Market growth in Northwest Arkansas is on the upswing, which is why Ferstl Valuation Services has opened a second office in Fayetteville with all of the same services available through our Little Rock office.
As of January 2014, the area primarily comprised of Fayetteville, Springdale, and Rogers is the second highest for short term job growth in the country. Forbes listed the region #28 of 200 for “The Best Places for Business and Careers.” This area also received high marks from the Milken Institute in 2013 for current job creation, and was ranked 34th in the nation over the past 5 years. The area has created 6,176 or 94% of all Arkansas’s new jobs during the past 24 months, which makes this area a hotbed of activity for entrepreneurs, employees and those interested in making profitable investments.
Ferstl Valuation Services operates on the vanguard of the most profitable and high growth markets in the country. The recent growth means the new office is starting at the perfect time to help your portfolio grow in the Fayetteville-Springdale-Rogers metropolitan area. With so many opportunities for interested investors, this region is ideal.
Tax and Income Recovery
The Great Recession of 2008 rocked the country, and many investors lost fortunes in diverse asset classes. Some of the hardest hit areas were those involving real estate. Out of the entire US, the Pew Charitable Trusts, a non-profit organization that funds grants to improve public policy, found that only 14 states have recovered from the Recession from a tax and income perspective. Arkansas has done particularly well, being not only among the states that have recovered but having seen actual tax revenues climb by 3.8%. With increased tax revenues come increased potential for the government to take proactive measures that further help recover the area. These improvements can include tax incentives for new businesses.
While an Arkansas commercial appraiser might not point directly at better infrastructure as a driver of economic growth, improvements in transportation generally lead to improvements in commerce. Ferstl’s presence in the area is buttressed by the existing improvements to the Bella Vista Bypasses at the I-540 interchange and US 71 completed in 2013. Further, even the most conservative investor should be encouraged by the upcoming improvements to Highway 34 and the Springdale Northern Bypass. The area should continue to improve through infrastructural construction sites planned through 2015.
Arkansas, Land of Opportunity
The northwestern Arkansas rental market is extremely robust, and it shows signs of continuing an upward trend. The Cardinal is a 150-unit student complex currently under development, and a further development called Harvey’s Hill has recently been approved for construction across Duncan Avenue. The rental market in Fayetteville continues to grow with both students and many young professionals due to new opportunities presented by the robust overall economy and the increase in student enrollment at the University of Arkansas.
Another key indicator of market opportunity is evident in the rising employment rate, with the sectors of education, health, leisure, and hospitality experiencing the most growth. Last year, Krushiker Hospitality Group Inc. broke ground on the first new hotel in Fayetteville in almost five years with the construction of a $12 million Hilton Garden Inn. A knowledge-based economy is clearly emerging, with strategic partnerships in place between researchers, business owners, education advocates, and public policy makers who are making decisions based on emerging technology to create economic value in this area.
It can be tempting to perceive a high growth area as guaranteed profit, but you would be wise to tread carefully in even the best areas. Investing without a full suite of information runs the risk of leaving money on the table and overpaying for an investment. Speak with a certified commercial appraiser at Ferstl Valuation Services for the inside details on investing in this area, and request an appraisal from an Arkansas commercial appraisal firm who can offer a trusted, fair, and accurate assessment of a potential property investment.