Diverse NEA economy drives commercial growth

We are very fortunate to live and work in Northeast Arkansas. The commercial construction landscape is enjoying some of the strongest growth I’ve ever seen, with numerous new construction projects and commercial real estate sales needed to accommodate the booming business activity in our area.

Jonesboro and Paragould were once isolated from each other by acres of undeveloped land. Now, they are nearly connected. In 10 years, even longtime residents will have a hard time telling where one stops and the other starts. The same surge we saw with the Hilltop development on the north side of Jonesboro is now happening south of town at Southern Hills. It’s safe to say that if there’s an empty field in the city limits, it’s only a matter of time before a new neighborhood or new business is built on it.

Lenders are blessed to be so busy, and the business and civic leaders who came before us deserve our gratitude. They developed a diverse regional economy that drives the success we see today. Our economy in Northeast Arkansas includes many longtime manufacturing businesses like Butterball, Frito Lay, Nestle and Post on the east side of Jonesboro. Our healthcare sector consists of two major hospital systems, St. Bernard’s and NEA Baptist, as well as a wide network of medical offices and physician clinics that serve patients beyond Northeast Arkansas. 

The importance of Arkansas State University to our economy cannot be overstated. This fall, ASU celebrated record student enrollment, attracting students who support our growth by shopping at our local retail businesses, eating at local restaurants and living in one of our many multifamily housing developments. Not only does ASU recruit students well, but it also does an excellent job of retaining them. Their graduates are well-prepared for local jobs, and many will continue to drive this growth for years to come as business owners and homeowners.  

Our city and chamber leaders, along with commercial real estate companies like Halsey and Haag Brown, do an outstanding job of bringing new businesses and good jobs to Jonesboro. They also understand the need for new amenities like the Ridge Athletics Center to support tourism, efforts to revitalize existing areas like downtown Jonesboro and the Mall at Turtle Creek, and projects that address infrastructure, interstate access, traffic congestion and other issues that, if neglected, could compromise our quality of life today and jeopardize our potential for future growth and success.

Northeast Arkansas’ growth means residents have many options when it comes to banking. Once again, the breadth of our economy offers a big advantage. Banks with strong assets and a well-diversified portfolio can offer competitive loan products, which is critical because, at the end of the day, customers are still rate sensitive, and saving money is saving money. 

Offering competitive products and rates is one of the two variables that set banks apart. The other is customer service. Word-of-mouth customer referrals are crucial for lenders looking for new opportunities, and those come from customers who develop relationships with lenders who understand banking doesn’t stop at 5 p.m. 

Just like the days when our city’s commercial activity was confined to one area of town, the days of uncollateralized loans approved with a handshake are over. Commercial loans over a certain amount require a more extensive underwriting process and extra due diligence. Lenders today must alleviate their customers’ potential frustration regarding new regulatory-required standards by helping them understand the new timelines, as well as the value of a long-term relationship with a lender grateful to earn their trust and business.  

Jonesboro is a special place that never ceases to amaze me. Thanks to our economic diversity, there’s nothing we don’t have. But Northeast Arkansas’ greatest asset will always be our people and the sense of community they continue to build.

Editor’s note: Zach Fahlberg is a commercial banker with Arvest Bank in Northeast Arkansas. The opinions expressed are those of the author.