Presenting a mixed bag, metro areas’ apartment rental rates defy forecast
Industry experts were predicting apartment rental rates would drop during the coronavirus pandemic, though there has been no widespread rent decreases in metropolitan areas in Arkansas.
Across the state, there has been a fluctuation in rental rates and a few markets have seen monthly rates climb significantly when comparing average rates for this month vs. average rates in November 2019. Other areas have seen little change in rates for some units while rent on some apartments has decreased. Essentially, the state has seen a little bit of everything.
Rates were tracked by Zumper, a national agency that monitors pricing in metro areas across the U.S. and helps renters find apartments.
In the Little Rock area, rates have jumped by 15% for one-bedroom units and 13% for two-bedrooms. Single-bedroom apartments are renting for $750 this month, up $95 from year ago. At the same time, two-bedroom apartments are going for $873, a $98 average increase from 2019. Rates for three bedrooms remained unchanged at $1,000 per month.
Little Rock remains the most expensive market in the state for one- and twobedroom units.
However, both the Fayetteville and Hot Springs markets experienced larger rate increases on three-bedroom units. Monthly rental rates for those apartments average $1,400 in Fayetteville, a 4% increase from 2019. Hot Springs renters saw the largest increase in the state with monthly rates for three bedrooms jumping by $500 or 64%. The average cost climbed to $1,300.
Monthly rates for onebedroom units in Fayetteville declined 9% over the year, falling to an average of $650. Two-bedroom units in the area move up slightly by 3% to $825.
Hot Springs renters experienced a 6% average increase for one-bedroom units, with pricing settling at $670 this month. Two-bedroom rentals were up 9%, or $63 per month, to $788.
Rental rates in Pine Bluff remained unchanged for oneand two-bedroom units. However, three-bedroom apartments averaged increases of 7% and were renting for $749 per month. One-bedroom units were going for $503 while two bedrooms were still averaging $635.
Renters in Fort Smith saw rates decline for two- and three-bedroom apartments, falling 1% and 4%. Two bedrooms were charging $638
per month and three bedroom units were renting for $998.
The area did see rates for one-bedroom apartments increase by 3% to $438, the least expensive one-bedroom pricing in Arkansas’ metro areas.
In Jonesboro, pricing for one-bedroom units climbed 10% to $605 per month. Rates for two-bedroom units also were up, increasing by 22%, or $145 per month, to $795. However, renters searching for three bedrooms got a price break, with average monthly rates dropping by 9% to $1,000.
REAL ESTATE DEALS
Commercial real estate firm Flake & Co. recently closed on two deals valued at more than $10 million, helping to sell an office facility and a west Little Rock apartment building.
The company represented both the buyers and sellers when three Arkansas businessmen agreed to purchase office facilities owned and occupied by SCA Pharmaceuticals for $2.7 million.
Thomas Schmidt, co-founder of Flake & Co., and Nick and Thomas Makris, who own an Anheuseur-Busch distributorship in Pine Bluff, purchased the office building at 8821 Knoedl Court, near John Barrow Road and Interstate 630.
Under terms of the sale, SCA Pharmaceuticals agreed to continue leasing the facility for 10 years.
In west Little Rock, the real estate firm managed the $7.4 million sale of Rowan Park Apartments to Aspen Square Management, a privately held real estate investment and management company in West Chesterfield, Mass.
The 72-unit Rowan Park Apartments is the first property Aspen Square has purchased in Arkansas. It also owns and manages properties in Arizona, Florida, Georgia, Kansas, Massachusetts, Michigan, Nebraska, Nevada, Ohio, Pennsylvania and South Carolina.
MORE REAL ESTATE
A community of duplexes in west Little Rock sold Nov. 9 for $7.7 million in a deal led by Colliers International of Arkansas, which represented both the buyer and seller.
The 64-unit Kanis Duplex Community was sold to Kanis Realty of Rogers by Nicholas & Dimes and Perry’s Pennies, both of Little Rock.
The 64 duplexes consist of 96,394 square feet and stretch across 32 buildings on West 20th Street, Wilson Road, Perry Street, Jr. Deputy Road and Nicholas Road.
“This transaction demonstrates how the Arkansas multifamily sector remains stable and healthy despite the covid-19 pandemic,” said Cole Herget of Colliers.
QUALITY TRAINING
The Governor’s Quality Award program is offering training on Dec. 10 for businesses interested in joining next year’s competition. Training will be held 9 a.m.noon.
Training will be offered for the following awards: Commitment (Level 2); Achievement (Level 3); and the Governor’s Award for Performance Excellence (Level 4). The workshop will offer assistance to help participants develop their applications for the program.
All award levels include a feedback report with strengths and gaps prepared by examiners, who are trained industry experts from across Arkansas.
The Governor’s Quality Award initiative uses the Baldrige Excellence Framework, a set of 200 potential questions that set benchmarks for organizational excellence.
More information is available by contacting Trish Villines, executive director at the Arkansas State Chamber of Commerce. Contact details are at (501) 372-2222 or tvillines@arkansasstatechamber.com.