Fayetteville

Fayetteville has been seeing a slowing population growth over the past five years. The limited population growth has led to the a limited amount of new inventory, resulting in a 8.7% y-o-y increase in rents. Fayetteville’s steady returns has been the driving factors in national investors moving to this market, around $508 million has closed in the last 12 months.

The Cap rate in Fayetteville is around 5%. For high performing properties, but with the limited amount of inventory avalible, investors are looking to the value add opportunities in the area. The majority of the Fayetteville market is mostly low density properties even in the Downtown metro area.

The area has started seeing new market drivers such as the redevelopment of downtown, the addition of the new bus terminal and Segra Stadium home to the Woodpeckers Fayetteville’s minor league baseball team.