Market Ready for Market-Rate Units
by July 20, 2015 12:00 am 80 views
The boom in the construction of market-rate apartments in Northwest Arkansas appears to be in full swing, according to a recent survey of the market released by Brian Donahue, an associate with commercial real estate brokerage firm CBRE.
All of the construction — 2,009 units in total — is taking place, or will take place, in Bentonville, Rogers and Fayetteville.
“It’s a lot compared to what we’ve seen in the last five years,” Donahue said. “We’re finally seeing market-rate construction pick back up.”
In his report, Donahue identifies 599 Bentonville units coming on line this year and another 170 coming on line in 2016. An additional 216 units near the Bentonville Municipal Airport are in the approval process.
In Rogers, 200 units are expected to open this year near the Pinnacle Hills Promenade. And in Fayetteville, 824 units are supposed to open next year.
Fayetteville is also ground zero for the student housing market, and through 2016, Donahue reports that as many as 813 units with 2,090 bedrooms will open.
Donahue attributes the market-rate growth to an overall increase in the region’s population and a consistently high occupancy rate. Together, those elements create a construction boom.
“I’ve been saying it’s going to happen for a while now,” he said.