Commercial real estate in OKC, industrial, office, retail, doing well
“Record” warehouse distribution, recovery for office buildings, “hope” for stores – CBRE knows how to write attention-grabbing headlines.
The good news has more to do with real estate. It means jobs and investments. And business growth.
“Oklahoma City is experiencing record-breaking trends in its industrial sector,” read a headline.
“Oklahoma City’s office sector is recovering as vacancy falls and absorption rises,” says another.
And then there is “2021 brings hope and economic normality to OKC retail”.
Pandemic or not, the commercial property markets are in pretty good shape here. Here are the highlights from CBRE’s semi-annual reports on the office, industrial and retail sectors.
The source podcast:Real estate, retail market on pandemic roller coaster
Oklahoma City Industrial Zone
• Between 2010 and 2020, Oklahoma City’s warehouse distribution sector grew 56%, or 10,000 jobs, outperforming the state by 33% and the nation by 21%.
• “E-commerce and on-demand delivery services are now $ 4.2 billion, or 5.5% of total GDP on the Oklahoma City subway.”
• Cannabis still inhales industrial areas.
• More and more companies are turning to build-to-suit real estate, which is driving demand for industrial space.
• “The first half of 2021 brought some challenges but overall great success for Oklahoma City’s industrial sector as vacancy continues to decline and absorption, completions and construction continue to rise.”
• Industry statistics at mid-year: Vacancy rate 2.9%; Net intake, 533,000 square feet; Average asking rent annually, $ 6.15 per square foot per year, triple net (renter pays property insurance, property taxes, maintenance, and utilities); under construction, 1,699,081 square feet; Completed in the first half of the year, 193,811 square meters.
More:Carvana Approved For State Incentives Set To Create 350 Jobs In Oklahoma City
Office space in Oklahoma City
• “The first half of 2021 saw a massive rebound in office rentals and sales, not to mention an absorption of 141,838 square feet – the highest in the city’s office sector in recent years.”
• Asking rents fell “as a continuing effect of the pandemic”, but vacancies fell and absorption increased.
• The cost of building materials shot up by 25-45%, “and there were significant delays in transactions, tenant improvements and new construction times.”
• “As the economy stabilizes and tenants feel more comfortable, we can expect an increase in the rate of office letting and long-term leases.”
• Office statistics at mid-year: Vacancy rate 17.4%; Net intake, 141,838 square feet; annual median asking rent, $ 18.03 per square foot per year; under construction, 150,722 square feet; completed in the first half, 205,022 square feet.
The story continues below.
Oklahoma City retail space
• Occupancy remained stable at 92%, recording positive absorption for the first time since before the coronavirus pandemic.
• “The demand for restaurants and travel is growing faster than businesses can keep up with the workforce, bringing relief to a hard-hit corner of the job market.”
• Hotels and motels saw the largest increases in the construction sector.
• “Since January 2021, several large retailers have opened, expanded or announced development plans.”
• Mid-year retail statistics: Vacancy, 8%; Net intake 306,698 square feet; annual median asking rent, $ 18.03 per square foot per year; under construction, 227,806 square feet; completed in the first half, 115,742 square feet.
You’re really fine, Oklahoma.
Richard Mize has been serving, residential, construction, commercial and related issues for the newspaper and Oklahoman.com since 1999. Contact him at [email protected]