Northwest Arkansas Industrial Space Deals Seeing Caution, Decline in Transactions
Industrial and land specialist Palmer Hays from Bennett Commercial Real Estate has noticed a decline in industrial space deals in Northwest Arkansas, with some caution within the investment community. Despite the average deal price per square reaching over $110 for the first time, there has been a decrease in the number and size of deals in the market.
In the first half of 2024, just under 390,000 square feet of property was traded, marking the third consecutive half-year period where total square footage traded has been below the post-COVID average. The total transaction value of $42.7 million was also below the post-COVID half-year average, indicating a slowdown in industrial space transactions in the region. Bulk trades of 100,000 square feet and above have almost come to a halt, with only one such transaction occurring since the beginning of 2023.
Hays remains cautious about the optimism in the market, noting that the recent rate cut announced may not significantly increase activity. With only 11 industrial facilities listed for sale in Northwest Arkansas, most of which have been on the market for some time, there may not be enough supply to meet potential demand. This shortage of available industrial space could impact the market’s future activity and growth.
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