Conway continues to draw strong interest from investors, site selectors, and growing industries, but community leaders say smart planning and a renewed focus on housing and talent development are needed to sustain the city’s momentum.
At FAB&T Outlook Conway, the Colliers Arkansas: State of the Market panel offered a deep dive into current trends in the local and regional economy. Panelists included Isaac Smith, president of Colliers Arkansas; Jamie Gates, executive vice president of the Conway Area Chamber of Commerce and Conway Development Corporation; and Brad Lacy, president and CEO of the Chamber and CDC. The discussion was moderated by Mitch Bettis, owner and president of Arkansas Business Publishing Group.
Together, they unpacked economic indicators, discussed commercial market dynamics, and outlined what Conway must do to remain competitive in the coming years.
A Market Still on the Rise, But Facing New Signals
Jamie Gates opened the conversation with a data-driven overview of Conway’s current economic position. Faulkner County’s unemployment rate sits at 2.9%, well below the national average. Median household income has risen to $68,500, up from around $53,000 just five years ago.
However, Gates flagged concerning trends, including a rare decline in city sales tax revenue and a drop in new housing starts.
“We’re not used to seeing negative sales tax growth,” Gates said. “And housing starts are a concern. We know demand is coming, but we may not be ready to meet it.”
Industrial and Retail Markets Remain Strong
Isaac Smith of Colliers Arkansas broke down commercial real estate trends by sector. Industrial absorption remains strong in Conway, with vacancy rates hovering around 5%, a healthy number for continued growth. Lease rates are up as well, at roughly $6.50 per square foot, exceeding the Little Rock metro average.
Smith cited recent large-scale deals, which absorbed over 280,000 square feet of industrial space in the past year. A new 400,000-square-foot spec development is expected to lease quickly, reinforcing Conway’s reputation as a preferred destination for industrial users.
In retail, restaurant-driven growth continues to lead the way.
“People in Conway like to eat,” Smith said, noting recent deals like Chuy’s and others still under wraps.
Office space, meanwhile, continues to lag nationally, but Conway has proven more resilient, with a vacancy rate around 7% compared to 10% metro-wide. Smith said that presents an opportunity for new development as the office market begins to rebound nationally.
Talent, Housing, and Workforce Remain Linked
As companies continue choosing Conway, community leaders are focused on preparing the local workforce. One initiative: Launch Conway, a hands-on career awareness event launched last year by the Conway Area Chamber of Commerce for junior high students.
Over 2,500 students participated in the program’s first year, exploring careers through interactive exhibits ranging from construction and technology to healthcare and manufacturing.
“We can’t wait until kids are 17 to start talking about career options,” Gates said. “This gives them a meaningful look at the jobs that exist in Conway, and gets local companies directly involved in building that awareness.”
Housing was another major topic, with Brad Lacy noting that Conway’s ability to grow its population — and by extension its workforce — is directly tied to the availability of single-family home sites. A housing study commissioned by the chamber in 2024 confirmed a future shortage of both homes and residential lots unless policy shifts or infrastructure investments are made soon.
“Today’s housing shortage is tomorrow’s workforce shortage,” Lacy said. “We have to make decisions now about where we want to grow and how we want to grow.”
Conway’s Competitive Edge and What Comes Next
The panelists pointed to Conway’s unique combination of quality planning, city policy, and civic investment as key differentiators. From street design and architectural standards to access to utilities and incentives, Conway has earned a reputation as one of the most business-friendly cities in the region.
Lacy emphasized that this success is the result of decades of intentional decision-making by elected officials and citizens willing to invest in the community.
“We didn’t get here by accident,” he said. “This city has prioritized quality over quantity, and now we’re seeing the return on that investment.”
That reputation helped Conway land on U.S. News & World Report’s 2025 list of the Top 100 Best Places to Live in the U.S., ranked at No. 89. Lacy called the recognition “validation” of the city’s long-term approach and said it will be a key marketing point for talent and business recruitment.
Opportunity and Urgency
Looking ahead, panelists said Conway’s economy is well-positioned but must navigate several inflection points. Chief among them is capitalizing on major industrial projects in the pipeline — including a potential multi-billion-dollar data center — and ensuring the city doesn’t lose momentum due to housing constraints or workforce shortages.
“There’s no guarantee we stay on this path,” Lacy said. “It’s going to take continued planning, smart growth, and a willingness to have tough conversations.”
Smith echoed that sentiment, noting that his team sees Conway as one of the strongest commercial markets in the state, but only if the city stays proactive.
“In real estate and economic development, the opportunity is always shifting,” Smith said. “The communities that stay ahead of the curve are the ones that succeed.”
FAB&T Outlook Conway was presented by Landmark CPAs and Smith Ford. The panel was sponsored by Colliers Arkansas and the Winthrop Rockefeller Institute.