Area’s retail space picks up in 2022, ending with 10.1% vacancy rate

Retail real estate in Central Arkansas is charging back while the region’s industrial sector continues to lead all groups with the biggest leases in the market.

Even so, the retail sector and industrial flex space bounced around in 2022 as commercial real estate improved vacancy rates.

“Throughout 2022, the Central Arkansas commercial real estate market enjoyed a steady decline in vacancy rates throughout the office and industrial sectors,” Colliers of Arkansas reported in a year-end analysis of the region’s real estate market. “By contrast, industrial flex space and the retail sector experienced a few more ups and downs.”

Overall, retail made the largest improvement in vacancy rates last year, ending 2022 with a 10.1% vacancy rate compared with 13.2% in the first quarter ending in March. Nevertheless, the sector still lags the national average, which is below 5%.

Colliers noted the retail sector is struggling as consumer spending in brick-andmortar stores decreases while activity on e-commerce sites gains traction. That trend is likely to continue, though this year could see improvement.

“With inflation finally slowing and interest rates predicted to stabilize later this year, consumer spending power should continue to climb,” Colliers reported in its fourth-quarter market report. “Specifically, growth in brick-and-mortar stores will be driven mainly by smaller shops such as neighborhood centers. Consumers like to shop locally as these neighborhood stores offer convenience and personal interaction.”

Industrial real estate, which delivered a robust performance in 2022 and by far had the best vacancy rates at 3.6%, recorded a slight uptick of two-tenths of a percentage point from the end of September. The sector filled up larger spaces and there are few options available with more than 20,000 square feet.

That could change soon, however, with more than 1.6 million square feet of space expected to be added to the market soon.

Office space was relatively flat from the third quarter that ended in September. The sector remains plagued by office downsizing and uncertainty over long-term work from home arrangements. Growth has been strongest in the core downtown area and suburbs.

“The downtown and west Little Rock submarkets con

tinue to lead all submarkets in both sales and leasing activity volume,” the report said, noting that office vacancy rates improved by a full percentage point in 2022, closing the year at 13.2%.

“Trends for office downsizing and a continued push for shorter term renewals allowing corporate occupiers time to determine longer term staffing and associated spatial requirements remain,” Colliers found.

Colliers has Arkansas offices in Little Rock and Rogers, manages more than 20 million square feet of space and has more than $624 million in sales in the state. The company is a $4.6 billion global provider and manages $92 billion in assets in 62 countries.

GROWING MENTORING PROGRAM

Now in its second year, the Little Rock Venture Center has selected 21 female entrepreneurs to join its VCWoman Achieve program for 2023.

The initiative operates statewide and connects women in business to drive growth, networking and access to capital.

Entrepreneurs and startup female business operators are paired with experienced mentors who provide examples of success.

More than 120 applications were submitted from across the state and finalists were selected based on their diversity in location and background.

Participants operate businesses in the accounting, athletic, construction, food, health and beauty, media, travel and wellness sectors among others.

“Learning directly from like- minded, successful women is the key to what makes a program like VCWoman Achieve so critical for uplifting Arkansas entrepreneurs,” said Mimi San Pedro, chief strategy officer of the Venture Center.

“Our mentors offer these participants essential tools, support and encouragement they need to be dynamic professionals as they work hard to foster and grow their businesses in our communities.”

More information is available at venturecenter.co.

HEALTH CARE ACCELERATOR ADDS PARTNER

HealthTech Arkansas, which provides accelerator programs for the health care sector, has formed a new partnership to support the biotherapeutics startups taking part in the BioAR Trial accelerator program.

Kx Advisors consults with leading pharmaceutical, biotechnology, medical technology, digital health, and diagnostics companies to help them capitalize on product opportunities and maximize the lifetime commercial value of their portfolios.

As part of the partnership, companies selected for the BioAR Trial cohort will participate in a virtual seminar on growth strategies presented by Kx Advisors.

“Among Kx’s strengths is our strategic advice supporting companies with clinical-stage assets,” said Sean Vander Linde, partner at Kx Advisors.

“Partnerships such as these allow us to contribute to setting these organizations and their valuable innovations up for success.”

BioAR Trial helps biotherapeutics companies in late pre- clinical stages of development to deliver innovative therapies to market faster and increase Arkansans’ access to cutting-edge clinical care and medicines.

Applications for BioAR Trial are open through Feb. 28. More information is available at bioarkansas.co.

ENCORE BANK ADDS CHARLOTTE

Encore Bank of Little Rock has opened new offices in Charlotte, N.C., expanding its presence across the region.

The lender’s first full-service office in North Carolina is located in the Apex SouthPark development in Charlotte.

“We are leveraging the talents and expertise of our employees to build a different kind of bank, offering technology that is convenient for our clients and partners, all while maintaining the high standard that Charlotte has set for itself as a leader in the financial services industry,” said Ben Freeman, Encore’s Charlotte market president.

Encore Bank operates in four other markets in the Carolinas: Charleston, Greenville, Raleigh and Winston-Salem. A full- service branch was opened in Charleston in September of last year, and according to Michael Sharpton, Encore’s regional president of the Carolinas, full-service branches will be open soon in the other markets.

Privately held Encore Bank focuses on commercial lending and has operations in 20