Commercial Real Estate Market Absorbs Over 1,000,000 Square Feet of Space in Northwest Arkansas

Monday, April 24 at 08:15 AM
Category: Arvest Community News

Multi-family vacancy rates up slightly but remain low.

Arvest Bank today released its Skyline Reports on commercial and multifamily real estate in Northwest Arkansas for the last six months of 2016.

In the commercial real estate market, 1,005,502 square feet of commercial space were absorbed in Northwest Arkansas during the second half of the year, while 541,561 square feet of new space were added, resulting in a net positive absorption of 463,941 square feet. The vacancy rate for all commercial space fell from 12.7 percent in the first half of 2016 to 11.7 percent in the second half. During the first half of 2016, the commercial market experienced net positive absorption of 11,847 square feet.

The retail submarket has seen a slight increase in vacancy rates from 9.2 percent in the first half of 2016 to 9.4 percent in the second half of 2016, while the warehouse submarket has seen a more significant decrease in vacancy rates year-over-year from 11.5 percent in the second half of 2015 to 8.1 percent in the second half of 2016. According to Kathy Deck, lead researcher for the Skyline Report and director of the Center for Business and Economic Research at the University of Arkansas at Fayetteville, this trend is likely a result of the changing shopping preferences of consumers.

“As consumers have increasingly embraced online shopping, it stands to reason that these new shopping preferences will have an impact on different types of commercial real estate with the retail real estate market softening while the warehouse market begins to tighten. I think that is what we are likely witnessing here in Northwest Arkansas,” said Deck.

The office submarket continues to show strength. While 155,933 new square feet were added in the second half of 2016, 271,396 square feet were absorbed – a net positive absorption of 115,463 square feet.

From July 1 to Dec. 31, 2016, there were $137.2 million in commercial building permits issued in Northwest Arkansas, a decrease from the $206.5 million in commercial building permits issued in the first half of the year and a slight increase from the $112.8 million in issued in the last half of 2015.

“Overall, the commercial real estate market can be described as both very active and well-balanced at this time,” Deck continued.

Vacancy rates in multifamily real estate rose slightly from the first half of the year but remain at low levels throughout Northwest Arkansas.  The overall vacancy rate for the Northwest Arkansas multifamily market during the second half of 2016 was 3.2 percent, up from 2.4 percent in the first half of the year. The Skyline Report tracks 336,159 multifamily units in 735 multifamily properties across Northwest Arkansas.

Craig Rivaldo, president with Arvest Bank of Benton County, said about the Skyline results, “We are visiting with a large number of clients who have been very encouraged regarding the real estate development market here in Northwest Arkansas. They have been seeing and hearing what this report indicates – that the market is well balanced, and there are plenty of good opportunities for intelligent commercial and multifamily projects now and in the future.”

Springdale continues to have the lowest vacancy rate in the region, now falling below 1.0 percent to 0.9 percent followed by Bentonville at 1.3 percent, Siloam Springs at 1.8 percent, Rogers at 2.7 percent and Fayetteville at 4.7 percent. Fayetteville’s vacancy rate of 4.7 percent was up from 3.6 percent in the first half of 2016, the result, according to Deck, of a substantial number of “by-the-bed” rental units targeted to college students coming onto the market after the start of the Fall school semester.

Increased demand put upward pressure on lease rates with the average monthly lease price for a multifamily property unit in Northwest Arkansas increasing to $627.04 from $608.88 in the first half of 2016.

“We are running out of adjectives to describe the multifamily market in Northwest Arkansas,” Deck said. “Considering that what is generally considered the normal vacancy rate in multifamily properties is 5 percent, for the overall rate in Northwest Arkansas to be in the 3 percent range and to have stayed under 4 percent since the second half of 2014 is remarkable. With so many new multifamily properties under construction or recently announced, we anticipate that we will likely be in the more normal range of 5 percent within 18- to 24-months. And with so many of the newer properties having a more robust set of amenities, it won’t be surprising if we see higher average rates at that time, even with a higher overall vacancy rate.”

The Arvest Skyline Report is a biannual analysis of the latest commercial, single-family residential and multi-family residential property markets in Benton and Washington counties. The report is sponsored by Arvest Bank and conducted by the Center for Business and Economic Research (CBER) in the Sam. M. Walton College of Business at the University of Arkansas.

In 2004, Arvest Bank entered into a contract with CBER to collect information about the local real estate markets. CBER researchers aggregated and analyzed data from local governments, property managers, visual inspections and the business media to provide a complete picture of the status of property markets in the two counties.

The CBER provides excellence in applied economic and business research to federal, state and local government, as well as to businesses currently operating or those that desire to operate in the state of Arkansas. The center further works to improve the economic opportunities of all Arkansans by conducting policy research in the public interest.

Tags: Arkansas, Arvest Benton County, Arvest Biz, Bentonville, Business Banking, Community Support, Home Loans, Mortgage, Northwest Arkansas, Prairie Grove, Press Release, Rogers, Siloam Springs, Springdale
 

Skyline Report Finds Active, Balanced Residential Real Estate Market in Northwest Arkansas

Friday, March 10 at 07:30 AM
Category: Arvest Community News

Significant increase in absorption matches increase in permits.

FAYETTEVILLE, Ark. – Arvest Bank today released the residential real estate market Skyline Report results for the second half of 2016 in Northwest Arkansas. The report noted an almost equal increase in building permits issued, with a 37.0 percent increase over the same period in 2015, and new homes being occupied showing a 37.6 percent increase.

Significant absorption of new homes led to the lowest level of remaining months of unbuilt lot inventory, 35.1 months, since the inception of the Skyline Report in 2004.

“Given the increase in building permits we’ve seen during the past twelve months, it is quite impressive that the absorption of newly constructed homes has kept pace,” said Kathy Deck, lead researcher for the Skyline Report at the Center for Business and Economic Research at the Sam M. Walton College of Business, University of Arkansas at Fayetteville. “Overall the residential real estate market is as hot as we’ve seen it since the recession. Moving forward we will be paying attention to two issues that could slow down the pace of absorption – the forecasts for slower job growth in the area and the price of lots that are remaining, as this could limit builders’ ability to build the price of homes that are selling.”

There were 1,561 building permits issued in Benton and Washington counties in the first six months of 2016 and 1,574 new homes sold in the last six months of the year indicating good balance between the number of new homes being constructed and the number of new homes being purchased. In the second half of the year there were 1,638 permits issued, a 37.0 percent increase from the 1,196 permits issued during the same period of 2015.

The average sale price of homes sold during the period increased 7.4 percent from the same period in 2015 in Benton County, from $206,575 to $221,944. In Washington County, it increased 6.7 percent, from $189,093 to $201,804.

Centerton, in Benton County, has emerged as a hotbed of building activity. The number of building permits issued in Centerton from July through December was 208 – a 49.9 percent increase year-over-year and the third highest total of all cities in Northwest Arkansas. On the same note, there were 288 houses sold in the city during the period, a 46.9 percent increase over the same period in 2015.

“It is good to see the residential market being so active while also remaining well-balanced in terms of supply,” said Deck. “The market was equally hot prior to the recession, but at the end of 2006 there were more than 2,500 complete but unoccupied houses on the market and now there are fewer than 300. We hope that this balance is sustainable moving forward.”

“As Northwest Arkansas has continued to experience strong growth, we at Arvest have had the opportunity to help thousands of customers get into homes,” said Craig Shy, executive vice president and loan manager for Arvest Bank in Fayetteville. “During the next several years, expectations are that interest rates will rise slightly, but we keep reminding customers that even if rates increase slightly, they will still be very, very low from a historical perspective. The best news is that, in a balanced market like this, it is generally good for both buyers and sellers, as is evidenced by the large number of both new and existing homes that sold during the last half of 2016.”

The total number of new and existing homes sold in the last half of 2016 was 4,772 – a 12.1 percent increase from the 4,257 sold in the last half of 2015.

The Arvest Skyline Report is a biannual analysis of the latest commercial, single-family residential and multi-family residential property markets in Benton and Washington counties. The report is sponsored by Arvest Bank and conducted by the Center for Business and Economic Research (CBER) in the Sam. M. Walton College of Business at the University of Arkansas.

In 2004, Arvest Bank entered into a contract with CBER to collect information about the local real estate markets. CBER researchers aggregated and analyzed data from local governments, property managers, visual inspections and the business media to provide a complete picture of the status of property markets in the two counties.

The CBER provides excellence in applied economic and business research to federal, state and local government, as well as to businesses currently operating or those that desire to operate in the state of Arkansas. The center further works to improve the economic opportunities of all Arkansans by conducting policy research in the public interest.

Tags: Arkansas, Arvest Benton County, Bentonville, Fayetteville, Northwest Arkansas, Prairie Grove, Press Release, Siloam Springs, Skyline, Springdale
 

Branch Hours Changing in Northwest Arkansas, Eastern Oklahoma and Southwest Missouri

Friday, October 14 at 07:45 AM
Category: Arvest Community News

Starting Monday, Nov. 7, 2016, some Arvest Bank branches in the Northwest Arkansas, Eastern Oklahoma and Southwest Missouri areas will have revised hours. 

Branches with revised hours include:

Arkansas

Bella Vista Town Center (403 Town Center)
  • Lobby Hours: 8-5 (Monday-Friday) and CLOSED (Saturday)
  • Drive-thru Hours: 8-5 (Monday-Friday) and CLOSED (Saturday)
Bella Vista Sugar Creek (70 Sugar Creek Center)
  • Lobby Hours: 8-5 (Monday-Thursday), 8-6 (Friday) and 9-1 (Saturday)
  • Drive-thru Hours: 7:30-6 (Monday-Friday) and 9-1 (Saturday)
Bentonville 71 Branch (405 N. Walton Blvd.)
  • Lobby Hours: 8-5 (Monday-Thursday), 8-6 (Friday) and 9-1 (Saturday)
  • Drive-thru Hours: 7:30-6 (Monday-Friday) and 9-1 (Saturday)
Bentonville Financial Center (405 S. Walton Blvd.)
  • Lobby Hours: 8-5 (Monday-Thursday), 8-6 (Friday) and CLOSED (Saturday)
Bentonville College Branch (3514 S.E. 14th St.)
  • Lobby Hours: 8-5 (Monday-Thursday), 8-6 (Friday) and 9-1 (Saturday)
  • Drive-thru Hours: 7:30-6 (Monday-Friday) and 9-1 (Saturday)
Berryville (401 W. Trimble)
  • Lobby Hours: 8-5 (Monday-Friday) and CLOSED (Saturday)
  • Drive-thru Hours: 8-5 (Monday-Thursday), 8-6 (Friday) and 9-noon (Saturday)
Centerton (770 W. Centerton)
  • Lobby Hours: 8-5 (Monday-Thursday), 8-6 (Friday) and 9-1 (Saturday)
  • Drive-thru Hours: 7:30-6 (Monday-Friday) and 9-1 (Saturday)
Elkins (2045 N. Center)
  • Lobby Hours: 8-6 (Monday-Friday) and 9-noon (Saturday)
  • Drive-thru Hours: 7:30-6 (Monday-Friday) and 9-noon (Saturday)
Eureka Springs (151 E. Van Buren)
  • Lobby Hours: 8-5 (Monday-Friday) and CLOSED (Saturday)
  • Drive-thru Hours: 8-6 (Monday-Friday) and 8-noon (Saturday)
Farmington (110 E. Main)
  • Lobby Hours: 8-5 (Monday-Friday) and 9-noon (Saturday) 
  • Drive-thru Hours: 7:30-7* (Monday-Friday) and 9-noon (Saturday)
Fayetteville Downtown (75 East Ave.)
  • Lobby Hours: 8-5 (Monday-Friday) and CLOSED (Saturday)
  • *The drive-thru at this location will be permanently closed, effective Nov. 18, 2016
Fayetteville (1170 N. Salem Rd., 1627 E. Joyce St., 2389 N. College Ave.)
  • Lobby Hours: 8-6 (Monday-Friday) and 9-noon (Saturday)
  • Drive-thru Hours: 7-7 (Monday-Friday) and 9-noon (Saturday)
Fayetteville (2761 E. Mission Blvd., 3045 Martin Luther King Blvd.)
  • Lobby Hours: 8-6 (Monday-Friday) and 9-noon (Saturday)
  • Drive-thru Hours: 7:30-6 (Monday-Friday) and 9-noon (Saturday)
Fayetteville (1113 N. Garland)
  • Lobby Hours: 8:30-5:30 (Monday-Friday) and CLOSED (Saturday)
  • Drive-thru Hours: 8:30-5:30 (Monday-Friday) and CLOSED (Saturday)
Gravette (506 First Ave.)
  • Lobby Hours: 8-5 (Monday-Thursday), 8-6 (Friday) and CLOSED (Saturday)
  • Drive-thru Hours: 8-5 (Monday-Thursday), 8-6 (Friday) and 8:30-noon (Saturday)
Lincoln (317 E. Pridemore)
  • Lobby Hours: 8-5 (Monday-Friday) and CLOSED (Saturday)
  • Drive-thru Hours: 7:30-6 (Monday-Friday) and 9-noon (Saturday)
Lowell (103 S. Bloomington)
  • Lobby Hours: 8-5 (Monday-Thursday), 8-6 (Friday) and 9-1 (Saturday)
  • Drive-thru Hours: 7-7 (Monday-Friday) and 9-1 (Saturday)
Pea Ridge (132 N. Curtis)
  • Lobby Hours: 8-5 (Monday-Thursday), 8-6 (Friday) and CLOSED (Saturday)
  • Drive-thru Hours: 7:30-6 (Monday-Friday) and 8-noon (Saturday)
Prairie Grove (102 E. Buchanan)
  • Lobby Hours: 8-5 (Monday-Friday) and CLOSED (Saturday)
  • Drive-thru Hours: 7:30-6 (Monday-Friday) and 9-noon (Saturday)
Rogers (1801 W. Walnut)
  • Lobby Hours: 8-5 (Monday-Thursday), 8-6 (Friday) and 9-1 (Saturday)
  • Drive-thru Hours: 7-7 (Monday-Friday) and 9-1 (Saturday)
Rogers (2200 W. Pleasant Grove Rd., 4302 W. Olive, 701 W. New Hope Rd.)
  • Lobby Hours: 8-5 (Monday-Thursday), 8-6 (Friday) and 9-1 (Saturday)
  • Drive-thru Hours: 7:30-6 (Monday-Friday) and 9-1 (Saturday)
Rogers (5201 Village Parkway)
  • Lobby Hours: 8-5 (Monday-Thursday), 8-6 (Friday) and CLOSED (Saturday)
  • Drive-thru Hours: 7:30-6 (Monday-Friday) and 9-1 (Saturday)
Rogers (201 W. Walnut)
  • Lobby Hours: 8-5 (Monday-Friday) and CLOSED (Saturday)
  • Drive-thru Hours: 7:30-6 (Monday-Friday) and CLOSED (Saturday)
Siloam Springs Main (1645 West Hwy. 412)
  • Lobby Hours: 8-5 (Monday-Friday) and CLOSED (Saturday)
  • Drive-thru Hours: 8-6 (Monday-Friday) and 9-1 (Saturday)
Siloam Springs Downtown (109 E. University)
  • Lobby Hours: 9-5 (Monday-Friday) and CLOSED (Saturday)
Siloam Springs East (2730 Hwy. 412 West)
  • Lobby Hours: 8-6 (Monday-Friday) and 9-1 (Saturday)
  • Drive-thru Hours: 7-7 (Monday-Friday) and 9-1 (Saturday)
West Fork (15 N. Centennial Ave.)
  • Lobby Hours: 8-5 (Monday-Friday) and CLOSED (Saturday)
  • Drive-thru Hours: 7:30-6 (Monday-Friday) and 9-noon (Saturday)
Missouri

Anderson (607 Hwy. 71 N.)
  • Lobby Hours: 8-5 (Monday-Friday) and CLOSED (Saturday)
  • Drive-thru Hours: 8-5 (Monday-Friday) and 9-noon (Saturday)
Cassville (503 Main St.)
  • Lobby Hours: 8-5 (Monday-Thursday), 8-6 (Friday) and 8-noon (Saturday)
  • Drive-thru Hours: 8-6 (Monday-Friday) and 8-noon (Saturday)
Noel (202 W. Main)
  • Lobby Hours: 8-5 (Monday-Friday) and CLOSED (Saturday)
  • Drive-thru Hours: 8-5 (Monday-Friday) and 9-noon (Saturday)
Oklahoma

Grove (1818 S. Main)
  • Lobby Hours: 8-5 (Monday-Friday) and 9-1 (Saturday)
  • Drive-thru Hours: 7:30-5:30 (Monday-Friday) and 9-1 (Saturday)
Jay (338 S. 5th)
  • Lobby Hours: 8-5 (Monday-Friday) and CLOSED (Saturday)
  • Drive-thru Hours: 8-5 (Monday-Friday) and CLOSED (Saturday)
Stilwell (514 W. Locust)
  • Lobby Hours: 8-5 (Monday-Friday) and CLOSED (Saturday)
  • Drive-thru Hours: 8-5 (Monday-Thursday), 8-5:30 (Friday) and 9-noon (Saturday)
If branches are NOT listed, their hours will NOT be changing on Nov. 7, 2016. Several branches in the area will still have extended 7 a.m. – 7 p.m. banking hours. 
 
For your convenience you can bank 24 hours a day, 7 days a week using:

*Farmington drive-thru hours updated by Blog Admin 10/14/16.

Tags: Arkansas, Arvest Benton County, Bentonville, Fayetteville, Hours, Missouri, Prairie Grove, Rogers, Siloam Springs, Springdale
 

Strike Out Hunger at Arvest Ballpark in Northwest Arkansas

Friday, April 08 at 07:50 AM
Category: Arvest Community News

Arvest Bank and the Northwest Arkansas Naturals* invite you to “Step Up To The Plate” before the Naturals’ home game against the Frisco Roughriders* on April 8, 2016. 

Before the game, which begins at 7:05 p.m., Arvest will be accepting nonperishable food and monetary donations for 1 Million Meals at a table outside the main gate. 1 Million Meals is an Arvest Bank initiative to feed our neighbors in need and raise awareness about food insecurity.

Naturals game visitors will be able to take their photo at our themed “Selfie Station” and generally enjoy themselves while helping Arvest Bank fight hunger in Northwest Arkansas. All those who donate will receive a voucher for free admittance to the June 16 Northwest Arkansas Naturals game this season. 

Arvest is conducting its annual 1 Million Meals initiative in the spring this year rather than its traditional fall timeframe due largely to the fact food banks report an increased need for food items in the summer, when many children do not have the benefit of eating meals at the schools they attend. 

Please “Step Up To The Plate” and strike out hunger!

Links marked with * go to a third-party site not operated or endorsed by Arvest Bank, an FDIC-insured institution.

Tags: 1 Million Meals, Arkansas, Arvest Benton County, Charitable Giving, Community Support, Fayetteville, Prairie Grove, Rogers, Siloam Springs, Springdale
 

Multifamily Vacancy Rates Rebound Slightly; Strong Absorption In Commercial

Tuesday, March 15 at 11:40 AM
Category: Arvest Community News

Arvest Bank releases second half of 2015 Skyline Report results.

SPRINGDALE, Ark. – Arvest Bank today released its Skyline Reports on commercial and multifamily real estate in Northwest Arkansas for the last six months of 2015.

Vacancy rates in the second half of 2015 rose in Northwest Arkansas from previous record lows as new units were completed and entered the market, according to Kathy Deck, lead researcher for the Skyline Report and director of the Center for Business and Economic Research. Even with a slight increase however, vacancies were still lower than they were at the same time last year. Vacancy rates for Northwest Arkansas overall were 3.0 percent in the second half of 2015, down from the 3.7 percent reported in the same period of 2014 and up from the 2.3 percent reported in the first six months of 2015.

Springdale reported the lowest vacancy rate for multifamily real estate with 1.0 percent in the second half of 2015, up from 0.9 percent in the first half of 2015. Bentonville and Siloam Springs reported vacancy rates of 2.0 percent and 2.7 percent, respectively, while Fayetteville’s rate was 3.6 percent. Rogers reported the highest vacancy rate at 4.8 percent. At the end of the first half of 2015, Bentonville had a vacancy rate of 0.4 percent, Siloam Springs had a vacancy rate of 2.4 percent, Fayetteville had 3.6 percent and Rogers had 0.9 percent. 

“Although the amount of construction in the multifamily sector is high, the extremely low vacancy rates seen throughout Northwest Arkansas are sending strong signals to developers that there is demand for additional apartments. The increase in average prices is partly due to two factors: that the new units are on the higher end of the scale and that the complexes are raising leases as they have tight vacancy rates,” Deck said. “Continued strong job growth indicates further population increases in Northwest Arkansas and more multifamily units are needed for a segment of that workforce.”

In Bentonville, more than 570 new rental units have been announced or are under construction. In Fayetteville, more than 4,400 new rental units have been announced.

Increased demand has had an influence on the cost of rental space. The average monthly lease price for a multifamily property unit in Northwest Arkansas increased to $601.43 in the second half of 2015 from $581.72 in the first half of 2015. The average monthly lease rate per square foot was $0.71, up two cents from the $0.69 reported in June 2015.

The second half of 2015 saw robust new construction in the commercial real estate market in Benton and Washington counties, but the absorption rate was even stronger, Deck said. There were 836,033 square feet of commercial space that became occupied, while just 550,331 square feet of new space was added to the market in the last six months of 2015. 

Commercial construction will continue as $112.8 million of commercial building permits were issued between July 1 and December 31, 2015. In comparison, there were $153.4 million in permits were issued in the second half of 2014 and $75.2 million issued in the first half of 2015.

The overall vacancy rate for commercial real estate in Northwest Arkansas was 12.4 percent, up from the 12.0 percent reported in the first half of 2015.

The largest gain in absorption was in the warehouse submarket with 131,082 square feet. The retail/warehouse submarket had positive net absorption of 41,411 square feet and the office/warehouse submarket had positive net absorption of 24,856 square feet in the Northwest Arkansas market. The retail submarket had positive net absorption of 23,257 square feet with 82,715 new square footage added and 105,972 square feet absorbed. The office/retail submarket and the office submarket both showed negative net absorption of 44,692 square feet and 38,992 square feet, respectively, in the second half of 2015. 

“The commercial real estate market is beginning to reflect the overall optimism we have been seeing in the economy in Northwest Arkansas,” said Tammy Engle, senior vice president and loan manager with Arvest Bank in Siloam Springs. “At the same time, we are pleased to see that optimism tempered by careful consideration of the needs of the market. Everyone is letting the experience of the last 10 years wisely govern their decision-making processes.”

The Arvest Skyline Report is a biannual analysis of the latest commercial, single-family residential and multifamily residential property markets in Benton and Washington counties. The report is sponsored by Arvest Bank and conducted by the Center for Business and Economic Research in the Sam. M. Walton College of Business at the University of Arkansas (CBER).

In 2004, Arvest Bank entered into a contract with CBER to collect information about the local real estate markets. CBER researchers aggregated and analyzed data from local governments, property managers, visual inspections and the business media to provide a complete picture of the status of property markets in the two counties.

The Center for Business and Economic Research at the Sam M. Walton College of Business provides excellence in applied economic and business research to federal, state and local government, as well as to businesses currently operating or those that desire to operate in the state of Arkansas. The center further works to improve the economic opportunities of all Arkansans by conducting policy research in the public interest. 

Tags: Arkansas, Arvest Benton County, Bentonville, Fayetteville, Prairie Grove, Press Release, Rogers, Siloam Springs, Skyline, Springdale

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