Total commercial property vacancy in Counties Benton and Washington declined in the first half due to the warehouse sector, while office vacancy increased as more employees continued to work from home due to the COVID-19 pandemic. 19 concerns.
According to the Skyline report released today, the vacancy rate for all commercial properties in the two counties was 8.9% from January to June 2021, compared to 10.8% for both halves of 2020.
Mervin Jebaraj, director of the University of Arkansas Center for Business and Economic Research, said in an interview that space needs are driving demand in the warehouse area as more people shop online.
The value of building permits hit an all-time high of around $ 647 million in the first half of this year, with $ 435 million attributable to the new Walmart headquarters project in Bentonville. Excluding this project, the value of permits for the first half of 2021 was approximately $ 212 million, up from nearly $ 189 million in the final half of 2020 and the second largest total since the report began.
The warehouse area was a major driver of the reduced vacancy rate in the first six months of the year with a vacancy rate of 6.6%, down almost 3% from 9.3% in the second half of 2020. No new storage space was added during the reporting period.
In the office sector, the vacancy rate rose from 10.8% in both half of 2020 to 11.2% Covid19 pandemic. According to the report, the office sector added about 165,000 square feet, but only about 1,000 square feet were absorbed.
The vacancy rate in retail was 10.8%, unchanged compared to the second half of 2020.
The Skyline Report examines the residential, commercial, and multi-family real estate markets in Counties Benton and Washington. Researchers at the University of Arkansas Center for Business and Economic Research at Fayetteville are compiling data for the report. Arvest Bank first sponsored the Skyline Report in 2005.