Despite the ever-evolving economic challenges experienced at the local, regional, and national levels, Oklahoma City remains resolute in its commitment to finding solutions. In Q3 2023, Oklahoma City has continued to demonstrate remarkable resilience, with job growth, unemployment rates, and population expansion all showcasing strength that outpaces the broader national economic trends. New commercial real estate projects, such as The Oak and Convergence, as well as increased corporate investments, underscore the city’s economic vitality. In the face of evolving headlines, Oklahoma City stands firm and persists through uncertain times.
The office leasing and investment sales market in Oklahoma City continues to change despite the national economic state. An increasing influx of available space into the market is exerting downward pressure on vacancy rates which continue to outperform the US market at 9.9% in Q3. The market currently boasts a record high of 8.6 million square feet of available space. Challenges persist in the office sector as tenants persistently reevaluate their space needs on a per-employee basis. In the current office market, Oklahoma City’s traditionally more affordable rental rates offer substantial value, especially in a period where organizations are particularly sensitive to controlling expenses. As expected, investment sales continue to experience a notable decrease in total volume due to the challenges posed by the prevailing interest rate environment. However, it’s worth noting that cap rates for Q3 in the Oklahoma City office market are trading 2.5% higher than the US average. This differential provides a favorable opportunity for both local and out-of-state investment groups.
While commercial real estate markets globally grapple with numerous uncontrollable factors, the local CW office team maintains a strong belief that the office market will eventually rebound robustly. In the interim, they are diligently crafting innovative solutions that continue to deliver added value to their clients and partners.