New warehouses will fill up as fast as they go up, keeping Oklahoma City in view for new industrial tenants, according to commercial realty firms.
Big bulk warehouse spaces are in especially short supply, but speculative construction is arising to meet the demand, Price Edwards & Co. said in its midyear industrial market summary.
Without the new space, “modern bulk warehouse spaces over 75,000 square feet are simply unavailable in Oklahoma City,” the firm reported. “This creates some real obstacles to larger tenants migrating to this market, and the economic development efforts to attract them.”
As goes multi-tenant bulk warehouse space — determined by a ceiling height of 24 feet or more, dock-high bays to accommodate trucks, with minimal office space — so goes the industrial property market in general, said broker Bob Puckett, who compiled the Price Edwards report.
“Bulk warehouse is always the bellwether measure because it is generally populated by national tenants,” Puckett said just off Oak Hollow Industrial Park, where a 60,000-square-foot spec warehouse is under way at 1300 SE 89, just east of Interstate 35.
Vanguard Development, the owner-developer of Oak Hollow, is offering the space at an aggressive $6.25 per square foot per year on a triple-net lease, meaning tenants pay property taxes, insurance and maintenance. Most new bulk space rents for $5 to $5.50, according to Price Edwards.
However, the supply is tight.
“There’s very little bulk warehouse on this side of town, and that’s one of the driving features in this project,” Puckett said.
More than 300,000 square feet of speculative industrial space, in three projects, is underway or planned to start this fall, according to CB Richard Ellis-Oklahoma’s midyear report.
They include that firm’s listing of 135,000 square feet of space at 6900 N Bryant Ave.; the Vanguard warehouse on SE 89; and Gardner Tanenbaum Holdings’ 125,000-square-foot warehouse at Northgate Industrial Park at I-35 and Hefner Road, broker Caitlin Dempsey said.
“Also following the speculative construction trend are developments ... that cater towards the oilfield services industry. With the increase in construction, demand for industrial land is also on the rise,” she said.
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