Commercial real estate touches every industry in Oklahoma City

Apartment rents rose, retail stores were in a “rush,” office rents fell and industrial property was still on fire in Oklahoma City in the third quarter, NAI Sullivan Group said this week.

Here are highlights from the firm’s detailed reports, available at www.naisullivangroup.com.

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Apartment owners push rents up

Rents have increased by 8.5% on average over the past year, reported Micalyn Wetwiska, multi-family specialist. It could have been worse. She said some Sunbelt towns have seen increases of more than 20%.

As construction slowed at the worst of the coronavirus pandemic, supply could not keep up with demand and the overall apartment vacancy rate fell from 7.9% in the second quarter to 6.6% in the third, the lowest since 2014, Wetwiska said.

“The drop in supply has allowed apartment owners to push for higher rents,” she said, but paying higher rent is always easier than buying a house.

“The low interest rates have created a hyper-competitive residential market benefiting apartment owners,” she said. “Renters are forced to rent because buying a home has become so competitive, leaving most of them with no choice but to rent.”

Wetwiska tracked 46 apartment sales for a combined $ 233 million, the largest of the 850-unit Isola Bella apartments, 6303 NW 63, which was sold to New York Investors for $ 56 million, or 65,882. $ per unit, August 23.

The Isola Bella Apartments, 6303 NW 63, were sold to New York investors for $ 56 million, or $ 65,882 per unit, on August 23, reports the NAI Sullivan Group.

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Restaurants lead retail rush for space

Retail was a “rush” in the third quarter, reported David Hartnack, vice president of retail.

“The post-pandemic wave of retail users continues to drive vacancy rates down and rental rates upward. This has been especially true for any space built as a restaurant or drive-thru,” Hartnack said. “Additionally, users felt the need to freeze longer term rental rates to combat expected inflation over the next several years.”

Investment sales surged as many retail owners chose to sell amid uncertainty over long-term capital gains tax changes, he said.

Uncertainty also colors the outlook.

“While the market is currently busy, we don’t know what 2023 has to offer. Persistent supply chain issues and changing capital gains tax laws could have dramatic effects in the retail market. “said Hartnack.

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Biggest office sale took place downtown

There were 63 office transactions recorded in the third quarter for a total of $ 86,244,612, reported office specialist Matthew Pierce, and the biggest sale was hit near us:

The office building where The Oklahoman now rents space, at 100 W Main St., was sold to Griffin Media Center OKC for $ 16,025,000, or $ 145.68 per square foot, on August 2. The sale was announced on July 12.

The 110,000 square foot property is undergoing renovations, which is why I am writing this at home. We will be returning downtown after the first of the year.

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Incredible still sizzling industrialist

The vacancy rate for industrial warehouses in the metropolitan area slips to 3.2%, but in Edmond it’s ridiculous: 0.6%, reports Zac McQueen, industrial specialist.

But then Edmond is not really known for industrial property.

Nonetheless, its absorption of more than 100,000 square feet of space in the third quarter made it “the hottest on the metro,” McQueen said.

“The national industrial market as a whole had a record quarter for various key metrics such as rent, vacancy and net absorption,” he wrote. “The national industrial vacancy rate has fallen to an all-time low of 4.1%, and average rents have hit an all-time high of $ 7.18 per square foot.

“Oklahoma City has seen a lot of this national success at the local level. Vacancy rates continue to be extremely low and construction is finally starting to respond with the largest purely speculative Class A industrial development ever built in the city. Many hope and expect this will bring even more jobs and growth to the city’s national distribution footprint. “

Senior Business Writer Richard Mize has covered housing, construction, commercial real estate and related topics for the newspaper and Oklahoman.com since 1999. Contact him at [email protected]

This article originally appeared on Oklahoman: Updating industrial retail apartments from OKC commercial real estate offices


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