A second-quarter review of the office market in Central Arkansas finds a “relatively stable” environment despite economic turmoil churned up by the ongoing coronavirus pandemic.
“The office market is starting to re-invent itself with many users now looking to turn back the clock to the ‘80s office layout, with less collaborative space and more private offices,” Colliers International reports in its review.
The study notes office and retail markets are slower in reaction to the pandemic but the commercial real estate firm projects that new construction could pick up again soon, especially for industrial customers needing larger facilities.
“The combination of an e-commerce boom and supply chain demands have spurred an absorption of the larger footprint properties, to a point where new construction starts are expected by year’s end,” Colliers wrote in the report.
The report predicts that office users could flock to downtown spaces again in the post-pandemic environment to take advantage of lower costs.
Colliers’ analysis provides a broad view of the commercial real estate market in Central Arkansas, diving into specifics for several areas in Little Rock as well as Cabot, Conway, Jacksonville, North Little Rock, Sherwood and Saline County.
The report examines the office, industrial and retail submarkets for the second quarter of the year.
In the office market, Colliers notes there could be a shift back to more private office space, with limited or scaled-down amenities vs. the open-room working spaces that have gained popularity. That change could result from efforts to promote health and safety “and accommodate recommended social distancing,” the report said.
Tenants could find favorable conditions moving forward, with Colliers projecting more flexible leasing terms and lower rents as landlords try to hold on to clients during the pandemic.
Industrial is seeing “exceptional” demand for space in the 50,000- to 100,000-foot-range as companies search for facilities to support the explosion in e-commerce and to store excess inventory.
“This type of velocity for large blocks of space is perhaps unprecedented in Central Arkansas,” the report says.
There is little available space to meet the need, and Colliers estimates that new construction could be on the horizon. National retailers Amazon and Costco have major facilities being built in Little Rock.
Retail leasing in Central Arkansas remains a problem caused by the lingering pandemic. Large shopping centers are experiencing a 12.3% vacancy rate, according to the study.
“Local tenants are day-today in evaluating the future of their business needs and staff,” the study said.
Colliers International, with offices in Little Rock and Rogers, is the state’s largest commercial real estate, property management and development management firm. The Canada-based company has about 15,000 employees in 68 countries
LEADING IN LOAN PROGRAM
Arvest Bank was the leading lender in Arkansas in originating Paycheck Protection Program loans to small businesses battling the coronavirus pandemic.
An analysis of the federal aid initiative shows that Arvest accounted for 15.4% of paycheck protection loans in Arkansas, which was in the top 10 states for loans issued, according to the study by financial technology company SmartAsset.
Since the loan program started April 3, more than 42,000 loans valued at $3.3 billion have been issued in the state. Arvest Bank was responsible for 6,553 of the total loans, according to the study, which found that about 91% of the loans were for amounts of less than $150,000, according to the study.
Nationwide, Bank of America accounted for roughly 7% of the 4.8 million paycheck protection loans in the U.S., more than any other lender.
SmartAsset analyzed data from the U.S. Small Business Administration, which administered the program, to identify the most popular program lender in each state.
$5M FOR MEAT PROCESSORS
Small meat and poultry processors will have access to $5 million in grants to help them stay afloat during the pandemic.
Processing facilities with fewer than 200 employees can apply for funding through the Arkansas Department of Agriculture. The grant program is supported by federal dollars from the Coronavirus Aid, Relief, and Economic Security Act.
Funding requests should focus on improving food supply resilience by increased livestock and poultry slaughter, expanding meat or poultry processing capacity or promoting worker safety.
Grants may reimburse up to 90% of eligible expenses for workforce assistance, equipment and capital improvements. Those reimbursements are retroactive to March 1 and extend to Nov.
30.
Financial support “will help address the lack of local, small-scale meat processing capacity in Arkansas that limited our producers’ ability to meet consumer demand for locally grown meat products during the Covid-19 related disruptions,” Agriculture Secretary Wes Ward said in announcing the program.
Arkansas ranks 10th in the nation in the value of animals and animal products that provide more than $5.6 billion to the state’s economy annually, according to the Agriculture Department.
Applications are due Sept.
- Go to agriculture.arkansas.gov for more information.
TAX SCHOOL
The Arkansas Cooperative Extension Service’s income tax school will begin holding sessions Nov. 3 to help tax preparers get ready for 2021.
The two-day courses, offered through the University of Arkansas System’s Agriculture Division, provides details about the latest updates in the tax code and a review of current tax law. Courses will be offered in-person and online.
In-person classes on Nov. 3-4 will be conducted at extension service offices at 2301 S. University Ave. in Little Rock. Attendance is limited to promote social-distancing standards.
Online sessions, delivered through Zoom videoconferencing, are schedule for Nov. 9-10 and again on the Nov. 19 and 20. Training materials will be mailed to participants before the classes.
“We will be following the Arkansas Department of Health guidelines and protocols to keep everyone safe,” said Kim Magee of the state division of Agriculture.
The program costs $250 for those who register by today; cost is $310 afterward.
Nikki Dawson has more information at ndawson@uaex.edu or (501) 671-2003.