Resources

ECONOMY:

Oklahoma City demonstrates its resilience in the face of evolving market challenges. In Q1 of 2024, the city maintains lower unemployment rates and higher population growth compared to the national average. However, job growth in Q4 falls below the national average. As Oklahoma City works to diversify its economy by attracting larger businesses in the technology and energy sectors, the state remains optimistic that job growth as well as other areas of the economy will recover in 2024.

MARKET OVERVIEW:

Despite market turbulence, the office market in Oklahoma City remains stable. When looking at all office classes (Medical Office, Co-Working Space, etc.) and among all office sizes, we have a vacancy rate of 9.2%. The core Oklahoma City office market* showing a vacancy rate of 25.3%, Oklahoma City continues to outperform national rates of 26.5%. While leasing activity gains momentum, sales activity remains stagnant due to challenging financing conditions. The leasing landscape is dominated by smaller leases as office users reassess their office utilization amid the trend of hybrid office schedules. Oklahoma City remains an appealing market for office users, offering a diverse range of spaces at affordable rental rates in comparison to national averages.
*Sample criteria: 10,000SF+; Classes A, B, & C; traditional office product

OUTLOOK:

The Cushman & Wakefield (“C&W”) office team notices a steady pattern of office tenants opting for downsizing into nicer more efficient office spaces within the city. During this transitional phase of the “return to work” for certain larger corporate office users, the C&W team anticipates a slight increase in larger office clients seeking new space in central Oklahoma City. Despite the myriad of uncontrollable factors affecting global commercial real estate markets, the local C&W office team maintains an optimistic outlook on the local office market and its future growth.

ECONOMY:

Amidst the ever-evolving economic landscape at the local, regional, and national levels, Oklahoma City remains steadfast in its commitment to overcoming challenges. The city’s enduring resilience, evident in robust job growth, favorable unemployment rates, and noteworthy population expansion surpassing national economic trends, persists into Q4 of 2023. Notable commercial real estate ventures like the Boardwalk in Bricktown, alongside increased corporate investments like Canoo, underscore the city’s economic vitality and sustained growth. Despite the dynamic nature of current developments, Oklahoma City remains resolute and adept at navigating uncertainties with resilience, actively attracting new companies to the city through its pro-business environment.

MARKET OVERVIEW:

Oklahoma City’s office market is outperforming the national average with stable vacancy rates at 10.0% and rent growth of 1.6%. Despite a positive absorption trend, a future slowdown is expected due to changing office use patterns. The city has avoided the large increases in sublease space seen elsewhere, with only 0.3% of its space up for subletting. To maintain its appeal, Oklahoma City offers a range of spaces, including high-quality options like the Chesapeake Campus. Sales activity remains active, although recent transactions have decreased compared to the previous peak year..

OUTLOOK:

In the face of numerous uncontrollable factors impacting global commercial real estate markets, the local Cushman & Wakefield office team stands firm in their belief that the office market is poised for a strong rebound. The CW office team observes a consistent trend of office tenants seeking downsizing, alongside a notable interest from corporate offices looking to relocate into larger central footprints in areas like Midtown or CBD. Concurrently, they are proactively developing innovative solutions to consistently deliver added value to their clients and partners during this transitional period.