NORTHWEST ARKANSAS, Ark. (KNWA) — A skyline report by Arvest bank shows the vacancy rate for office space in Northwest Arkansas is the lowest it’s been since 2004.
The report studies residential and commercial real estate, and is a sign of the strong business community in our area.
Mervin Jebaraj, Director of the Center for Business and Economic Research at UA, says Walmart building a new headquarters to attract millennials is one reason why less office space is available.
“That’s going to generate a little bit of demand for office space as they displace a lot of people within their own facility. In addition to that, all of their supplier community had very modest offices which kind of reflected what Walmart headquarters looked like. Their suppliers had the same competitive pressures, they are trying to get millennial employees, and they need nicer offices. A lot of them are upgrading the offices that they have,“ Jebaraj said.
On the other hand, the report shows vacancy rates for warehouse space has gone up.
Jebaraj says vacancy rates for this type of space can change quickly because of their size.
He adds the growth of online shopping should increase the demand for this space in the future.