DOCSLIB.ORG

Oklahoma City

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Oklahoma City Oklahoma City 2008 Mid-Year Office Market Summary TABLE OF CONTENTS Office Market Summary 1 Central Business District Submarket 2-3 Northwest Submarket 4-6 North Submarket 7-9 Midtown Submarket 10-11 West Submarket 12-13 Suburban Submarket 13 Medical Office Submarket Back Cover The information contained herein has been obtained from reasonably reliable sources. Price Edwards & Company makes no guarantee, either express or implied, as to the accuracy of such information. All data contained herein is subject to errors, omissions and changes. Reproduction in whole or in part, without prior written consent is prohibited. Oklahoma City 2008 Mid-Year Office Market Summary The first half of 2008 provides ample evidence that the Oklahoma City vacancy rate in this area of town is 14.1%. Class A rental rates now stand office market remains robust despite a deteriorating national economy. at $21.17 per square foot, with the better buildings achieving rental rates in However, the healthy nature of the market could be tested in the coming the mid $20’s. months as national companies will inevitably curtail expansion plans for new and existing locations. Much of the local economy’s good health can be The North submarket also OKC Total Office Market Inventory attributed to the financial strength of local energy companies. However, that 20 experienced very positive results strength could actually work against the market as Devon Energy has recently Occupied SF Vacant SF despite having very little room left to announced that it will construct a 1.9 million square foot headquarters in the 15 improve. The submarket absorbed Central Business District. 20,000 square feet and its aggregate 10 vacancy rate fell from 5.6% to OKC Total Office Market Vacancy While that is great news for the 4.4%. The North submarket’s Class 35% city in general, there is downside feet) (millions of square A buildings are currently only 0.4% Market Vacancy CBD Vacancy Suburban Vacancy 5 30% risk for the market if it is unable vacant and the Class B buildings are to absorb the 800,000 square feet only 3.3% vacant, making better 25% 0 or so Devon leaves behind in other '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 quality space in this area of town 20% downtown buildings. Fortunately, almost impossible to find. As you 15% the market has a 4-year head- might expect, rental rates in this submarket are on the rise. The average 10% start to deal with that problem, rental rate rose from $16.07 to $16.44 per square foot as landlords continue 5% but the market’s total absorption to feel more bullish and push rates upward. Class A space in this submarket 0% over the past 4 years has only been currently rents for $22.75 per square foot on average. '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 800,000 square feet and most of that absorption has occurred in the Moving forward into the remainder OKC Total Office Market Absorption north and northwest submarkets, not downtown. During that same four- of 2008, we anticipate the overall 500,000 year period the CBD has only absorbed 30,000 SF and that number would market will experience modest actually be negative if not for Devon’s own absorption of downtown space. improvement, but the national 400,000 It should be noted though that there has been other CBD absorption that is economy will temper the market’s 300,000 not reflected in our numbers because we only track multi-tenant properties potential growth. As noted earlier, 200,000 and not owner-occupied properties. In just the past twelve months the CBD the uncertainty of the global and received more good news when Sandridge Energy acquired the nearly half national economies will hinder 100,000 million square foot building that was formerly Kerr-McGee’s headquarters. the organic growth of national 0 That building has never been a part of our market report, but if it had sold companies with Oklahoma City -100,000 to investors whose goal was to lease it on a multi-tenant basis, it would have offices and all but put a stop to the 2004 2005 2006 2007 2008 had a crippling effect on the CBD submarket. opening of any new offices in our market. While we are experiencing economic conditions that are certainly an If our economy remains strong aberration compared to most areas, we are not completely insulated from OKC Total Office Rental Rates and the downtown area continues $20.00 Northwest North Suburban cutbacks by those companies that are not locally based. to grow as a place to live and not CBD West Midtown Suburban just work, the chances are good West for continued absorption in the Midtown downtown office market. So while $15.00 the market continues to be healthy North and the Devon announcement is, Northwest in general, great news for our city, CBD there’s a cautionary tale that bears $10.00 hearing and market indicators that 2004 2005 2006 2007 2008 bear watching as the 20th tallest building in the country rises outside our company’s windows. During the first half of 2008 the total vacancy rate dropped from 14.9% to 14.6%; it’s lowest level since 1996. The Central Business District’s vacancy rate decreased from 25.8% to 24.9%, while the suburban market remained level at 9.2%. The Northwest submarket, which is the largest in the suburbs, actually experienced a small degree of negative absorption (-18,000 SF) due to a new 42,000 SF building in the Gaillardia development being added to inventory. This submarket continues to remain strong however, as gains at other properties nearly offset the addition of new inventory. The Class A Oklahoma City Metro area submarket map 1 2008 Mid-Year Oklahoma City Office Market Summary Central Business District Submarket 2008 Mid-Year CBD Vacancy 2008 MID-YEAR CENTRAL BUSINESS DISTRICT REVIEW 35% • Aggregate vacancy rates decreased from 25.8% to 24.9% 30% 25% • Class A vacancy increased from 12.2% to 12.3% 20% • Class B vacancy decreased from 14.3% to 13.4% 15% 10% • Class C vacancy decreased from 58.6% to 56.6% 5% • Aggregate rental rates decreased from $14.61 per SF to $14.26 per SF 0% 2004 2005 2006 2007 2008 • Class A rates held steady at $17.08 per SF • Class B rates increased from $13.66 per SF to $13.71 per SF 2008 Mid-Year CBD Rental Rates by Class $19.00 Class A Class B Class C • Class C rates decreased from $13.00 per SF to $11.63 per SF $17.00 • The CBD absorbed 44,000 SF in the first half of 2008 $15.00 $13.00 $11.00 2008 YEAR-End CENTRAL BUSINESS DISTRICT FORECAST $9.00 2004 2005 2006 2007 2008 • Vacancy rates should continue to decrease in the remainder of 2008 • Rental rates will remain near current levels 2008 Mid-Year CBD Occupancy by Class 100% 80% Central Business District Business Central 60% 40% 20% 0% Class A Class B Class C 2008 Mid-Year CBD Absorption 100000 62000 24000 -14000 -52000 -90000 2004 2005 2006 2007 2008 2 Downtown Oklahoma City 2008 Mid-Year Oklahoma City Office Market Summary Central Business District Submarket CBD Year Built Floors RSF Vacant SF Vacant % Rate CAF 100 Park Avenue Building 1923/64 12 99,752 7,882 8% $12.00 12% 100 Park Ave 101 Park Avenue Building 1936/74 14 197,042 71,604 36% $14.00 16.4% 101 Park Ave 20 N. Broadway 1981 19 307,388 0 0% $16.00 20% 20 N Broadway Bank of Oklahoma Plaza 1972 16 233,808 15,636 7% $14.50 20% 201 Robert S Kerr Ave Chase Tower 1971 36 517,454 16,500 3% $14.25 15% 100 N Broadway City Place 1931/85 33 292,304 67,387 23% $12.00 14% 204 N Robinson Ave Corporate Tower 1980 14 277,849 7,095 3% $16.00 17.6% 101 N Robinson Ave Court Plaza 1923/79 10 78,381 29,030 37% $10.50 14% 228 Robert S Kerr Ave Dowell Center 1926 20 190,000 190,000 100% $9.50 15% 134 Robert S Kerr Ave First National Center 1931/74 28 972,267 553,073 57% $12.00 14% 120 N Robinson Ave District Business Central Hightower Building 1929 10 107,152 15,000 14% $14.00 15% 105 N Hudson Ave Leadership Square 1984 21N/16S 735,514 157,281 21% $17.00 20% 211 N Robinson Ave Oklahoma Tower 1982 31 568,960 52,405 9% $17.00 20% 210 Park Ave One North Hudson 1931/81 11 73,000 17,065 23% $10.00 12% 401 W Sheridan Ave Robinson Plaza 1992 10 183,000 43,000 23% $11.00 0% 50 N Robinson Ave Robinson Renaissance 1927/87 12 174,840 29,467 17% $13.00 25% 119 N Robinson Ave Sonic Building 2003 4 100,654 953 1% $21.50 8.6% 300 Johnny Bench Dr The Reserve 1922/97 2 59,284 14,631 25% $16.00 20% 226 Dean A McGee Ave CBD Totals 5,168,649 1,288,009 24.9% $14.26 3 2008 Mid-Year Oklahoma City Office Market Summary Northwest Submarket 2008 Mid-Year Northwest Vacancy 2008 MID-YEAR NORTHWEst subMARKET REVIEW 15% • Aggregate vacancy rates increased from 9.5% to 10.4% 12% • Class A vacancy decreased from 16.1% to 14.1% 9% • Class B vacancy increased from 6.9% to 9.2% 6% • Class C vacancy increased from 8.4% to 8.5% 3% • Aggregate rental rates increased from $15.95 per SF to $16.54 per SF 0% 2004 2005 2006 2007 2008 • Class A rental rates increased from $20.49 per SF to $21.17 per SF • Class B rental rates increased from $14.99 per SF to $15.38 per SF 2008 Mid-Year Northwest Rental Rates by Class $25.00 Class A Class B Class C • Class C rental rates increased from $12.31 per SF to $12.98 per SF • The Northwest Oklahoma City Submarket experienced negative $20.00 absorption of 18,000 the first half of 2008 $15.00 2008 YEAR-End noRTHWEst subMARKET FORECAST • Vacancy rates should drop slightly in the second half of the year as $10.00 2004 2005 2006 2007 2008 this submarket remains strong but also deals with the addition of approximately 30,000 SF of new construction Northwest 2008 Mid-Year Northwest Occupancy by Class • Quoted rates will rise due to such a small amount
Load more

Recommended publications
  • Oklahoma Citycity Office Market Summary Year End 2006 Oklahomaoklahoma Citycity Office Market Summary
    OklahomaOklahoma CityCity Office Market Summary Year End 2006 OklahomaOklahoma CityCity Office Market Summary The Oklahoma City office market closed out 2006 on a very successful note. The Contents market absorbed nearly one-half million square feet and experienced a reduction Office Market Summary ............ 2-3 in the total market vacancy of 2.3 percentage points – ending the year at 15.7% Office Submarket Map ................ 3 vacant. Central Business District ............ 4-5 The suburban markets fared well in almost every submarket and building Northwest ................................ 6-9 classification. The overall suburban vacancy rate fell from 11.7% to 8.8%. Class A suburban space is a particularly healthy market with a vacancy rate of only North .................................. 10-12 5.6%. As a frame of reference, at the end of 2002 the Class A suburban vacancy Midtown ................................... 13 rate stood at 34.6%. As it stands, there are virtually no large blocks of available West ................................... 14-15 Class A space in the suburban submarkets and very few large blocks of Class B Suburban Analysis .................... 15 availabilities. With options that limited, it is only natural that the suburban markets are seeing construction of additional inventory. So far, the local developers have taken a very methodical approach to new construction, with only 42,000 square feet added in 2006 and only 120,000 square feet or so either under construction or on the drawing board for 2007. The market should be easily able to absorb the additional space with no adverse effect. The continued improvement in the suburban markets is also reflected in rental rates.
    [Show full text]
  • 2004 YE Office Market Report2.Indd
    OklahomaOklahoma CityCity Office Market Summary Year End 2004 OklahomaOklahoOklahomama CityCityCity Office Market Summary Contents During 2004 the Oklahoma City offi ce market continued to rebound and actually showed marked improvement in key suburban submarkets. Overall, Offi ce Market Summary ............ 2-3 the market’s vacancy rate dropped from 21.7% to 19.9%. That would be Offi ce Submarket Map ................ 3 considered a good year in any year, but given the slowly improving, yet still Central Business District ............ 4-5 unsettled national economy that was negatively affected by both an ongoing Northwest ................................ 6-9 war and a presidential election, 2004 would have to be considered a very North .................................. 10-12 good year. Midtown ................................... 13 West ................................... 14-15 Although the Central Business District’s vacancy increased from 30.6% to Suburban Analysis .................... 15 31.7%, the suburban markets fared much better, particularly in the higher- end properties. The overall suburban vacancy rate fell from 16.5% to 12.9% and Class A suburban space experienced a dramatic 14-point decrease from 23.6% to 9.7%. In just the past two years, the Class A suburban vacancy rate has fallen 25 points from its recent high of 34.6% at the end of 2002. Major gains were made at virtually every suburban Class A building. Waterford absorbed approximately 47,000 square feet of vacancy, Quails Springs Parkway Plaza absorbed approximately 60,000 square feet and Hertz Financial Center absorbed approximately 91,000 square feet. Of course, Hertz largely benefited from Dell Computer’s temporary lease of approximately 60,000 square feet while their permanent facility is constructed.
    [Show full text]
  • 2013 Mid-Year Office Market Summary TABLE of CONTENTS
    Oklahoma City 2013 Mid-Year Office Market Summary TABLE OF CONTENTS Office Market Summary 1 Central Business District Submarket 2–3 Northwest Submarket 4–6 North Submarket 7–9 Midtown Submarket 10 West Submarket 11 Suburban Submarket 12 Medical Office Submarket 13 Submarket Map The information contained herein has been obtained from reasonably reliable sources. Price Edwards & Company makes no guarantee, either express or implied, as to the accuracy of such information. All data contained herein is subject to errors, omissions and changes. Reproduction in whole or in part, without prior written consent is prohibited. Oklahoma City 2013 Mid-Year Office Market Summary The Oklahoma City office market held steady during the anchor tenant for what is reported to be an at least OKC Total Oce Market Vacancy 35% the first half of 2013. Overall, the city’s vacancy rate 20-story tall tower. It is likely that the construction Market Vacancy CBD Vacancy Suburban Vacancy rose from 16.2% to 16.5%. The market’s vacancy of such a building will create offsetting vacancy the 30% stood at 16.4% a year ago. In general, all submarkets anchor tenant leaves behind as we do not believe, and 25% performed fairly well except for the North submarket it certainly has not been reported, that the tenant is 20% which had negative absorption of just over 90,000 new to the market. 15% square feet. That anomaly resulted in total negative absorption of nearly 47,000 square feet. The North The overall suburban vacancy rate ticked upward from 10% submarket experienced some general softening partly 11.8% to 12.4% which was primarily attributable to the 5% due to a reduction of Chesapeake’s leased space previously mentioned changes in the North submarket.
    [Show full text]
  • Ibew-1141-History-Book-Web.Pdf
    History Book Sponsor Y E A R 100 S 1001921 2021 CONGRATULATIONS IBEW LOCAL UNION 1141 International Brotherhood of Electrical Workers Lonnie R. Stephenson, International President Kenneth W. Cooper, International Secretary-Treasurer Steven M. Speer, International Vice President, Seventh District www.ibew.org This book was proudly produced by Head Historian: Calvin Jefferson I.B.E.W. Local 1141 and Union Histories give thanks to the following Research Assistant & Proofreader: Ann Wilkins Jefferson for their contributions to this book: Art Direction: Andy Taucher I.B.E.W. Local 1141 Dispatcher Brother Charles Milner I.B.E.W. Local 1141 Brother Martin Crain Jr. I.B.E.W. Local 1141 charter, dated April 19, 1921, Layout & Design: Steven Demanett and marked with various revisions throughout the I.B.E.W. Museum Manager and Curator Curtis Bateman years, signed by I.B.E.W. General President James Oklahoma Historical Society; Rachel E. Mosman, Digital Assets Manager P. Noonan (who served in that position from 1919 into 1929) and I.B.E.W. Secretary Charles P. Ford Oklahoma City Metropolitan Library System; Lisa Bradley, Special Collections (who served in that position from 1912 into 1925). Cleveland County Historical Society I.B.E.W. 1921 2021 I.B.E.W. 1921 2021 We All Got Local 1141 to 100 Years and Will Take it Beyond Here’s To The Future — But Don’t Forget About The Past Union Brothers, Sisters and Family members, Signatory Contractors, In my time as business manager of I.B.E.W. Local No.1141, which Members of the Legislature, Vendors, and all of our Friends: has been just a brief moment in the local’s century-long history, I have On behalf of I.B.E.W.
    [Show full text]
  • Oklahoma City 2013 Year-End Office Market Summary TABLE of CONTENTS
    Oklahoma City 2013 Year-End Office Market Summary TABLE OF CONTENTS Office Market Summary 1 Central Business District Submarket 2–3 Northwest Submarket 4–6 North Submarket 7–9 Midtown Submarket 10–11 Medical Office Submarket 11 West Submarket 12–13 Suburban Submarket 13 2012 Office Sales Back Cover Submarket Map The information contained herein has been obtained from reasonably reliable sources. Price Edwards & Company makes no guarantee, either express or implied, as to the accuracy of such information. All data contained herein is subject to errors, omissions and changes. Reproduction in whole or in part, without prior written consent is prohibited. Oklahoma City 2013 Year-End Office Market Summary Despite an uptick in the second half of the year, the The suburban markets are not without their challenges OKC Total Office Market Vacancy 35% Oklahoma City Office Market ended 2012 with a drop in the coming year. With increasing rental rates and Market Vacancy CBD Vacancy Suburban Vacancy in its vacancy rate from 16.4% to 16.2%. Perhaps what such low vacancy rates one could normally expect 30% is most impressive is the market’s stability. Despite construction of new projects to ramp up, but no new 25% reason for that seems to be developers’ uncertainty 500,000 square feet of space hitting the market in 2012 space is currently under construction. The biggest 20% from Devon’s phased relocation to its new downtown Chesapeake has been the suburban markets’ best 15% corporate headquarters, the market seemed to just regarding Chesapeake Energy’s space needs. shrug that off with solid absorption of that vacancy 10% and another strong performance by the Northwest friend over the past several years by acquiring several 5% submarket where the overall vacancy rate is now hundred thousand square feet of space either by 0% '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 under 10%.
    [Show full text]
  • Oklahoma Citycity Office Market Summary Year End 2005 Oklahomaoklahoma Citycity Office Market Summary
    OklahomaOklahoma CityCity Office Market Summary Year End 2005 OklahomaOklahoma CityCity Office Market Summary Contents During 2005 the Oklahoma City office market continued to stabilize and actually showed marked improvement in key suburban submarkets. Office Market Summary ............ 2-3 Overall, the market’s vacancy rate dropped from 19.9% to 18.0%. Office Submarket Map ................ 3 The suburban markets fared well in almost every submarket and building Central Business District ............ 4-5 classification. The overall suburban vacancy rate fell from 12.9% to 11.7%. Northwest ................................ 6-9 Class A suburban space is a particularly healthy market with a vacancy North .................................. 10-12 rate of only 8.2%. Just 3 years ago, the Class A suburban vacancy rate Midtown ................................... 13 stood at 34.6%. As it stands, there are virtually no large blocks of available West ................................... 14-15 Class A space in the suburban submarkets and very few large blocks of Class B availabilities. With options that limited, it is only natural that Suburban Analysis .................... 15 the suburban markets begin to experience the construction of additional inventory and that is certainly the case. The general health of the suburban market has given rise to the construction of two new Class A buildings that are either under construction or soon will be in the Gaillardia commercial development. The addition of these new buildings will only add approximately 90,000 square feet of new inventory however, and the market should be easily able to absorb the additional space with no adverse effect. The continued improvement in the suburban markets is also reflected in rental rates.
    [Show full text]
  • Oklahoma Citycity
    OklahomaOklahoma CityCity Office Market Summary Mid-Year 2007 OklahomaOklahoma CityCity Office Market Summary Mid-Year 2007 CONTENTS Office Market Summary 2-3 The first half of 2007 shows a continuance of the positive trends that have persisted in the Oklahoma City office market in the past five years. During the first half of 2007 the total Office Submarket Map 3 vacancy rate dropped from 15.7% to 15.0%. The Central Business District’s vacancy rate Central Business District 4-5 remained mostly unchanged at 27.7%, while the suburban market decreased from 8.8% to 8.2%, representing its lowest vacancy in the past ten years. Northwest 6-9 The biggest news for the CBD, and in fact the entire market, was the announcement of North 0- Sandridge Energy’s purchase of the former Kerr-McGee Tower. With that acquisition, the potential scenario of approximately 450,000 square feet of inventory being dumped on Midtown 3 the market was averted. While the space at the Kerr-McGee Tower never hit the inventory West 4-5 rolls, it would have had a crippling effect on the market if a user, such as Sandridge, had not purchased the building. The first half of the year also saw a handful of new leases Suburban Analysis 5 signed with local energy companies that will further improve the CBD market. However, the majority of those energy-related gains will be offset by the addition of approximately 50,000 square feet of additional vacancy created by the addition of multi-tenant availabilities at The Reserve, which was formerly fully occupied by the Federal Reserve Bank.
    [Show full text]