<body><div><figure><img src="https://img.particlenews.com/image.php?type=thumbnail_580x000&amp;url=3TjgjV_1FDPHLpz00" alt="https://img.particlenews.com/image.php?url=3TjgjV_1FDPHLpz00" width="1200" height="630" ></figure>Every couple of weeks, my phone rings with the same conversation. An investor from Colorado, Southern California, or the New York metro is selling a commercial building that no longer performs like it used to, whether an office building, shopping center or warehouse.Values slip, financing is expensive, insurance premiums go up at every renewal. They keep hearing about one place: Northwest Arkansas.It’s more than hype; the data backs it up.Northwest Arkansas has something interesting these investors aren’t seeing at home: new people. According to Atlas Van Lines (and who better to ask than a moving company?), Arkansas ranked No. 1 for inbound migration two years running, and our metro is the ninth-fastest-growing in the country, adding about 40 residents a day toward 1 million by 2050. Population drives rooftops, rooftops drive commerce, and commerce fills commercial real estate.Let’s dig into the local data. The latest Arvest Skyline Report, out in August, shows overall commercial vacancy up only slightly, to 7.6% from 6.4%, even after a million-plus square feet came online. Warehouse vacancy rose to 9.7% (due to everyone jumping on the flex-space wagon), retail held at 6.0% and office sits at 8.1%.When a lot of new supply hits and vacancy barely moves, that signals solid demand. What creates the short-term negative data is the fact developers all read the same reports, spot the same demand and race to be the one who meets it. Developers deliver too many projects at nearly the same time. A little coordination and staggered deliveries would be healthier, but staggering and communication aren’t as fun as beating a competitor to market. The little traffic jams are often self-inflicted; the demand is real.That said, it’s still easy for an outside investor to understand they can sell a fully priced or distressed asset in a bigger market, use a 1031 exchange (rolling proceeds into a replacement property to defer capital gains tax) to redeploy into a market still absorbing what it builds. When rents stall and renewals trade down, Northwest Arkansas looks like a great place to put capital to work.I’m watching one of my agent’s clients live this right now. David Spriggs of DMS Real Estate, a Denver-based investor we’ve represented, has closed on roughly $12 million of Northwest Arkansas real estate in the last 60 days as he increasingly directs investment capital toward the region.“We’re excited about the long-term growth and investment dynamics in Northwest Arkansas,” Spriggs said. “The fundamentals we’re seeing in the market support our decision to continue investing and growing our portfolio in Northwest Arkansas.”He’s not alone, and local owners should take note. Outside capital validates our valuations, funds new construction, and deepens the buyer pool. It also raises the bar. A local buyer may see a deal that traded for far less money a few years ago and call it overpriced. I’ve literally had clients pass on deals because they feel ‘so-and-so’ who bought the property a few years ago is going to make too much money if they pay ‘X’ for it. Out-of-state buyers don’t play that game. They check the fundamentals and put their offer on the table. They go enjoy a nice mountain bike ride. They know their bet is a good one long term.None of this is a bubble. It’s the predictable result of a decade of growth: the world’s largest retailer, three Fortune 500 headquarters and a quality of life that keeps people here. People come expecting a market tour and leave realizing this isn’t just a great place to invest; it’s a great place to live. There’s a gravity here, and it’s not going away.Editor’s note: Grady Mathews is principal broker and owner of Genesis Commercial, a Rogers-based commercial real estate brokerage. The opinions expressed are those of the author.</div></body>

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Every couple of weeks, my phone rings with the same conversation. An investor from Colorado, Southern California, or the New York metro is selling a commercial building that no longer performs like it used to, whether an office building, shopping center or warehouse. Values slip, financing is expensive, insurance premiums...

Out-of-state investment is following the moving trucks

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Every couple of weeks, my phone rings with the same conversation. An investor from Colorado, Southern California, or the New York metro is selling a commer

Out-of-state investment is following the moving trucks

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