Report: Offices and commercial transactions set to rebound in the LR commercial real estate market

Arkansas commercial real estate company Colliers Arkansas said the industrial sector continues to be the strength of the state’s largest metro, but is not giving up on the retail and office market. Transactions in these regions showed an uptick in central Arkansas during the second quarter, signaling a potential comeback.

Colliers’ latest quarterly report showed a slight increase in vacancy rates, but rental rates remained stable.

“The Little Rock office market is now in the first wave of post-COVID-19 renewals. Activity shows that some businesses are retaining the hybrid work environment and a few smaller businesses are expanding into more leased space,” Colliers said in the report. “Owner-occupied offices were also a hot commodity this quarter. The best examples are the sale of two buildings in Westlake Corporate Park and two downtown skyscrapers (the Bank of America Building and the Regions Bank Tower).

The Colliers researchers said the largest leases to be finalized from April to June were all in the industrial sector.

“Industrial space continues to fill up and is now starting to be hard to find,” the report said. “As a result, several speculative buildings are in play, most of them located in the East Little Rock and North Little Rock submarkets.

The report says the retail sector is strengthening — especially restaurants — with no signs of slowing anytime soon. Two shopping centers in Little Rock (Riverdale Center and Breckenridge Village) are in the planning stages of redevelopment, with food service announced as the primary focus of tenants.

“Redevelopments such as these signal renewed interest in retail and should contribute to higher vacancy rates at both malls,” the report said.

Colliers has offices in Arkansas small stone and roger. For a more detailed analysis of each submarket within the Central Arkansas commercial real estate market, Click here.

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