The pandemic has affected nearly every human being and business, on earth, in some form or fashion and the commercial real estate industry has certainly been affected if not clobbered. The hardest hit sectors are hotels, restaurants, bars and entertainment venues such as bowling alleys, movie theaters, live performances and casinos. Spring is the most popular time for weddings, thus those venues have virtually been shut down for the foreseeable future.
Needless to say, these are unprecedented times. The national shutdown is probably the most disruptive event of my lifetime. The uncertainty about the length is part of what makes is incredibly difficult to make plans, particularly for real estate.
News is out that Costco has plans to open its second location in Moore, Oklahoma with construction set to begin in the fall of 2020. You would think the Moore residents would be thrilled about the idea of having a Costco, as I know I love having them here. When I lived in California some time ago I remember how impressed I was with its layout, wide array of healthy food choices, the experiences I had with customer service, and the aesthetics itself just made you feel like your membership was definitely worth the cost of a whopping $60 per year!
When I was in kindergarten my mother dropped me off outside of the school with a warm “I love you…now go make friends” and as the tears weld up in my eyes as I looked at the vast sea of 5 year-olds crowded around the building, I began my journey as an introvert in an extroverted world. The fear of social situations has been a challenge that I’ve only recently started to appreciate.
As multifamily brokers, we consistently hear from buyers searching for value-add properties. However, increasingly, we are beginning to hear discouragement there are no more value-add deals to be found. The per unit prices in Tulsa and Oklahoma City are accelerating into all-time highs; currently they are in the low $60,000 per unit range. While this escalation of prices may seem discouraging at first, prospective buyers need to realize that there are still opportunities to be found.
Retail is changing – you are seeing smaller store footprints, the lure of discounters, the optimizing of the relationship between stores and digital, the rise of fitness and health as main-line retail, entertainment and, one of my favorite retail buzzwords, experiential retail. You can’t read an article about the future of retail without talking about this experiential revolution.
The Commercial Real Estate industry uses a number of statistical-based metrics to describe the overall health and vitality of local real estate markets or sectors. Sometimes these numbers should not be taken at “face value”. Most often quoted are vacancy and net-absorption.
The scientific consensus is that climate change will touch all our lives in the 21st century. Because commercial buildings and their construction currently account for about 39% of energy-related carbon dioxide emissions and project a continued growth at 2% per annum, commercial real estate can be of service in solving this problem.
Many people have wondered whether or not online shopping would affect the retail market. Some might say this is accurate, while others will say it helps land specific retailers to open up more locations. This past year Mizzen+Main opened its first Oklahoma store in Oklahoma City, located in Classen Curve.