The commercial real estate sector in the Little Rock metropolitan area continues to grow.

Despite some office vacancies that still persist today, some scheduled foreclosures, and a slight slowdown in industrial growth, the commercial real estate sector in the Little Rock metropolitan area in Arkansas continued to advance in the second quarter of 2024.

The Little Rock office sector experienced a mix of successes and challenges, still with a high number of vacant offices but also with some very notable sales and leases. However, with a broader perspective, as the trend of working from home persists, the market is experiencing a reduction in square footage in some of its industries such as healthcare, insurance offices, finance businesses, etc.

Despite all these challenges and although it is currently a bit slower, leasing activity in Little Rock has not stopped, largely thanks to medical companies, which continue to show interest and seek spaces in the metropolitan area of the city.

As for the industrial sector, although rental rates are higher than in previous years, it remained stable with vacancy rates falling by 0.2% during this last quarter; this despite the fact that no new construction is planned to date and no speculative constructions are expected in the near future.

Retail in the Little Rock metropolitan area remains a strong point, maintaining stability in line with national vacancy rates. Smaller retailers and also big-box stores are choosing to open smaller stores, and many others are using existing spaces without making changes or adjustments, avoiding large initial expenses and contributing to the continuous evolution of retail throughout the Arkansas region.

Regarding multifamily properties, demand increased during this last quarter, providing some stability to the sector. And although the number of real estate transactions remains significantly lower than in previous years, probably due to persistently high interest rates and the fear of foreclosure, these are beginning to increase little by little.

In the neighboring city of Hot Springs, the news is somewhat less encouraging, as vacancy rates increased in all sectors except retail. Several promising new retail projects are underway, and convenience stores continue to open in the area.

On the other hand, the industrial sector in Hot Springs is experiencing notable growth in storage facilities and multifamily housing rentals, which are also seeing a significant increase.

Available foreclosures: 

Little Rock: 15 houses available 

Hot Springs: 8 houses available

By Elías DaSilva | 30 de octubre de 2024.