“Energy,” “Energy” and “Energy” — surprise, surprise, surprise — could have been the headlines over recent office, industrial and retail property market reports from CB Richard Ellis-Oklahoma.
Better late than never on this, by the way. It's a midyear report, but it came out late, and I'm just now getting to it here at the start of the fourth quarter.
Sorry about that. Thankfully, nothing has drastically changed since June — although commercial broker Gerald L. Gamble said the space shuffling that hit industrial as a result of the May 31 tornado is about over.
‘Energy' in office
Thriving “due to the robust energy and supporting industries,” according to CB Richard Ellis-Oklahoma.
The firm surveyed 144 office buildings 20,000 square feet and larger — a total of 14,553,078 square feet — and found a vacancy rate of 16.29 percent, almost flat compared with the end of last year.
The average lease rate slipped 2 cents to $15.21 per square foot per year, while the weighted average increased from $14.28 to $14.42, an indication the fast absorption of a large amount of lower-priced Class 3 space relative to Class B and Class A.
‘Energy' in industrial
“Energy continues to be the primary driving force of the market with other sectors also assisting in Oklahoma's push upward,” according to CB Richard Ellis-Oklahoma.
The firm said it tracks just under 100 million square feet of industrial space and now breaks the market down by submarket rather than building size:
Central business district, 7.51 percent vacant, rent $4.40 per square foot; northeast, 14.4 percent vacant, rent $3.95 per square foot; northwest (including Edmond), 10.56 percent vacant, rent $4.10 per square foot; southeast, 10.36 percent vacant, rent $3.60 per square foot; southwest (largest submarket by far, at least three times any others in amount of space), 10.6 percent, rent $4.12 per square foot; overall, 10.8 percent vacant, $4.02 per square foot.