Northwest Arkansas office vacancy rate among tightest in U.S.

The big picture: National office vacancy rates closed 2025 between 18.2% and 20.5%, per real estate companies Colliers and Cushman & Wakefield. Office vacancy rates have largely decreased in Northwest Arkansas over the last decade.

State of play: Sage Partners of Rogers highlighted key trends in its market report, released Wednesday:

Office — The 4.6% vacancy rate is up slightly from the company's Q2 report, which noted a 15-year low of 4% at the time.

• Average asking rent is $26.39 per square foot, compared with $38.37 nationally.

Industrial — Warehouse space was near zero in 2022, but overall industrial vacancy is now 6.4%, with asking rents at $9.60 per square foot.

• Tenants are leaving older warehouse spaces to move to modern facilities in strategic locations, the report said.

Retail — Retail vacancy is at 3.2%, below the national level of about 4.3%, with average rents of $19.76 per square foot.

Multifamily — The multifamily housing vacancy rate is 11.2%, up from 8% in the company's Q2 report. The average asking rate per unit is $1,216.

• Prices for single-family homes have surged in recent years, according to the Arvest Skyline Report and a recent Walton Family Foundation study.

What they're saying: "Even as certain sectors absorb new supply, fundamentals across the market remain healthy and well-positioned for long-term stability," Cushman & Wakefield Sage Partners CEO Marshall Saviers said in a news release.

The bottom line: Northwest Arkansas' commercial real estate market remains fundamentally strong, with exceptionally tight office and retail sectors. The industrial market is absorbing new space, while multifamily is stabilizing following a construction surge.