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acancies in Northwest Arkansas commercial real estate climbed to 7.2 % in the first half of 2025, the highest level since 2021, the latest Skyline Report shows. “While low vacancy rates are usually a sign of strength, in a fast‑growing market like ours they can also signal limited supply,” said Mervin Jebaraj, director of the Center for Business and Economic Research at the Sam M. Walton School of Business. The bi‑annual report, sponsored by Arvest Bank, highlights a healthy market with robust building‑permit activity spread across the region.

    Permit values for the first six months reached $290.2 million, a 48.3 % jump from the $195.7 million recorded in the second half of 2024. Walmart’s new corporate headquarters contributed $14.2 million, or 4.9 % of the total, the retailer’s largest share since the first half of 2023 (13.1 %). Excluding Walmart, permits still totaled $276 million, up from $190.3 million in late 2024. Gene Gates, Arvest Bank’s executive vice‑president and loan manager, noted that the permits “continue to show the region is expanding and balanced,” and praised the bank’s commercial‑lending teams for supporting development.

    Office vacancies edged up to 6.8 % from 6.3 % in the previous period. The market saw 7,840 sq ft of new office space and over 100,000 sq ft of previously owner‑occupied space enter the supply pool. Lowell experienced the largest office vacancy increase, rising 28 % from zero at the end of 2014, and added 95,231 sq ft of new office space, compared with 3,845 sq ft available in the first half of 2024.

    Retail vacancies grew moderately to 6.6 % from 4.9 % in the second half of 2024. Twenty‑three thousand nine hundred thirty‑two square feet of new retail space entered the market, yet the sector absorbed a net negative 149,920 sq ft, largely due to national retailers closing or relocating. Rogers reported 396,453 sq ft of retail space available, up from 257,675 sq ft in the prior period.

    Warehouse vacancies increased to 10.4 % from 7.6 %. Thirty‑eight thousand four hundred square feet of new warehouse space entered the market, but the sector absorbed a net negative 392,251 sq ft. About 400,000 sq ft of warehouse space was vacated, largely from a single company leaving a 300,000‑sq‑ft lease. Siloam Springs’ warehouse vacancy rate rose to 32.4 % from 28.6 %. Springdale saw the largest rise in available warehouse square footage, reaching 413,743 sq ft in the first half of 2025, up from 194,765 sq ft at the end of 2024. Additionally, 75,414 sq ft of new retail/warehouse space was added, reflecting ongoing demand for flexible warehouse solutions.