Northwest Arkansas building permit values up almost 48% in 2014

It was probably a rare day in 2014 if someone employed in the Northwest Arkansas building sector was out of work. The region’s four largest cities issued new construction permits valued at $773 million last year, up an impressive 47.8% compared to 2013.

In addition to surpassing the residential and commercial permits of $523 million in 2013, the activity was also above the $605 million in permit values recorded in 2012 in Bentonville, Fayetteville, Rogers and Springdale.

While residential building kept a steady pace in 2014, the rise in values is primarily the result of commercial development in Benton and Washington counties. Three of the four cities reported an increase in new commercial and residential building permits last year. Springdale bucked that trend because of the $15.4 million Walmart Supercenter construction that took place in 2013.

Commercial building permits issued by the four cities totaled $370 million last year. The city of Bentonville comprised nearly 42% of that total behind a $43.8 million multifamily expansion at Lindsey Management’s Linx at Rainbow Curve complex, and the $9.19 million Amazeum children’s museum.

BENTON COUNTY
Wal-Mart’s expansion also had a hand in Bentonville’s big year with three new Neighborhood Market stores, Walmart To Go and the new Walmart Drive facility all pushed through the city in 2014. There was also large warehouse space additions and several new retail office centers built along South Walton Boulevard last year. The new Midtown Market shopping center and the Thrive multifamily complex each located downtown.

Commercial permit values in Bentonville totaled $154.5 million last year, up 474% from the year-ago period. Permit values also outpaced the $42.92 million recorded in 2012.

Rogers officials issued new commercial permits which included multi-family housing worth $92.245 million last year, a 198% improvement from 2013. The $11 million Walmart AMP was one of the larger public venues completed in 2014. Construction continues on a $30 million, 10-story office building by Hunt Ventures near the outdoor amphitheater.

The Sterling group recently broke ground and began construction on a $14 million multifamily complex under construction in the heart of the Pinnacle Hills area of western Rogers.

“The 200 units are underway now with a leasing center, maintenance building and trash compactor. The leasing center contains a cyber café, media room, swimming pool, pool cabana with grill station, outdoor fireplace with TV and fitness center. We broke ground in November and the leasing center will be open in late June with the first building available in July. The project will be completed in December of this year,” said Darren Fulford, spokesman for Sterling Group.

In December, the city issued a permit for a $5.1 million Walmart Neighborhood Market and gas/convenience station at 807 W. Walnut near downtown Rogers. Mercy Health also moved into downtown Rogers last year in a new facility owned by Mathias Properties.

WASHINGTON COUNTY
In Washington County, commercial permits in Fayetteville last year totaled $239 million, up 41% compared to 2013. Of that, $61 million was for multifamily (apartment) construction. Some of the biggest commercial news in the region was the Whole Foods announcement to locate to Fayetteville. This $10 million project will anchor a shopping center along North College Avenue with close access to the new Fayetteville Flyover and the Northwest Arkansas Mall and retail district.

Last month the city of Fayetteville issued permits worth $12 million, half of which is on the new parking deck downtown. A new Discount Tire center is being built at 3875 N. Shiloh Drive. Separate dentist and doctor’s offices are also under construction with  combined permit values of $4.9 million.

Jeremy Pate, director of development at the city of Fayetteville, said 2014 was an active year on the commercial front and he expects more of the same in 2015. Pate said the highly anticipated Whataburger chain came back to the city last month for more revisions and it should seek permits in the near future. He said Washington Regional Hospital also had a clinic addition of 100,000 square feet to its women’s clinic approved by the city. No permits have yet been issued.

The city of Springdale issued 16 new commercial permits in 2014 with a value of $19.616 million. Commercial permit projects increased from 12 which were valued at $28.474 million in the prior-year.

Wal-Mart Stores obtained two permits totaling $4.62 million last month for its new Neighborhood Market and the fueling and convenience station located at Don Tyson Parkway and Interstate 49. Outside of a private warehouse project ($5.03 million)approved in May and a $2.4 million data center project at Tyson Foods, none of the other permits issued were valued at more than $2 million in 2014.

STABLE RESIDENTIAL
The residential building markets across Northwest Arkansas sought to replace new home inventory amid steady demand from buyers in 2014. The four largest cities issued 1,537 new home permits in 2014, up from 1,460 home starts in 2013. The combined new home permit values totaled $387 million, down 2% from total permit values in 2013.

The residential permit value decline is likely related to more duplexes and smaller footprint homes that were built. Median new home sales prices were fairly stable at $222,498 last year. The sales price was down about 1% across the two-county region, according to MountData.com.

Local market data shows that new home prices rose 3.8% in Bentonville to $286,000, while Rogers saw the steepest price increase of 8.6% to $271,400.

Residential home permits issued by Bentonville totaled $142.448 million, up 6% from a year ago. In Rogers, homebuilders started 349 homes with a value of $67.33 million last year. This compared to 420 new residential permits worth $80.67 million in the prior year. 

The residential markets were mixed year-over-year in Washington County. Fayetteville reported 482 new residential permits that were worth $119 million, down 4% from the prior-year values

In Springdale, the city issued 224 permits with a value of $57.87 million last year, up compared to 182 permits worth $50.32 million in 2013. Springdale’s residential building pace rose 23% in permits issued, while values increased 15% from 2013. 

BUILDING PERMIT VALUES 
Bentonville
2014: $296.954 million
2013: $176.78 million 
2012: $171.48 million
2011: $131.1 million

Fayetteville
2014: $239.37 million
2013: $157.85 million
2012: $286.13 million
2011: $106.98 million

Rogers
2014: $159.57 million
2013: $109.61 million
2012: $87.87 million
2011: $58.11 million

Springdale
2014: $77.487 million
2013: $78.81 million
2012: $60.16 million
2011: $51.64 million