Why Arkansas is a Top Choice for Growing Distribution Centers

Why Arkansas is a Top Choice for Growing Distribution Centers Main Photo

30 Mar 2021


News

Arkansas is a top choice for retailers and growing distribution centers due to a central location in the middle of the United States, an available workforce, low cost of doing business and affordable sites. There were over 3,300 more distribution centers in 2019 than in 2010, and the industry is on a continued growth trajectory. As a result of the e-commerce boom, distribution centers are the next physical retail center of the country - just spread out and in locations that are convenient for semi-trucks instead of local shoppers. Arkansas is the destination of choice for this growing industry. 

Arkansas has the workforce

The warehousing industry employs over 6 million people in the U.S. Attracting these workers is critical to the industry and is often challenging in major metropolitan areas where competition for workers is fierce. In many of the communities served by the Electric Cooperatives of Arkansas, a distribution center moving in would provide a boost to the local economy and be attractive for residents looking for a stable and long-term career in a growing industry. 

Arkansas has warehousing space and sites

Real estate giant, CBRE released a report in which they said, “...demand for light-industrial warehouses of less than 120,000 sq. ft. will accelerate as e-commerce companies race to offer same-day delivery to customers. These properties have seen rents rise by 30% in the past five years, whereas big-box rents rose by 15%. Considering that space is very limited in the smaller-size segment, rent growth is expected to continue over the next 12 months.” Arkansas can be a destination for these smaller online retailers who need warehouse and distribution space, but not the huge warehousing being produced on spec.

Our available sites can be found here. They include the Helena Harbor and Industrial Park, the Lawrence County Megasite, the REDI Arkansas Manufacturing Center and the old Danfoss Building in Clark County.   

Arkansas is affordable 

Companies don’t want to, or can’t, pay a premium for warehousing space. They need large, modern facilities with good access at an affordable price. Arkansas has many sites that fit the bill. It’s possible to purchase commercial acreage for as little as $5,000 an acre

Arkansas has the 3rd lowest cost of doing business in the United States and Area Development ranked Arkansas number 14 on its 2019 "Top States for Doing Business" list. It’s no wonder that Arkansas is attractive for growing retailers and distributors.

Contact us today for help finding a site in Arkansas or for more information.