Skyline’s 2Q Summary Shows Oversupply

There’s an oversupply of housing in Northwest Arkansas, but available commercial space is filling up, according to the “Skyline Report.”

Bentonville-based Arvest Bank released its second-quarter summary of the “Skyline Report” on July 27. The bank commissioned the Center for Business and Economic Research at the University of Arkansas’ Walton College of Business to produce the report.

The summary included market data on single-family residential, commercial and multifamily real estate in Benton and Washington counties.

The most significant finding in the data is that there may be a glut of single-family homes in Northwest Arkansas — specifically in Benton County.

The report stated there were 2,431 complete but not occupied homes in both counties, up 17 percent from the first quarter. But 1,877 of those homes, or about 72 percent, are in Benton County.

On the commercial front, there was positive net absorption of available space, the report said. More than 159,123 SF of office space became available during the second quarter, but more than 59,344 SF were absorbed by the market.

The vacancy rate for office space was 14.8 percent, down from 17.8 percent a year earlier. The vacancy rate for retail space was 9.3 percent in the second quarter, higher than the 8.7 percent rate a year earlier.

Changes in the multifamily sector were moderate, the report said. Vacancy rates were at 7.5 percent in the second quarter, up slightly from 6.4 percent in the first quarter.