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S&P brightens rating outlook for Arkansas

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S&P brightens rating outlook for Arkansas


Citing Arkansas’ “financial resiliency,” S&P Global Ratings revised the outlook on the state’s AA general obligation bond rating to positive from stable.

The rating agency’s action Thursday came ahead of the state’s sale of about $30 million of water, waste disposal and pollution abatement facilities GO bonds.

“S&P’s improved outlook for the state from ‘stable’ to ‘positive’ is a direct result of the hard work by Governor (Sarah Huckabee) Sanders and the Arkansas General Assembly to fully fund our long-term reserves and to limit the growth of spending,” said Jim Hudson, secretary of the Arkansas Department of Finance and Administration.

“The outlook revision reflects Arkansas’ demonstrated budget management practices and financial resiliency across economic cycles, which has yielded steady operating surpluses and an accumulation of substantial reserves,” S&P analyst Rob Marker said in a statement. “This is in conjunction with our expectation that recent improving economic and demographic growth trends will more closely align with U.S. levels over time, all of which support our view of a one-in-three chance that we could raise the rating over the outlook period.”

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Arkansas is rated Aa1 with a stable outlook by Moody’s Ratings.

“The rating reflects the state’s strong governance practices, with conservatively managed financial operations that consistently result in healthy year-end fund balances and below-average debt and pension burdens,” Moody’s said in a May 1 report. “These features balance credit risks stemming from a weak demographic profile and exposure to elevated Medicaid expenses.”

“I’m pleased that both Moody’s and S&P affirmed their credit ratings for the State of Arkansas,” said Jim Hudson, secretary of the Arkansas Department of Finance and Administration. “S&P’s improved outlook for the state from ‘stable’ to ‘positive’ is a direct result of the hard work by Governor (Sarah Huckabee) Sanders and the Arkansas General Assembly to fully fund our long-term reserves and to limit the growth of spending.”

The state had $514.13 million of GO bonds issued for highways, water, capital improvements, and higher education outstanding as of June 30, 2023. 



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Arkansas Labor Union Membership Hits Record Low

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Arkansas Labor Union Membership Hits Record Low


Labor union membership in Arkansas fell to a record low in 2025, according to new data from the U.S. Bureau of Labor Statistics.

Among wage and salary workers, 2.8% were union members, down from 3.5% in 2024 and four-tenths of a percentage point below the previous low of 3.2% in 2012.

Arkansas’ 2025 union membership rate tied with South Carolina’s for third lowest in the U.S. North Carolina posted the lowest rate at 2.4%, followed by South Dakota at 2.7%.

Hawaii had the highest union membership rate at 24.8%, followed by New York at 21.3% and Alaska at 18.1%.

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The total number of Arkansas union members in 2025 was 36,000, down from 45,000 in 2024. Another 8,000 workers were represented by a union or covered by an employee association or contract, but were not union members themselves.

The state’s union membership rate peaked in 1990 at 10.3%.

Since 1989, when comparable state data became available, union membership rates in Arkansas have been below the U.S. average.

In 2025, the national union membership rate was 10%, up from 9.9% in 2024. About 14.7 million wage and salary workers were union members, while another 1.8 million were represented by unions but were not members.

Public-sector membership was 32.9%, remaining much higher than private-sector membership, which was 5.9%.

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A Capital Reawakening: Momentum Builds in Arkansas’ Commercial Real Estate Market

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A Capital Reawakening: Momentum Builds in Arkansas’ Commercial Real Estate Market


After several years defined by volatility, commercial real estate is entering a new phase — not a broad-based rebound but a disciplined capital reset. Today, interest rates are stabilizing, liquidity is improving and transaction activity is beginning to reemerge. As national outlooks by CBRE, JLL, Colliers and others have highlighted, capital is steadily returning to the market with greater selectivity.

Investors are increasingly focused on markets and property assets with durable fundamentals rather than speculative growth. It is a shift I believe will favor midsize regions such as Arkansas.

Nationally, the commercial real estate landscape remains uneven. Major urban cores continue to work through office oversupply, while industrial markets are normalizing following years of record demand and new development. As a result, underwriting has shifted toward greater emphasis on cost basis, tenant quality and long-term functionality. What does it all mean? In the current environment, capital is gravitating toward assets that align with how companies operate today and where their employees want to be.

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At Tempus Realty Partners, we are seeing consistent demand for Class A office space located in vibrant, mixed-use environments, particularly in secondary and suburban growth markets such as northwest Arkansas. The trend is evident at our Uber Freight building in Rogers, which sits within an active transportation corridor and is surrounded by established retail, expanding multifamily development and everyday, in-demand amenities that support employees and employers.

It is a dynamic further reinforced by nearby speculative office development. We see the same investment pattern at Crosspoint Plaza in Fishers, Indiana, a market that closely mirrors Rogers. When we acquired the property in 2019, it was nearly vacant. Yet despite COVID-19-pandemic-era headwinds, it has since been leased to 100 percent occupancy. These projects reflect the broader shift of companies selecting locations close to where their employees live. Businesses, like their team members, favor environments with strong retail access, modern amenities, and connectivity, such as extensive trail networks.

Industrial demand, while moderating nationally, also remains strong in regions that are strategically located for regional distribution, advanced manufacturing and, increasingly, large-scale digital infrastructure. In Arkansas, our central location, talented workforce and affordability continue to attract traditional industrial users, while robust power access and supportive utility partners are helping us compete in the rapidly growing data center and artificial intelligence infrastructure market.

Over the past several months alone, Arkansas has announced two of the largest investments in its history. The projects include the $6 billion AVAIO Digital campus near Little Rock and the $4 billion Google data center campus in West Memphis. The record-breaking investments underscore the importance of power availability and regional scale in today’s site-selection decisions.

Despite the bright spots, 2026 will not be without challenges for commercial real estate. Office vacancy remains uneven in certain markets, particularly those that overbuilt prior to 2020, and it will take time for these properties to right-size and normalize. Rising warehouse vacancies also serve as a reminder that real estate is inherently local. As we do at Tempus, investors must temper broad optimism with rigorous market-by-market analysis, grounded in asset-level performance, tenant behavior and micromarket dynamics.

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Is 2026 the time to invest in commercial real estate? Most experts agree that capital will continue returning to the market with greater discipline, prioritizing quality, functionality and assets that reflect how people work, do business and live today. Tempus Realty Partners has followed that common-sense approach since our founding a decade ago, focusing on long-term value creation and reliable outcomes for tenants and investors alike.

As we embark on a new year, I believe a disciplined strategy that leans into Arkansas’ strengths can — and will — position our state to benefit meaningfully from the ongoing reawakening of the commercial real estate market.

Clay Ramey is a partner and vice president of capital markets for Little Rock-based Tempus Realty Partners, an investor-centric real estate investment partnership that has acquired more than $1 billion worth of property across 25 states since its founding 10 years ago. Email him at cramey@tempusrealty.com.

READ ALSO: Brent Birch to Transition Out of Executive Director Role at Little Rock Tech Park



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4 people killed, 5 others injured in 4 Arkansas crashes | Arkansas Democrat Gazette

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4 people killed, 5 others injured in 4 Arkansas crashes | Arkansas Democrat Gazette


Four people were killed and five injured in four crashes on Arkansas roads from Friday to Tuesday, according to preliminary police reports.

On Friday, James Early, 68, of Marvell was killed while driving against traffic on U.S. 49 in Poplar Grove, a report from the Arkansas State Police says.

Early was driving a 2014 Hyundai Elantra south in the northbound lane near 11262 U.S. 49 around 9:30 p.m. when he struck a 2005 Chevrolet Tahoe heading north, the report says. Vincent Boyd, 37, of Marvell, the Tahoe’s driver, was injured, the report says.

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On Saturday, Melissa Alsup, 58, of Paragould was killed in a head-on collision on U.S. 49 in rural Greene County, a state police report says.

Alsup was driving a 2007 Cadillac north near 5360 U.S. 49 at 5:27 p.m. when the vehicle crossed the center lane into the southbound lane and struck a 2019 Kia, the report says. The Kia’s driver, Bryan Parker, 47, of Brookland; and Ashley Allen, 47, of Brookland, a passenger in the Kia, were injured, the report says.

On Monday, William Elting, 70, of Harrison was killed in a three-vehicle crash on U.S. 65 in Harrison, a report from Harrison police says.

Elting was driving a 2007 Chevrolet Silverado north at 8:35 a.m. when the vehicle entered the southbound lanes and struck a 2024 Ram 2500 heading south, the report says. The Ram was pushed into a 2014 Ram 2500 also heading south, the report says.

Eric Kirk, 54, of Bolivar, the 2024 Ram’s driver, was injured, the report says.

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On Tuesday, Kenneth Goff, 65, of Fort Walton Beach, Fla., was killed in a two-vehicle crash on Arkansas 376 in rural Ouachita County, a state police report says.

Goff was a passenger in a 1992 Ford Ranger heading east that failed to stop at the intersection with U.S. 79 and was struck by a 1997 Mack Truck heading south at 8:14 a.m., the report says. Teresa Chase, 64, of Red Oak, Iowa, the Ford’s driver, was injured, the report says.



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