This story is from our partner Talk Business and Politics.
The office vacancy rate in northwest Arkansas fell to a 15-year low in the first quarter of 2025 as the region continues to outperform national trends across the commercial real estate sector, according to a new real estate report.
On April 24, Cushman & Wakefield/Sage Partners released the first quarter of 2025 Market Report showing the office vacancy rate fell to 4.4%, the lowest level since 2010 and well below the national average of 13.9% and the 10-year area average of 10%.
Over the past 12 months, the area office market had net absorption of 1.5 million square feet as national trends continued to reflect negative absorption levels.
“Office demand in northwest Arkansas is remarkably robust, even as many markets across the country face oversupply,” said Marshall Saviers, CEO and principal at Cushman & Wakefield/Sage Partners. “The region’s strong fundamentals, the return to office trends, and business growth continue to drive this trend.”
According to the report, the region’s retail and industrial sectors are also strong. Retail vacancy fell to a low of 3.25% in the first quarter, while March sales tax collections rose 13.3% from the same month last year. Bentonville led with an 80% increase, reporting record monthly revenue. Industrial demand became stable after it declined in late 2024, with 87,824 square feet of positive absorption in the first quarter. Rents and demand for flex industrial space continue to rise.
Following are some first-quarter highlights.
• Venture capital investment in northwest Arkansas exceeded $28 million, focused on health care and supply chain technology.
• Construction began on OZ Trails’ first chairlift-served mountain bike park in Bella Vista.
• The Alice L. Walton Foundation advanced plans for specialty health care campuses in Bentonville and Rogers.
• Northwest Arkansas National Airport enplanements rose by 9% from the first quarter of 2024.
