The vacancy rate for office space in central Arkansas eased downward from the first quarter by 0.1 percentage point, falling to 7.1 percent. That’s a 1 percentage point decline from the year-earlier period of second-quarter 2015, when it was 8.1 percent.
“Central Arkansas’ commercial office market continues a very healthy trajectory with a full percentage point in positive absorption overall compared with this time last year, with Class A and B properties seeing the best performance with 7.5 percent and 5.8 percent vacancy rates respectively,” said Greg Joslin, a principal at Irwin Partners of Little Rock.
“Tightening inventory has started swinging the negotiation pendulum to the landlord’s favor, and rents and concession offers are correspondingly tightening," said Joslin. "Recent construction projects have delivered new inventory to the market. However, high construction costs and associated rents per square foot have made these projects largely dependent on having anchor tenants in hand. I think office users can anticipate continued slow and steady positive absorption in our market through the balance of 2016 into first-quarter 2017.”