What's Missing in Northwest Arkansas?

[mcheiss]

I wonder where a 40 Story Wal-Mart Building could go. Pinnacle? Downtown Bentonville? Existing Facility?

It's a neat concept, but I don't think Wal-Mart will do it anytime soon. You are right that we should ask Wal-Mart to renovate their image in Bentonville. I think Wal-Mart would like it, but they are too focused on other issues.

[Mith242]

Wal-Mart is changing their image... when they build new stores in nicer parts of town they work with the community to build their store to match the image the community maintains. As for being tight with money why is Wal-Mart spending millions of dollars on LCD television screens at every checkout lane in their Supercenters? Maybe if our communty asks Wal-Mart to renovate their image in Bentonville they may consider it. Besides, Wal-Mart just announced yesterday on nationwide TV that they are going to upscale their products so why not upscale their Home Office.

I'm not saying they would do it, but being a Wal-Mart vendor I know that Wal-Mart keeps running out of room in their Home Office and the David Glass building on Moberly. They never plan ahead for growth and now growth is catching up to them. One would think a 40 story office building would allow them to grow exponentially and also allow some of their favorite vendors and suppliers to lease space on the lower floors of the building.

Spending money upgrading things in the stores if different than building a new headquarters though. A new headquarters isn't likely to get them anymore business. Even if they do go for a new headquarters I'm not so sure they would build up. In some ways I hate thinking about it too much because I wonder if they might still eventually consider leaving NWA. Going to another area for their headquarters could be seen as changing their image too. But anyway I can't say I know Bentonville very well but it doesn't seem the type of city to suddenly want a 40 story tower in the city. They'd probably be more likely to go for something like a twin 20 story buildings. Or basically something more along those lines, maybe even lower.

[Aporkalypse]

I hope Wal-Mart never builds a 40-story office tower as its HQs because if it does, I have a feeling the office building would be in DFW somewhere.

I could see an office complex similar to what Alltel did in LR but on a grander scale but ultimately building a fancy, expensive office complex is against what Wal-Mart ultimately stands for.

[mcheiss]

I hope Wal-Mart never builds a 40-story office tower as its HQs because if it does, I have a feeling the office building would be in DFW somewhere.

I could see an office complex similar to what Alltel did in LR but on a grander scale but ultimately building a fancy, expensive office complex is against what Wal-Mart ultimately stands for.

Walmart could use a giant complex. All of the Offices are spread out over Bentonville and in the NWA Metro. It would save a lot of wasted time traveling between offices and warehouses.

[Mith242]

I could see Wal-mart building a bigger complex but I'm with Aporkalypse. They aren't going to do anything particularly fancy because they didn't get to where they are by being that. I also agree on the idea of them building a tall headquarters. If that's more the direction they're going for then they probably are going to start considering a move out of NWA also.

[tim2462]

I think NWA is missing a whole bunch of high-rise apartment and condo buildings all around Beaver Lake!

Let's get them built.

[masons_dad1]

I could see Wal-mart building a bigger complex but I'm with Aporkalypse. They aren't going to do anything particularly fancy because they didn't get to where they are by being that. I also agree on the idea of them building a tall headquarters. If that's more the direction they're going for then they probably are going to start considering a move out of NWA also.

The Wal-Mart vendors have already stated that they are hesitant to move into fancy office buildings because they don't want to offend Wal-Mart. The Bentonville Plaza may have a concierge but the developers were smart keeping the building's aesthetics toned down with the red brick and glass exterior.

[Mith242]

The Wal-Mart vendors have already stated that they are hesitant to move into fancy office buildings because they don't want to offend Wal-Mart. The Bentonville Plaza may have a concierge but the developers were smart keeping the building's aesthetics toned down with the red brick and glass exterior.

I hadn't even thought if things like that. Not wanting it to look like they were showing up Wal-mart. Smart move because if anyone did make Wal-mart mad, boy that would be a huge business mistake.

[mcheiss]

The Wal-Mart vendors have already stated that they are hesitant to move into fancy office buildings because they don't want to offend Wal-Mart. The Bentonville Plaza may have a concierge but the developers were smart keeping the building's aesthetics toned down with the red brick and glass exterior.

They could have done such a better job with that building. I don't like how they designed the building's glass in sections of three, so it doesn't look like a 9 story building.

[Mith242]

They could have done such a better job with that building. I don't like how they designed the building's glass in sections of three, so it doesn't look like a 9 story building.

Got any pics of it? To be honest I haven't really seen it.

[mcheiss]

Got any pics of it? To be honest I haven't really seen it.

[Mith242]

Thanks for the pics Matt, now I see what you're talking about too.

[mcheiss]

If they would have gone more for a traditional architecture style, with all 9 floors being seen, then I would be a bit happier with it.

[masons_dad1]

If they would have gone more for a traditional architecture style, with all 9 floors being seen, then I would be a bit happier with it.

There were plans to build a second tower at Bentonville Plaza with a park-like grounds around them, so you may yet see a "real" 9-story Bentonville Plaza.

[mcheiss]

^There's actually plans for 3 more skyscrapers in the Bentonville Plaza, which is suppose to be 2 more office towers and one hotel tower. All are suppose to be 9 floors, but I'm not sure when they are going to be completed.

[masons_dad1]

^There's actually plans for 3 more skyscrapers in the Bentonville Plaza, which is suppose to be 2 more office towers and one hotel tower. All are suppose to be 9 floors, but I'm not sure when they are going to be completed.

Thanks for the update, Matt! I'm sure those poor folks working at the Wal-Mart Home Office are going to appreciate working in that decrepit old red brick mausoleum when there are 3 much nicer office buildings right across the street. At least they won't be able to see them since the Home Office doesn't even have windows facing them.

[mcheiss]

Yes, I would much rather be in the Vendor Tower than in the HQ.

Those are just conceptual Plans as well that E&S has proposed for Bentonville. It could take 10 years for all the towers to be done, based on supply and Demand.

[masons_dad1]

On the Subject... NWA needs a big name entertainer to perform here and I don't mean at the Annual Wal-Mart Shareholders Meeting. Garth Brooks would be good one or maybe Shania Twain.

[mcheiss]

On the Subject... NWA needs a big name entertainer to perform here and I don't mean at the Annual Wal-Mart Shareholders Meeting. Garth Brooks would be good one or maybe Shania Twain.

Whenever the Large Multiuse Facility is completed with the Minor League Stadium in Springdale, we will be able to attract large concerts to the area hopefully.

[masons_dad1]

Whenever the Large Multiuse Facility is completed with the Minor League Stadium in Springdale, we will be able to attract large concerts to the area hopefully.

Let's hope the bubble doesn't bust before we at least get a baseball team... the one thing I fear most is that with all the development in this area and nothing being completed before 2007 except lots of expensive homes is that if the bubble does bust then all we'll have to show for it is a bunch of expensive homes that won't sell anyways.

[tim2462]

I don't think there is a bubble in NWA that's going to bust...that area defies all trends, everywhere. As long as the big companies stay there and vendors keep coming, that area will be fine. I read that only a handful of vendors have moved into the area and that there are thousands of vendors that will be moving in over the next several years.

[mcheiss]

Let's hope the bubble doesn't bust before we at least get a baseball team... the one thing I fear most is that with all the development in this area and nothing being completed before 2007 except lots of expensive homes is that if the bubble does bust then all we'll have to show for it is a bunch of expensive homes that won't sell anyways.

Yeah, I don't think the bubble is going to bust for a while, take a look at Pinnacle. They wouldn't be investing there, if the bubble was bursting.

[masons_dad1]

I don't think there is a bubble in NWA that's going to bust...that area defies all trends, everywhere. As long as the big companies stay there and vendors keep coming, that area will be fine. I read that only a handful of vendors have moved into the area and that there are thousands of vendors that will be moving in over the next several years.

Yeah, I don't think the bubble is going to bust for a while, take a look at Pinnacle. They wouldn't be investing there, if the bubble was bursting.

The NWA Bubble:

*In the 1990's NWA experiences increased population growth mainly due to the low unemployment rate

*New homes and Sub-Divisions start popping up to meet population growth

*In 2000 Wal-Mart starts demanding lower prices from Suppliers to defeat the rising inflation

*Tupperware contests Wal-Mart's demands and ALL Tupperware products are pulled off the shelves

*In 2001 Tupperware reports a 25% loss in sales revenue causing Wal-Mart's Suppliers to panic

*Wal-Mart's Suppliers (including Tupperware) start sending jobs overseas to meet Wal-Mart's demands

*Hundreds of Suppliers start building satellite offices in Bentonville to improve relations with Wal-Mart

*There is an increase in new upscale homes and sub-divisions being built in NWA

*Wal-Mart demands even lower prices from Suppliers

*Suppliers start relocating their top sales and marketing executives to NWA

*There is another increase in new upscale homes and sub-divisions being built in NWA

*NWA business leaders start buying millions of acres of land to prepare for the increased demand for land

*Analysts come to NWA and report retail opportunities are 75% below the National Average

*NWA business leaders start building major retail developments in NWA

*News spreads about the growth in NWA and people from around the country start relocating to NWA

What is the most important factor in this equation that if removed will bust the bubble?

[tim2462]

The NWA Bubble:

*In the 1990's NWA experiences increased population growth mainly due to the low unemployment rate

*New homes and Sub-Divisions start popping up to meet population growth

*In 2000 Wal-Mart starts demanding lower prices from Suppliers to defeat the rising inflation

*Tupperware contests Wal-Mart's demands and ALL Tupperware products are pulled off the shelves

*In 2001 Tupperware reports a 25% loss in sales revenue causing Wal-Mart's Suppliers to panic

*Wal-Mart's Suppliers (including Tupperware) start sending jobs overseas to meet Wal-Mart's demands

*Hundreds of Suppliers start building satellite offices in Bentonville to improve relations with Wal-Mart

*There is an increase in new upscale homes and sub-divisions being built in NWA

*Wal-Mart demands even lower prices from Suppliers

*Suppliers start relocating their top sales and marketing executives to NWA

*There is another increase in new upscale homes and sub-divisions being built in NWA

*NWA business leaders start buying millions of acres of land to prepare for the increased demand for land

*Analysts come to NWA and report retail opportunities are 75% below the National Average

*NWA business leaders start building major retail developments in NWA

*News spreads about the growth in NWA and people from around the country start relocating to NWA

What is the most important factor in this equation that if removed will bust the bubble?

Wal-Mart will never leave NWA

[masons_dad1]

Wal-Mart will never leave NWA

No way... I agree Wal-Mart will never leave NWA. In the event that Wal-Mart's Vendors and Suppliers decide their relationship with Wal-Mart doesn't necessitate continued operation in NWA and they pull out then the bubble will bust.

On the other hand as long as there are Vendors and Suppliers in NWA more will keep coming to NWA, which brings many other businesses and developments to NWA. So if one day the Vendors and Suppliers decide to pack up and leave NWA will be strong enough to continue growing without them. Although all those top executives would leave and home values would drop, much the way they did in Dallas during the IT bubble bust.