Booked and busy. The local Oklahoma City economy continues to weather the national economic thunderstorm thanks to several large-scale economic drivers, such as, the First National Center, the brand-new Oklahoma City Convention Center, and College Softball World Series, just to name a few. As the energy sector has seen a strong recovery, many Oklahoma City based energy companies reporting higher earnings, increased employment opportunities, and an overall optimistic outlook. In addition to the recovery in the energy world, companies like Prairie Surf Studios and Total Energy are bringing additional diversity and jobs to the local Oklahoma City economy.
Halfway through the year, Oklahoma City’s office market continues to have a solid recovery from the COVID-19 pandemic. Q2 has seen improving trends in commercial real estate metrics such as, effective rents, leasing activity, leasing velocity and new product under construction. From a sales perspective, overall volume has seen a 300% increase over Q1 while the price per SF has seen nominal movement, and effective cap rates have seen a very small decrease over Q1.
While we continue to navigate issues such as rising interest rates, increased inflation, and supply chain constraints, the Oklahoma City office market is expected to remain positive. That said, we are seeing said forces significantly impact new construction and landlord tenant improvement concessions; however, the abundance of high-quality, second-generation buildings are expected to continue to see increased activity in both leasing and sales.