Commercial real estate in Conway is outpacing much of the broader central Arkansas metro, fueled by population growth, university enrollment, prime interstate access, and a surge of national brands betting on the market.

Retail has led the charge, according to TJ Johnston, vice president for the Conway market at Colliers. National and fast-casual chains have been among the most active, with Chuy’s and Olive Garden among recent arrivals.

“Vacancy dropped two full percentage points last year, reflecting strong absorption and sustained tenant demand,” Johnston said.

Second-generation retail space has also seen heavy activity. Aldi filled the former Bed Bath & Beyond location, and Ollie’s leased the space previously occupied by Big Lots, a pattern Johnston says reflects how efficiently the market is recycling existing inventory.

Industrial demand is building alongside retail. Mid-sized spaces ranging from 25,000 to 50,000 square feet are drawing the most interest, Johnston said, while smaller flex and industrial spaces between 10,000 and 20,000 square feet remain competitive as new businesses enter the market and established ones expand.

“Conway stands out from the broader metro in several ways,” Johnston said. “Strong retail growth is attributed to overall population growth and a large student population at UCA, Hendrix and CBC.”

Investor confidence is tracking the tenant activity. Several retail properties, including Faulkner Plaza, have traded recently at prices Johnston says reflect a growing belief in Conway’s trajectory.

“We are increasingly attractive for industrial and logistics uses due to our amazing access to I-40, one of the nation’s busiest shipping routes, and our proximity to Little Rock without the same land constraints that the capital city is experiencing,” Johnston said.

The most consequential development may still be ahead. A Fortune 100 company recently announced plans to invest $1 billion in a data center in southwest Conway, positioning the city within the rapidly expanding cloud computing and artificial intelligence infrastructure sector.

The breadth of that demand is visible at Centerstone, a 35-acre mixed-use development along Dave Ward Drive being finished by Engage Management, a Conway-based firm. The project has attracted a wide cross-section of tenants: quick-service and full-service restaurants, medical users, service businesses and traditional retail. Its tenant roster spans a food truck operator opening its first brick-and-mortar location, local independents, regional chains, national brands and at least one company with an international footprint, said Brent Salter, president of Engage Management.

“The scale of prospects and tenants is very diverse,” Salter said.

Engage Management develops in multiple Arkansas cities and in other states, but Salter said Conway occupies a different standing for the company. He described the built environment as having a deeper impact on daily life than most people recognize , a responsibility he said Engage takes seriously in its home market.

“No place is like Conway,” Salter said. “It is important to us not only to provide a quality product, but also to ensure it makes the community a better place to live and work for everyone.”