The report predicts higher unemployment and reduced wages would be felt by the entire retail market under this scenario, with the brunt of the retraction likely to be suffered by merchants in Nichols Hills and near the corporate campus. High-end stores across the city also would see reduced sales.
•Scenario: Aubrey McClendon creates a new oil and gas company and Chesapeake Energy remains based in Oklahoma City.
“Industry analysts believe it is unlikely that McClendon will leave the energy sector,” Anewalt wrote.
“The Oklahoman reported that Aubrey McClendon is unable to enter the energy industry until June 2017, after all of Chesapeake’s severance payments have been made and the six-month noncompete period has been fulfilled. However, we anticipate this timetable to be pushed sooner.”
Under this scenario, the report suggests the city could end up with five large energy companies: Devon, Chesapeake, Continental Resources, SandRidge and McClendon’s new company. The impact on retail and commercial development with a new McClendon company and Chesapeake surviving is “unknown.”
CONTRIBUTING: Richard Mize, Real Estate Editor