Market Reports

Spotlight on Tulsa: A Hidden Gem for Commercial Real Estate Investors

by Taylor Williams March 8, 2022

By Lanie Beck, director of corporate research, marketing & communications, Stan Johnson Co. Situated on the banks of the Arkansas River in northeast Oklahoma’s Green Country, Tulsa is a hidden gem for residents, employers and commercial real estate investors. Once recognized as the oil capital of the world, Tulsa has become a growing economic base for a variety of industries, including energy, finance, aviation, telecommunications and technology. Attractions and features of the city include the historic Route 66, the Philbrook and Gilcrease Museums, an Art Deco-inspired downtown, the award-winning Gathering Place Park and a vibrant resurgence of intown neighborhoods. Business, Population Boom Tulsa’s central U.S. location and operating costs that run below the national average, as well as a cost of living that is one of the lowest in the country for metro areas, make it incredibly desirable for businesses of all sizes. To help drive awareness during the pandemic, the city launched a rejuvenation project called “Tulsa Remote” that provided financial bonuses to attract more affluent remote workers and enhance the city’s diversity and community. Tulsa’s attractive characteristics, combined with the metro’s active efforts, have contributed to a boost in population growth over the last few years. In 2021, …

March 8, 2022

Industrial Market Reports Oklahoma Texas Texas Market Reports

OKC Industrial Market Sees Record Development, Low Vacancy as 2022 Begins

by Taylor Williams March 1, 2022

By Randy Lacey, SIOR, senior vice president, CBRE | Oklahoma City; and Chris Zach, CPA, associate, CBRE | Oklahoma City Contrary to popular belief, the ongoing pandemic has been a boon to many aspects of the Oklahoma City economy. Industrial real estate growth has been more prominent than any other commercial sector. Those familiar with the city and surrounding area can vouch for the speed and intensity of housing demand and development, but industrial real estate has set itself apart over the last few years. OKC is Here to Stay Oklahoma City has a lot going for it. The market always has been well-positioned in terms of its central geographic location at the intersection of Interstates 35 and 40 and has seen tremendous growth and success in the last decade, with significant headway in the local industrial real estate market. The industry has proven its resiliency amid the pandemic and should continue to fare well into the future. But low costs of living and doing business have further bolstered the appeal of the community. In fact, Oklahoma City is only one of 14 cities across the country to add more than 100,000 people in the last 10 years, …

March 1, 2022

Market Reports Oklahoma Retail Texas Texas Market Reports

Far North Oklahoma City Retail Market Hits Its Stride

by Taylor Williams July 14, 2020

By Stuart Graham, Senior Vice President, CBRE; Mark Inman, Senior Vice President, CBRE; and Kendra Roberts, Associate, CBRE The Oklahoma City retail market has had a growing and changing landscape over the past few years as the sector’s healthy fundamentals continue to draw both local and national investors. Although much of the growth has been focused on the downtown Oklahoma City area, we are beginning to see a new hotspot emerge in the Far North neighborhoods. High-quality schools and affordable housing in the Far North Oklahoma City submarket of Edmond, as well as in the surrounding neighborhoods, have been major draws for young families. Both the Deer Creek and Edmond School Districts rank among the top three school districts in the state and also enjoy high national rankings. As a result of these residential and educational features that are attracting younger households and driving population growth, the Far North Oklahoma City submarket has recently seen a significant uptick in both retail investment and development activity that better support this underserved and growing community. To illustrate this submarket’s rise, consider the fact that nearly 20 percent of the total volume of retail product currently under construction in the Oklahoma City area …

July 14, 2020

Industrial Market Reports Oklahoma Texas Texas Market Reports

OKC Industrial Market Should Benefit From Rising Labor Costs Across Central U.S.

by Taylor Williams January 25, 2019

From a manufacturing perspective, Oklahoma City has historically been considered a “tertiary market” when stacked against South Central and Midwest power players such as Dallas-Fort Worth (DFW), Houston, Kansas City, San Antonio, Austin and Denver. As large manufacturing users consider multiple markets in the Central United States, Oklahoma City is often included in the initial list but typically fails to make the short list for various reasons. However, as labor costs rise, Oklahoma City may find itself being pushed to the front of the line. Past Misses Oklahoma City’s industrial market totals approximately 108 million square feet, making it a smaller market than DFW, Houston, Kansas City, San Antonio, Austin or Denver. Primarily driven by the oil & gas, aerospace and consumer goods industries, this market’s fundamentals tend to move in lockstep with oil & gas commodity prices. The city has tried to diversify the economy over the past decade and bring in non-oil & gas users. But there is still room for improvement. The metro has seen its share of growth; however, overall industrial construction still pales in comparison to larger markets. Growing Appeal The industrial booms seen in DFW, Houston, Kansas City, San Antonio, Austin and Denver over …

January 25, 2019

Market Reports Multifamily Oklahoma Texas Texas Market Reports

Investor Demand Rises for Apartment Assets in Oklahoma City

by Taylor Williams January 18, 2019

As expected and much anticipated, the global rise in oil prices has given the petroleum industry a significant boost and spurred Oklahoma City’s economic recovery. The resurgence, demonstrated in part by a three-year-high in hiring this year, is drawing out-of-state multifamily investors and bringing greater interest from companies looking to relocate or expand. In mid-October, FedEx more than doubled its warehouse space with the opening of a new 270,000-square-foot distribution facility in north Oklahoma City. The expansion came in response to the increase in outbound e-commerce volume, another indication that the local economy has turned a corner. Most of the new jobs created in Oklahoma City through September 2018 were professional and business positions. The sector grew by 4.4 percent year-over-year, easily the widest margin of any employment sector. Overall, the total number of jobs filled during that same period was 13,500, an increase of 2.1 percent. For the complete year, employers anticipate adding about 14,000 new positions. The rebound in hiring has led to the unemployment rate dropping to 3.2 percent, nearly its lowest level in a decade. Supply-Demand Balance The city’s economic recovery is particularly well-timed for multifamily investors, as it coincides with a reduction in the metro’s …

January 18, 2019

Market Reports Oklahoma Retail Texas Texas Market Reports

Oklahoma City Is Natural Landing Spot for Successful DFW Retailers

by Taylor Williams January 11, 2019

Retail real estate in Dallas-Fort Worth (DFW) is nearing its cyclical peak, and users that want to continue expanding in the metroplex are being hamstrung by a lack of quality space and surging rents. According to CoStar Group, DFW’s retail vacancy rate currently stands at 4.4 percent, a record low that the research firm expects to hold steady or even improve in the coming years. Rents have grown by more than 3 percent annually over the last five years, and are now 15 percent higher than their pre-recession peaks. Put simply, DFW is a landlord’s market. As such, retailers that have had success in the metroplex over the last decade and want to keep opening new stores should be considering other markets. One of the ideal landing spots for these users lies a mere 200 miles up Interstate 35 in Oklahoma City. According to CoStar, Oklahoma City’s retail vacancy has grown by approximately 100 basis points over the last two years, currently clocking in at 6.1 percent. There is very little new product under construction — less than half a million square feet — but asking rents in Oklahoma City average $14.40 per square foot, compared to $18.89 per square …

January 11, 2019

Market Reports Oklahoma Texas Texas Market Reports

Oklahoma City Multifamily Market Sales Reach $82.4 Million in Third Quarter

by Haisten Willis December 12, 2014

In the third quarter of 2014, the Oklahoma City multifamily market recorded 11 transactions totaling 1,537 units for a sales volume of $82.4 million. This is an average price per unit of $53,625. The third quarter experienced a significantly higher sales volume than the first quarter of 2014, increasing 305 percent. The total sales volume for 2014 overall has reached $182.7 million, which is 33 percent lower than the same time period in 2013, when the total sales volume was just over $272 million. However, the total units sold was down only 11 percent compared to last year, which indicates the quality of assets trading is lower than those properties trading in 2013. For example, in the first three quarters of 2013, just over $215 million in Class A properties were sold, compared to just over $37 million in 2014. This is an 83 percent decrease in total volume of Class A properties and caused the total multifamily average price per unit to drop by 24 percent. This is not an indication of values declining. In fact, the opposite is true. Properties that are being fully marketed and that are providing access to as many buyers as possible are fetching …

December 12, 2014

Market Reports Oklahoma Texas Market Reports

Trend towards more square footage

by admin December 9, 2011

As the national market recession began in 2008, and started to settle in throughout the city of Houston around mid-year 2009, businesses focused on the implementation of efficiency, accomplishing more with fewer resources applied to the daily routine. In most business models, the most expensive resources are the current staff, followed closely by office space. In that most office leases are illiquid, downsizing of non-essential personnel is logically the most expedient way to an immediate impact on the bottom line during an economic downturn. However, this also results in an immediate surplus of office space per person or phantom vacancy; a pattern logically should trend downward during a recessionary cycle in the economy. According to CoStar data from the 3rd quarter 2011 webinar, the average square footage per worker has increased by almost 10% since 2008, and leveling off after 2009 without significant decrease. Certainly, the trend is quite the opposite of what we would expect today, arguably even in a stable economy as the trend is increasingly toward efficiency. However, such excess may not only be to the lack of the ability to dispose of such vacancy, but the intentional positioning where employers are seeking to recruit quality personnel …

December 9, 2011

Market Reports Oklahoma Texas Market Reports

Overall market doing very well.

by admin March 6, 2008

What area is your expertise? My specialty is retail investment sales in Oklahoma. What trends do you see presently in retail development in your area? The Oklahoma City metropolitan area has experienced minimal local tenant turnover, but for the most part, leasing has stabilized. With the construction of new life style centers, mall tenants and even mall anchors are moving to the new open air developments. What type of retail product is doing well in your area? Recently developed shopping centers occupied with national tenants remain the front runner for solid retail investments and, as in most markets, well-located neighborhood centers continue to be successful. Free standing retail is still solid with very few vacancies; however, the verdict is still out as to what fallout the Metropolitan area will have from nationwide store closings. What retailers are new to your area? Conn s is the most recent retailer to the Oklahoma City area opening one store with three more planned. Who are the active retail developers in your area? Jackson Development, Sooner Investment Group, Blanton Property Co., Burk Collins & Co. and Larry Owsley. Please name one or two significant retail developments in your area. What impact will these projects …

March 6, 2008