Arkansas' proposed constitutional vote change

1 big thing: What to know about Issue 2

Is a new job in your future?

2. Walmartians top in cycle challenge

A green bicycle leans against a brick wall. 

2. 4 places to grab lunch under $10 

3. Where to grab lunch under $10 

4. Kitchen Sink: News drippings 

Illustration of a faucet with animated drips shaped like the letters N, W, and A falling out.

We're glad you made it through the weekend OK and are here with us. 

☀️ Today will be sunny with a high in the low 80s.

Today's newsletter is 749 words — a 3-minute read.

Thanks to Gigi Sukin for editing and Carlin Becker for copy editing this newsletter.

🤿 Alex has the day off. Worth imagines she's sipping Capri Sun and playing on a Slip 'N Slide. 

🛸 Worth is listening to Kurt Vonnegut's "Breakfast of Champions" performed by Stanley Tucci, which mentions Little Rock, Tulsa, and so on. 😂

Do you write emails? Screenplays? Grocery lists? Learn how to say more with less in a new book from Axios' founders — "Smart Brevity." 

NW Arkansas

A daily look at the most significant and interesting stories affecting Northwest Arkansas, written by local reporters.

Axios Northwest Arkansas

Manufacturing renaissance signaled for micropolitans

1 big thing: Manufacturing renaissance signaled for micropolitans

A stone sign welcomes motorists to Los Alamos, New Mexico, home to the Los Alamos National Laboratory established in 1943 as part of the Manhattan Project.

2. NWA's dog days decrease 

3. Kitchen Sink: Just the facts, ham 

Illustration of a razorback wearing sunglasses with a faucet reflected in the lenses.

Food for thought: Rogers' Ramen Nara rocks

4. Ramen that rocks 

Check out our Job Board

5. Red the Tide out

🎶 Here's some Alabama scorn to start your weekend. 

😎 Weekend weather: Perfect. Sun and near 80. 

🚨 Situational awareness: The Arkansas School Safety Commission's final report is due to Gov. Asa Hutchinson tomorrow. It will be used to guide how schools can apply for their share of $50 million in grant money earmarked for safety measures.

Today's newsletter is 852 words — a 3.5-minute read.

This newsletter was edited by Gigi Sukin and copy edited by Carlin Becker.

🏔 Alex is out for the day. Worth imagines she's climbing Mt. Kilimanjaro. 

📖 Worth is listening to a "Fresh Air" interview with the author of "By Hands Now Known."

Attainable housing relief for Northwest Arkansas on horizon

1 big thing: Attainable housing relief on horizon 

Illustration of a Rubik's cube in the shape of a house. 

Take your career to the next level

2. Rogers revs up for bikes and blues 

A biker rides down Main Street during the annual Sturgis Motorcycle Rally August 6, 2003 in Sturgis, South Dakota. 

3. Kitchen Sink: Tusk time

Illustration of a wild board holding a newspaper in its mouth.

4. Springdale park to get makeover

☀️ You can't beat this weather. Sunny with a high in the low 80s.

Thank you to our Axios NW Arkansas members for their support! Join them today.

Today's newsletter is 734 words — a 3-minute read.

🧂 Alex is out today. Worth imagines she's exploring the salt flats in Bolivia. 

👂 Worth can't get this Seal song out of his head and is upset about it. 🪱

🎧 Hear the story of Elon Musk's meteoric rise — and why it matters for us all if he takes over Twitter — on the newest season of Axios' podcast “How it Happened: Elon Musk vs. Twitter.” Listen to episode two and subscribe here.

Northwest Arkansas is low on commercial space

1 big thing: Commercial real estate is hot, but warehouse space is on fire

2. STD cases are on the rise

3. Bikes, Blues & BBQ revs up

Illustration of a motorcycle with exhaust in the shape of music notes.

4. Kitchen Sink: News drippings and clippings

Illustration of the Bentonville Water Tower, with a faucet added to it.

Plan your future

5. Where in NWA is this? 

A mural on a building of a stagecoach and buildings.

😎 The weather? Awesomeness. Sunny in the low 80s again. 

👂 Pssst. Can you let your friend know we like 'em? You know the one. Just forward this email.

Today's newsletter is 776 words — a 3-minute read.

🌻 Alex is back to work. She had a lovely time being in a friend's wedding in Little Rock.

📻 Worth is listening to "How it Happened: Elon Musk vs. Twitter."

Investment firms net 2 Arkansas properties in $500 million apartment deal

1 big thing: A $500 million apartment deal

Illustration of a hand about to pick up the last house surrounded by leftover imprints of other long gone houses.  

Tyson Foods to shift Illinois and South Dakota workers to Springdale HQ

2. Tyson Foods' HQ consolidation  

3. Tulsa road trip tips

4. Kitchen Sink: Basin of information

Illustration of a pattern of kitchen sinks.

A new career is waiting for you

5. Chart to go: coronavirus hospitalizations

☀️ Today's weather: Hit repeat. High in the low 80s and sun. 

Today's newsletter is 760 words — a 3-minute read.

Thanks to Shane Savitsky for editing and Carlin Becker for copy editing this newsletter.

🪕 Alex saw The Chicks at the AMP on Tuesday.

Worth is taking a little time off. See ya. 👋

A trio of investment firms led by Dallas-based RREAF Holdings have closed a $500 million deal to snap up 10 multifamily properties in seven states. Glen at Polo Park in Bentonville and River Pointe in Maumelle are part of the transaction. 

The big picture: Investors see the promise of economic growth across the South as workers migrate for jobs, affordable housing, quality of life and warmer climes. 

Inflation, increased demand and investors looking to maximize profits have kept rents climbing the past few years. 

Zoom in: Only 2.3% of NWA's available rental properties were vacant as of June 30. Prices were up 18% between the beginning of 2021 and the middle of this year to an average of $860.

The increased cost of living makes it more difficult for NWA's workforce to live here, putting the area's growth in jeopardy. 

Between the lines: Fannie Mae predicted in July that rents would decrease slightly during the second half of the year, while noting that demand would remain strong.

The U.S. median rental price did dip in August for the first time since November 2021.

Yes, but: Rising mortgage rates could discourage homebuying and push more people into rentals, keeping prices high, Axios' Emily Peck writes. 

Details: Other properties in RREAF's portfolio are in Georgia, Indiana, Mississippi, Oklahoma, and North and South Carolina. In all, there are 2,744 units in the deal. 

They're collectively 93% occupied and located in either capital cities or college towns. 

The investment group, which includes DLP Capital and 3650 REIT, told Axios they intend to upgrade the properties — all built between 1998 and 2012. 

What they're saying: "We’re expecting to get a return on that additional invested capital based on the location and the tenant profile at every complex, and make certain that it’s affordable for the clientele," RREAF CEO Kip Sowden told Axios.

"There has been a tremendous amount of rent growth ... because demand far exceeds supply and we really don’t see that supply catching up to that demand," Sowden added.

Flashback: The same group purchased 21 properties for $543 million last November, including one each in Russellville, Van Buren and Arkadelphia. 

Nine of those properties were in Georgia. 

What we're watching: It's estimated by the multifamily industry that the U.S. will need 4.3 million more apartments by 2035 to meet demand.

Investors continue to see the promise of economic growth across the South.

Real estate investment trusts (REIT)

A trio of investment firms led by Dallas-based <a class="gtmContentClick" data-vars-link-text="RREAF Holdings" data-vars-click-url="https://rreaf.com/" data-vars-content-id="1483bb22-6cd2-44f1-9711-98c85c269831" data-vars-headline="Investment firms net 2 Arkansas properties in $500 million apartment deal" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://rreaf.com/" target="_blank">RREAF Holdings</a> have closed a $500 million deal to snap up 10 multifamily properties in seven states. Glen at Polo Park in Bentonville and River Pointe in Maumelle are part of the transaction. The big picture: <a class="gtmContentClick" data-vars-link-text="Investors see the promise" data-vars-click-url="https://www.wsj.com/articles/real-estate-investors-head-south-bid-up-sunbelt-apartment-buildings-11644930001" data-vars-content-id="1483bb22-6cd2-44f1-9711-98c85c269831" data-vars-headline="Investment firms net 2 Arkansas properties in $500 million apartment deal" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.wsj.com/articles/real-estate-investors-head-south-bid-up-sunbelt-apartment-buildings-11644930001" target="_blank">Investors see the promise</a> of economic growth across the South as <a class="gtmContentClick" data-vars-link-text="workers migrate" data-vars-click-url="https://www.axios.com/local/nw-arkansas/2022/02/16/study-heartland-talent-trickles-from-coasts" data-vars-content-id="1483bb22-6cd2-44f1-9711-98c85c269831" data-vars-headline="Investment firms net 2 Arkansas properties in $500 million apartment deal" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/local/nw-arkansas/2022/02/16/study-heartland-talent-trickles-from-coasts" target="_self">workers migrate</a> for jobs, affordable housing, quality of life and warmer climes.

Real Estate

Business

Tyson Foods said Wednesday it will shutter its U.S. satellite corporate campuses in Chicago and Dakota Dunes, South Dakota, and move employees to its world headquarters in Springdale. 

Why it matters: Tyson can shed some pricey office assets and boost NWA's economy by bringing even more higher-wage earners to town. 

Yes, but: Not all employees will be willing or able to relocate, and the absence of company leaders in key markets could hinder relationships with suppliers, customers and potential talent. 

A spokesperson told Talk Business & Politics that the company will pay for relocation, and those who choose not to move will receive a severance package based on years of service. 

By the numbers: A spokesperson for Tyson told Axios about 1,000 people would be impacted, but the company's website says there are about 650 at each location. 

The company said no layoffs are associated with the announcement. 

A research and development center in Downers Grove, Illinois, is also part of the closures.

The company said "phased relocation" will begin early next year.   

Background: The Dakota Dunes campus was part of Tyson's 2001 acquisition of ibp, inc. The Illinois locations were part of an $8.5 billion acquisition of The Hillshire Brands Company in 2014.  

What's next: Tyson will expand its Springdale campus, incorporating new indoor and outdoor spaces, and remodel some of its existing facilities.  

Disclosure: Reporter Worth Sparkman formerly worked at Tyson Foods.

National

The food giant can shed some pricey office assets, but not everyone will come along.

Tyson Foods headquarters in Springdale. Photo: Worth Sparkman

Tyson Foods

Tyson Foods <a class="gtmContentClick" data-vars-link-text="said Wednesday" data-vars-click-url="https://ir.tyson.com/news/news-details/2022/Tyson-Foods-Builds-its-Future-as-OneTyson/default.aspx" data-vars-content-id="2cd63ab5-8fb2-4267-84cc-b3641cd94d03" data-vars-headline="Tyson Foods to shift Illinois and South Dakota workers to Springdale HQ" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://ir.tyson.com/news/news-details/2022/Tyson-Foods-Builds-its-Future-as-OneTyson/default.aspx" target="_blank">said Wednesday</a> it will shutter its U.S. satellite corporate campuses in Chicago and Dakota Dunes, South Dakota, and move employees to its world headquarters in Springdale. Why it matters: Tyson can shed some pricey office assets and boost NWA&#x27;s economy by bringing even more higher-wage earners to town.

News

A church, a developer and a foundation are working to solve the puzzle of affordable housing in NWA.

What's happening: Cobblestone Farm Community, a new development in Fayetteville's south side, is working to provide houses for rent to about 100 families. 

Excellerate Foundation, Strategic Realty and New Heights Church broke ground on the project Monday. 

State of play: Vacancy rates are tight, with only 2.3% of NWA's available rental properties unfilled as of June 30, according to the Skyline Report.

And scarcity is driving prices up. The average lease rate has jumped 18% from $729 at the end of 2020 to $860 in June.

Details: The project, dubbed The Community, will mostly be duplexes with one to four bedrooms.

Flashback: This is one of five developments, with a total of 345 units, that Excellerate Foundation announced last fall. 

About half a dozen local businesses invested $40 million in the NWA Regional Fund, a tax credit syndicate, to pay for the construction of the projects. 

The properties are in various stages of development. 

Details: The new housing development is south of the 25-acre nonprofit Cobblestone Farm, at Wedington Drive and 54th Avenue.

Land was originally donated to New Heights Church, a spokesperson for Excellerate Foundation, told Axios.

What they're saying: "Regional data shows that there are at least 150,000 people who can't afford market-rate housing in Northwest Arkansas, especially when it comes to rental properties," Jeff Webster, president and CEO of Excellerate Foundation, said in a news release. 

"And, as a study released in 2019 by Walton Family Foundation notes, 'failure to act could result in widespread instability, including job losses, increased poverty, and rising numbers of homeless individuals and families,'" Webster added.

What's next: The development's construction is expected to be completed between late 2023 and early 2024. 

Northwest Arkansas

A church, a developer and a foundation are working to solve the puzzle of affordable housing in NWA.What&#x27;s happening: Cobblestone Farm Community, a new development in Fayetteville&#x27;s south side, is working to provide houses for rent to about 100 families.

Source: Skyline Report; Chart: Axios Visuals

Less than 1% of warehouse space in NWA is available for lease — meaning there is functionally zero square footage to rent.

The vacancy rate has fallen sharply from the 5.3% available at the beginning of the year. 

Much of the square footage for storage is being consumed by e-commerce and subcontractors staging supplies to build Walmart's new home office. 

The big picture: The area's overall commercial real estate vacancy rate — from warehouse to class A office space — dropped to 5.8% as of June 30, down from 8.3% at the beginning of the year. It's the tightest the region's market has been since at least 2005.

Commercial real estate occupancy is an indicator of an area's economic performance. Vacancy rates in the single digits are generally good for developers, but can make it difficult for tenants to find desirable, affordable space. 

Driving the news: Data comes from the biannual commercial Skyline Report out Tuesday. The residential report for the first half of 2022 was released in September. 

Context: The report divides commercial real estate into seven submarkets: office, medical office, office/retail, office/warehouse, retail, retail/warehouse and warehouse. 

Yes, and: Vacancy rates in six of the submarkets declined between June 30, 2021 and June 30, 2022.

Only medical office space increased from 4.3% in the first half of 2021 to 6.6% in the first half of 2022.

Office space had the highest rate as of June 30, at 9.1%. The office/retail submarket was the second highest at 8.2% vacant. 

What they're saying: "[It] looks like even though people might be working remotely some days of the week, office space demand hasn't declined any," Mervin Jebaraj, director of the Center for Business and Economic Research at the University of Arkansas, told Axios.

"There's still a lot of demand for warehouse space. That's not necessarily going to change in the near future because we've seen quite a bit of e-commerce growth. People are still worried about the supply chain, so they are … holding more warehouse space to hold inventory," he said. 

The bottom line: "I see us in a market that all of the vacancy rates tell us we should build, but that has to be weighed against the pressure we have of interest rates and construction costs, and that is a nasty looking and tasting soup," Jeff Pederson, a senior vice president with Lindsey & Associates, told Axios. 

He expects developers will slow down on speculative commercial construction in the near future.

In the last month, Pederson has seen some projects with good potential be put on hold. 

Yes, but: "This doesn't mean that it's over," he said. "This is a correction. It's doing exactly what it's supposed to do."

Functionally zero square footage to rent.

Real estate

Less than 1% of warehouse space in NWA is available for lease — meaning there is functionally zero square footage to rent.<ul><li>The vacancy rate has fallen sharply from the 5.3% available at the beginning of the year. </li></ul>

Denver

Axios Denver

In Colorado and nationwide, small metro areas — dubbed "micropolitans" — have found that mixing outdoor recreation with manufacturing led to prosperity during the pandemic. 

Why it matters: The COVID pandemic has shown, more than ever, that a diversified economy is the best hedge against the unknown, Axios Northwest Arkansas' Worth Sparkman writes.   

Driving the news: Four Colorado towns were listed among the nation's top 25 most dynamic micropolitans in a new report from Heartland Forward, an economic renewal institute in Bentonville, Arkansas.

The Centennial State's top micropolitans are: Edwards (No. 10), Breckenridge (15), Steamboat Springs (16) and Montrose (25), per the analysis. 

Edwards benefited from REVER developing a motorcycle ride-planning app that gives guidance for on- and off-road routes across the state and beyond, the report states.  

How it works: Heartland Forward's study — "Most Dynamic Micropolitans: 2022" — ranks 536 U.S. towns with populations of 10,000 to 50,0000 people. 

Researchers used growth in average annual pay, employment numbers, GDP, level of per capita income, young-firm employment share and share of degreed workers employed at young firms.

The ranking uses both historical and forward-looking data — including entrepreneurship — to show where growth is likely.

What they're saying: "Areas offering a mix of broadband connectivity and access to the outdoors became a respite from the difficulties of pandemic-era city life," the report says.

The figures can be used as a roadmap for micropolitans looking to grow their economies, Dave Shideler, Heartland Forward chief research officer, told Axios.

Zoom in: Twelve of the top 25 micros are in the West, including Colorado, Idaho, Montana, Nevada, Utah and Wyoming. 

Unsurprisingly, Colorado's 10 micropolitans are mostly in the western part of the state, including Glenwood Springs (40), Durango (112) and Craig (270).

Yes, but: Two towns in northeast Colorado — Sterling (172) and Fort Morgan (113) — also landed on the list. 

4 Colorado towns among nation's top 25 most dynamic micropolitans

<figure><img alt="" height="643" id="15a670c3-ef64-40db-af9a-392ed7aa8941" src="https://images.axios.com/QBwc1BOCQGK8hxUKG_8tksxtOTQ=/2022/10/03/1664831453179.png" width="1116"/><figcaption>Graphic: Heartland Forward</figcaption></figure>In Colorado and nationwide, small metro areas — dubbed &quot;micropolitans&quot; — have found that mixing outdoor recreation with manufacturing led to prosperity during the pandemic. Why it matters: The COVID pandemic has shown, more than ever, that a diversified economy is the best hedge against the unknown, Axios Northwest Arkansas&#x27; Worth Sparkman <a class="gtmContentClick" data-vars-link-text="writes" data-vars-click-url="https://www.axios.com/local/nw-arkansas/2022/09/30/manufacturing-outdoors-micropolitans-heartland-ranking" data-vars-content-id="bf03a4b1-b9d4-4567-9ec4-4ed9b9c69acc" data-vars-headline="4 Colorado towns among nation&#x27;s top 25 most dynamic micropolitans" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/local/nw-arkansas/2022/09/30/manufacturing-outdoors-micropolitans-heartland-ranking" target="_self">writes</a>.

Axios Denver, anchored by John Frank and Alayna Alvarez, is here to help readers get smarter, faster on the most consequential news and developments unfolding in their own backyard.

Sections

Axios Local

Axios gets you smarter, faster with news & information that matters.

About

Subscribe

Worth Sparkman

Stories

Investment firms net 2 Arkansas properties in $500 million apartment deal

Tyson Foods to shift Illinois and South Dakota workers to Springdale HQ

Northwest Arkansas is low on commercial space

Attainable housing relief for Northwest Arkansas on horizon

4 Colorado towns among nation's top 25 most dynamic micropolitans

Newsletter editions

💰 Investors grab apartments

🏢 Tight commercial market

🏠 Building more homes

State voter amendment

🏆 Small town successes