The sooner s Ta Te’s economy has been growing.
In the midst of the recession, Oklahoma led the nation with gross domestic product (GDP) growth of
6. 6 percent in 2009, compared to a national contraction of 2.1 percent, according to unrevised data from
the Bureau of Economic Analysis. Since then, Oklahoma’s GDP has continued to grow, although not at
the same pace. This past year, Oklahoma’s GDP growth rate was 2.1 percent, compared with 1.9 percent
and 1 percent in 2011 and 2010, respectively. National GDP growth was 2. 5 percent in 2012.
The state’s economic stability has been the backbone for its commercial real estate market. Oklahoma City ranked 32 on the list of U.S. markets to watch, according to the Urban Land Institute’s 2013
Emerging Trends in Real Estate report. This tertiary market is expected to see a push with companies
moving from the West Coast to Oklahoma, the report says.
So far this year, big deals have marked Oklahoma City’s commercial real estate market. As of this past
September, 13 commercial properties have traded for prices of more than $15 million, according to The
Journal Record. These deals ranged across multifamily and office transactions, including Greystar Real
Estate Partners’ acquisition of four apartment complexes for $151.58 million.
Oklahoma City office market
Oklahoma City’s low unemployment rate, which was 4. 8 percent
this past July, has reinforced the
strength of its office market. At the
end of this past second quarter,
lease rates across the Oklahoma
City office market were expected to
increase throughout 2013 and into
2014 as landlords see higher demand and declining vacancies, according to a report from NAISullvian
Group and CoStar.
This past second quarter, the Class-A
office vacancy rate was 4. 7 percent, a massive drop from 15. 8 percent in second-quarter 2012. Rental rates
of Class-A offices averaged $19.68 this past second quarter, the report says. Still, there is uncertainty
related to changes in the management of major market players Chesapeake Energy Corp. and San-dridge, and what impact those changes will have on the market in 2014, according to a report from
Cushman & Wakefield.
The energy sector is booming in Oklahoma, which is home to several large oil and natural gas producers, including Chesapeake Energy Corp. and Devon Energy. Nearly 25 percent of all jobs in Oklahoma
are tied to the energy industry either directly or indirectly, according to a report from NPR. The state’s
oil and natural gas industry has helped it weather the recent recession.
Oklahoma also is one of the top states in the nation for wind-power generation. It ranked sixth in
wind-power capacity this past year. With a recently installed 1,127 megawatts of new wind power
capacity, the state can generate 14 percent of its electricity from wind energy, according to the
U.S. Department of Energy.
Oklahoma’s unemployment rate
consistently has been below the
national average, even through the
tough years of the recession. This
past July, the unemployment rate was
5. 3 percent, while the national rate
was 7. 4 percent, according to data
from the U.S. Department of Labor.
July’s rate marked the third consecutive month showing an increase in unemployment since this
past April’s 4. 9 percent showing,
however. The increase could be an
indication that the state’s recovery has stalled with a decline of 2,300 nonfarm jobs in July. The construction sector lost 2,100 jobs in July, the largest month-over-month decline.
sources: Bureau of Economic Analysis, CNBC, CoStar, Edmond Sun, The Journal
Record, NAISullvian Group, NPR, Tulsa World, Urban Land Institute, USA Today,
U. S. Department of Energy, U. S. Department of Labor
BY RANIA OTEIF Y
Rania Oteify is an associate editor at Scotsman Guide. Reach her at (800) 297-6061 or email@example.com.
3 Cities to Watch
“In Oklahoma, there has been an effective balance bet ween the public and the private sector. We had a lot of
success between the local city councils, the state [and]
private businesses. This has given us a lot of stability
over the past 15 to 20 years. These are the forces responsible for our current economic strength, and I don’t see
anything destructive to these forces going for ward. I
think we will remain healthy into the foreseeable future.”
—;JAY;SCOT T;BRO WN,;O WNER,
The state capital is buzzing with construction and business
activity. Even the closure of a General Motors plant in 2006
hasn’t dimmed its prospects. Located near Tinker Air Force
Base, the plant is being leased by the military, which will
invest about $100 million over five years to convert it to the
Tinker Aerospace Complex. The complex will have nearly
2,000 workers by 2014, according to USA Today.
This past September, Tulsa’s city councilors were considering a multimillion-dollar incentive program to attract big-box
retailers to Oklahoma’s second-largest city. The program
offers as much as $2 million in sales-tax rebates for businesses that would generate substantial sales-tax revenue,
according to Tulsa World. In addition, Michigan-based Horizon Group Properties and Charlotte, N.C.-based Collett &
Associates are planning a high-end outlet mall in east Tulsa.
In 2011, Edmond ranked first on CNBC’s 10 perfect suburbs
list, mainly for its schools and the level of higher education
among its population. This past August, the city council
was discussing a downtown master plan to attract businesses and tourists to the area. Suggestions included adding water features, a railway transit station and making
downtown more pedestrian friendly, according to a report
from the Edmond Sun.
Source: U. S. Department of Labor
Source: NAISullivan Group/CoStar
OFFICE VACANCy RATES IN OKLAHOMA CITy