Report: Tornado aftermath dominates Little Rock metro Q2 commercial activity

Commercial real estate firm Colliers Arkansas said the aftermath of a March 31 tornado has dominated much of the second-quarter commercial activity in the state’s largest metro.

Storms swept across the state that day, with tornadoes inflicting heavy damage in Little Rock, North Little Rock, Sherwood and Wynne.

Colliers Arkansas’ latest quarterly report said that the aftermath further tightened central Arkansas’ multifamily market due to several complexes that were damaged.

The report also revealed that office market trends saw aggressive tenant improvement packages, enabling some buildings to maintain high occupancy and extend existing tenants.

Colliers analysts said the office market vacancy stood at 10.8% in the second quarter, down from 13.4% in the third quarter of 2022.

“Even downtown got in on the action with significant leases and renewals in both the Simmons tower and the Regions building,” the report said.

Retail vacancy rates continue to shrink, from 13.7% in the third quarter of 2022 to 6.7% in the second quarter of this year.

“Despite ongoing challenges posed by the COVID-19 pandemic, the market has demonstrated a positive outlook with notable developments, new restaurant concepts, and steady absorption trends,” Colliers analysts report.

Colliers has Arkansas offices in Little Rock and Rogers. For a more detailed analysis of each submarket in central Arkansas’ commercial real estate market, click here for a PDF.