four largest cities were flat against last year. Officials in Fayetteville, Springdale, Bentonville and Rogers issued permits to construct 137 new homes in May, the exact number as a year ago. The home permit values rose 1.1% year-over-year to $34.564 million.

Construction activity was mixed around the region. Fayetteville gave builders 34 permits for new homes valued at $9.236 million in May, up compared to 40 permits worth $10.597 million in the year-ago period. The shortage of available lots is one reason why building is tapering in Fayetteville and other parts of the region. As more red dirt is turned in the coming months on new developments from Rausch Coleman Homes, Riverwood Homes and Buffington Homes permits are expected to keep pace with buyer demand.

Bentonville issued 40 permits for new homes valued at $11.458 million in May, down from 43 homes worth $12.689 million a year ago. Rogers bucked the downtown movement in May issuing 41 permits for new homes in that city. The home permits were valued at $7.712 million, compared to 28 permits worth $5.154 million a year ago. In Springdale there were 22 new permits issued compared to 26 a year ago. While the number of homes were less, the total permit values rose 7.2% from the $5.746 million reported a year ago.

In Springdale the homes had an average permit value of $279,909 in May, up from $221,000 a year ago. This was slightly higher than the $271,647 million of the average home permit value in Fayetteville last month. Benton county had a large gap between the average home permit values in May. In Rogers the home permit value was the lowest in the region at $188,097, while in Bentonville the value was $286,450, the highest in the region.

BUILDING PERMIT VALUES (January through May)
Bentonville
2016: $134.185 million
2015: $101.015 million
32.83%

Fayetteville
2016: $189.383 million
2015: $61.147 million
209%

Rogers
2016: $87.313 million
2015: $68.266 million
27.9%

Springdale
2016: $93.754 million
2015: $21.294 million
340%