A wise man once said, “When it’s raining money, grab a bucket not a thimble.” Coming off of recent pricing highs in the oil patch and forward-looking bullish sentiment continuing, the local Oklahoma City economy continues to see a strong recovery as we have officially entered the post-pandemic era. Oil prices hitting a 5-year high, commencement of large-scale construction projects such as Oklahoma City’s $200,00,000 Innovation Hall project, the filming of the Paramount+ tv series “Tulsa King”, and numerous other economic drivers are positioning Oklahoma City to have a strong finish to the year.
As many markets fight to see positive growth in office leasing and sales, Oklahoma City continues to positively outpace the national average in most quantifiable categories. For landlords, vacancy rates and months-on-market metrics are both trending downwards due to the recent uptick in leasing activity. For buyers, the average price per SF and cap rates still remain more competitive than the national average, indicating Oklahoma City as a market not having achieved saturation of investment dollars both institutional and local alike. Lastly, the market has not shown significant movement yet in regards to velocity, but we expect that to be more observable in the near-term because of the increase in rates and inflation.
Oklahoma City’s local Cushman office team is expected to transact on over 500,000 SF of space by year’s end, so we continue to remain optimistic.