story by Kim Souza
ksouza@thecitywire.com
There’s no shortage of building activity across Benton and Washington counties with the biggest overall project being the $600 million widening of the spine, aka Interstate 49, to provide better access North to South.
The new NWA Interstate 49 Corridor Report compiled by CBRE brokers David Erstine and Clinton Bennett lists more than 25 large scale commercial building projects underway in the region’s four largest cites along I-49. The projects noted in the report are located within two miles east and west of the corridor. Another two dozen projects in the same vicinity have been publicly announced and have gained planning approval.
“The interchange work in Springdale at Don Tyson Parkway and the Fayetteville Flyover were city investments that are already paying high dividends through increased mobility and commercial investment,” Erstine told The City Wire.
Wal-Mart’s recent announcement of a new Neighborhood Market at the Don Tyson interchange is seen as a catalyst that could spawn more development west of I-49 with the city’s widening of 58th Street, according to Springdale Mayor Doug Sprouse. Sam’s Club has staked out a spot at the junction of 58th Street and U.S. 412 also a new development in west Springdale.
Just one more exit north at Elm Springs Road, McDonald’s and Arvest Bank are building in front of the new Walmart Supercenter, Spouse said the city’s widening of Elm Springs Road west of I-49 in recent years cleared the way for this new development.
ROADS AND OFFICE SPACE
Erstine said the flyover interchange in Fayetteville was important to Whole Foods’ decision to build on College Avenue. He added that the region is “selling itself” to some site selectors in part because of the completed and ongoing infrastructure investments needed to position the area for its burgeoning growth.
“The 8th Street to Walton Avenue interchange, and Bella Vista and 412 bypasses are coming in the next few years which is a positive sign to investors and developers looking at this region,” he said.
Bentonville Mayor Bob McCaslin said recently that the orange barrels, traffic and seemingly endless roadwork is a sign of progress, growth and opportunity. He said it also signals that people want to live here — a growth problem which many cities across the nation would like to have.
Traffic counts along this corridor have doubled in the past decade due to the increase in population of the region and commercial development, and are forecasted to double again by 2020 according to the Northwest Arkansas Planning Commission.
CRBE notes that 70% of region’s existing office square footage, 53% of multifamily square footage, and 58% of retail square footage has been constructed since 2000. It was needed to catch up with growing demand fueled by population shifts. The region has grown at a rate of 944 new residents a month, placing it in the top 20 in percentage growth rates seven times since 1991 according to Northwest Arkansas Council and Census data, the report states.
CORPORATE SHIFTS, EXPANSION
Erstine said Northwest Arkansas is predicted to be the third fastest-growing economy among large metropolitan areas in the nation through 2020, behind only Austin and Raleigh-Durham, according to IHS Global Insight.
“Crossing over the 500,000 population mark was a milestone, an important metric for certain retailers and restaurants. Another 25,000 to 35,000 people and Northwest Arkansas will move into the top 100 metro markets in the nation,” he said.
Erstine and Bennett said the inexpensive capital is fueling much of the speculative commercial investments in retail, office and warehouse projects planned or already underway.
In Benton County they attribute much of the developer confidence back to Wal-Mart’s exploring other formats which is requiring several suppliers already here to add to their staffs and need larger offices. Erstine said Tyson Food’s recent purchase of Hillshire Brands also puts the region in the national spotlight.
In Fayetteville, Erstine said the University of Arkansas’ growth is helping to push more development west to Wedington. Freddy’s Frozen Custard, Starbuck and First Security Bank have projects planned or already underway in that direction, according to the report.
Looking ahead, Erstine said all the commercial building noted in their report, particularly the office and spec retail space, will likely cause some market softening in the next 18-24 months as those projects come online. He said now the space is fairly tight in retail, office and warehouse which is why developers are turning dirt again.
DEVELOPMENTS ON TAP
• Bentonville
Walmart Pickup Grocery
Rainbow Junction Retail space
Walmart Neighborhood Market
Tarden Office Building
Fountain Plaza, 67,355 square feet
Landers McClarty Chrysler Dodge Jeep Ram
Campbell Soup Building
• Fayetteville
Optometry Clinic
Dunkin Donuts
First Security Bank
Super Cuts
Dickies BBQ
Hyundai Dealership
Freddy’s Frozen Custard
Northwest Health Clinic
Hilton Gardens Hotel
Whole Foods
My Dentist
Whataburger
Starbucks
Kum & Go
Fellowship Bible Church
AT&T
Discount Tire
• Lowell
Kum & Go
Washington Regional/Blue Cross
Arkansas State Troopers Facility
• Rogers
Pinnacle Heights Retail
Twin Peaks
Foster’s
Mercy Downtown Rogers
Busters
10 Story Office Building
Shops at Pleasant Crossing, 22,000 square feet
Legacy National Bank
Whataburger
Highrise Trampoline Park
Pei Wei
Shops on the Creeks
Indian Motorcycle
Walmart Neighborhood Market
Cavendar’s Boots
• Springdale
McDonald’s
Med Express
Arvest Bank
Walmart Neighborhood Market
Sam’s Club
Casey’s General Store
Verizon
CVS Pharmacy