Cognizant | Bentonville, AR
INDUSTRY-LEADING TENANT WITH STRONG FINANCIALS
Cognizant Technology Solutions was founded in 1994 as the technology development arm of The Dun & Bradstreet Corporation and spun off as an independent company in 1996. They specialize in IT services by automating business processes and modernizing technology infrastructures. While not rated by Standard & Poor’s, they do have a credit rating of AA- by Egan-Jones Rating Company. The company is publicly traded on the NASDAQ under the ticker CTSH, and, as of December 31, 2019, CTSH had Revenues of $16.78 Billion, a Net Income of $1.84 Billion and a Tangible Net Worth of $9.98 Billion.
COMMITMENT TO LOCATION
The Tenant occupied this space in 2009 and they have gone through a series of lease extensions with the most recent being on January 6, 2020. The Tenant extended their lease thru July 2025 while increasing their rents with annual rental increases. The Bentonville Submarket of Northwest Arkansas continues to be an area of high demand for companies. With Walmart as the premier tenant and its plans to build a world-class headquarters in the coming years, many of its suppliers continue to take up space.
STRONG MARKET FUNDAMENTALS AND DEMOGRAPHICS
The Tenant is paying below market office rents of $15.50 PSF while market rent is over $20.00 PSF. In 2020, office vacancy hit an all-time low in Northwest Arkansas and is currently at 6.3%. Northwest Arkansas is a high growth market with annual population growth of 2% and a population base of 525,000 people in the MSA. The region is home to several anchor tenants within 25 miles of the property, including: Walmart Headquarters (Bentonville), Crystal Bridges Museum (Bentonville), Tyson Foods Headquarters (Springdale), JB Hunt Transport Services Headquarters(Lowell) and the University of Arkansas (Fayetteville).
HIGHLY STRATEGIC LOCATION IN NW ARKANSAS
The subject property is located just off a signalized intersection and 2 miles west of Interstate 49 (77,000 VPD). It is also directly next to the Bentonville Municipal Airport and 2 Miles from the Walmart Headquarters. The Northwest Arkansas Regional Airport is less than 10 miles away and is served by Allegiant, American, Delta, United and Frontier Airlines. The property is in the growth corridor of Bentonville and is surrounded by retailers, new multi-unit housing units and single-family homes.
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The information contained herein has been obtained from sources deemed reliable or implied, is made with respect to such information. Terms of sale or lease and availability are subject to change or withdrawal without notice.