NWA Office Market is Moving in a Different Way

February 24, 2021


NWA Office Market is Moving in a Different Way

NWA Daily

In a recent report from commercial real estate firm CBRE Group Inc., NWA's office leasing market has slowed, particularly for second-generation buildings. However, newly constructed office buildings in the region are seeing very few vacancy issues.

  • “In Washington County, this can be attributed to occupiers requiring larger footprints or more efficient footprints. In Benton County, we attribute this to occupiers desiring newly constructed buildings with increased available amenities..." said David Erstine, VP at CBRE. Talk Business & Politics
  • In an overview of the market in 2020, CBRE reported a 12.26 percent vacancy rate among nearly 50 buildings in Bentonville, Fayetteville and Rogers.
    • Bentonville: Near the end of 2020, Bentonville’s vacancy rate remained fairly steady, slightly increasing from 17.11% in 2019 to 17.78%. The city has a total of 13 Class A buildings, adding up to nearly 836,000 square feet.
    • Fayetteville: Last year the city saw a negative net absorption which increased from 3.23% in 2019 to 7.21% at the end of 2020. The city has 12 Class A buildings totaling about 583,000 square feet.
    • Rogers: At the end of 2019, the vacancy rate jumped from 7.55% to 11.06% at the end of 2020. The city has 21 Class A buildings totaling 1.37 million square feet.
  • Springdale is not included in the report because “historically there has been little to no sizable [Class A] office demand or supply for the Springdale market," said Erstine. Talk Business & Politics

12.26%: vacancy rate of Class A office buildings across NWA

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