Report: Central Arkansas tenants getting creative to combat CRE challenges – Talk Business & Politics

Business actual property agency Colliers Arkansas mentioned tenants within the state’s largest metro market are getting inventive to fight tight industrial vacancies, hybrid work schedules and better rates of interest.

The corporate’s newest quarterly report additionally mentioned Little Rock metro workplace customers are trying more durable at second-generation buildings to economize, and retailers are mixing in leisure choices to maintain the trade afloat.

“The market noticed a mixture of new and present tenants making strikes,” Colliers analysts wrote within the report. “Some present tenants selected to downsize and relocate for one of the best match relatively than face the excessive building prices of a brand new construct. Some bigger tenants are looking for proprietor/occupant properties that may present one of the best worth by letting the proprietor/occupant management their tenant enhancements.

“With landlords elevating charges to cowl the excessive value of tenant enhancements, it was no shock that the market skilled a slight uptick in common lease charges in Q1.”

Colliers analysts mentioned industrial emptiness charges dropped to three.2% within the first quarter of this yr.

“Many prospects are on the lookout for 50,000 to 300,000 sq. ft, and central Arkansas simply doesn’t have the availability to fulfill the demand on the decrease finish,” the report mentioned.

Central Arkansas’ retail market is busy, with eating places and leisure choices main the cost. One notable sale included Park Plaza Mall. The Retailers of Little Rock was additionally put in the marketplace.

Within the workplace market, nationwide tenants proceed experimenting with the hybrid work schedule, which generally ends in a tenant requesting to cut back their sq. footage want at renewal time.

“On the flip aspect, we’ve additionally seen a number of tenants, comparable to logistics and engineering teams, change into aggressive with their enlargement wants,” Colliers analysts mentioned.

Colliers has Arkansas workplaces in Little Rock and Rogers. For a extra detailed evaluation of every submarket in central Arkansas’ business actual property market, click on right here for a PDF.