Fort Smith metro building permit values up 4.1% through November

Construction activity in the Fort Smith metro area slowed for the second consecutive month. Fort Smith, Van Buren and Greenwood had combined building permit values of $14.672 million in November, down 54.4% from the $32.153 million reported in November 2022.

The November activity also was down 39.5% from the $24.248 million value of permits issued in the three cities in October. October’s total permit value was down 60% from the $60.865 million value of building permits issued in the region in October 2022.

But even with two months of declining building permits in the area, the three largest cities in the area have reported $463.875 million through November, up 4.1% compared to the $445.622 million reported in the first 11 months of 2023.

Fort Smith issued 197 permits in November with a combined value of $12.957 million, down 34% from the $19.63 million value of 276 permits issued last month and 35% from the $19.982 million value of 397 permits issued in November 2022. Year-to-date, Fort Smith has reported $419.448 million in building projects, up 25.7% from the $333.639 million reported through the first 11 months of 2022.

There were eight permits issued for new residential construction in the month with a value of $1.686 million, down 66.2% from October and down 55.6% from the $3.798 million value of nine new residential construction permits issued in November 2022.

There was only one permit issued for new commercial construction in November for a new $600,000 new warehouse and office for Fusion HVAC at 4600 Industrial Drive in Fort Smith, owned by Eric Ryan. New commercial construction is down 86.4% from the $4.407 million value of five new commercial projects permitted last month and 64% from the $1.679 value of one new commercial construction project permitted in November of 2022.

However, Owens Corning received a permit for $1.916 million for “other” commercial construction at 5520 Planters Road. This makes the fifth building permit the company has received in the past two years. In June, Owens Corning received a permit issued by the city of Fort Smith valued at $47.7 million. In February 2021, the company began to build a new 550,000-square-foot manufacturing facility, adjacent to its existing plant on Planters Road. The estimated $115 million project is expected to add five jobs with an approximate annual salary of $85,000 per year.

VAN BUREN, GREENWOOD NUMBERS
Van Buren, the region’s second largest city, had 89 projects permitted in November with a combined value of $1.054 million, down 66% from the $3.101 million value of 137 projects in October and 90% from the $11.017 million value of 64 projects permitted in November 2022.

On the residential side, the city had six projects permitted with a value of $603,500, down 75% from the $2.446 million value of 14 projects permitted in October but up 108% from the $290,000 in residential projects permitted in November 2022.

On the commercial side, Van Buren had one project – a $135,000 new construction for Guzzle Soda at 1131 Pointer Trail by Eric Williams. According to its website, Guzzle Soda was created in hopes of building a place “where people could go to be served a smile, a quick treat and a soda that actually satisfied your thirst.” There are three locations in Utah. Van Buren’s Guzzle is listed as coming soon.

Commercial construction in November was down 74.8% from the $535,000 value of four projects permitted in October and down 98.7% from the $10.565 million value of three commercial projects permitted in November 2022. In the first 11 months of the year, Van Buren has recorded $32.732 million in permitted activity, down 66.4% from the $97.407 million reported through November 2022, a year in which Van Buren experienced significant building growth thanks in large part to a significant expansion at Simmons Foods.

Greenwood issued 14 permits in November with a combined value of $660,873, down 59.1% from the $1.617 million value of eight permits issued in October and 42.7% from the $1.154 million value of 11 permits issued in November 2022. From January through November, Greenwood has had $15.8 million in building projects permitted, up 9.6% from the $14.417 million in the first 11 months of last year.

The region ended 2022 with $480.376 million in permitted building activity, a 39.9% increase over the $343.289 million in 2021. The Fort Smith metro has seen continuous growth over the  past several years, but no recent year has performed as well in building activity as 2022 with all three of the larger cities in the region seeing an increase in building numbers from 2021.

REGIONAL BUILDING ACTIVITY RECAP
Combined total for the three cities
2022: $480.376 million
2021: $343.289 million
2020: $265.975 million
2019: $241.741 million
2018: $231.78 million
2017: $210.844 million
2016: $211.345 million
2015: $218.899 million
2014: $198.983 million
2013: $202.389 million
2012: $154.64 million