Two new buildings will be added to the Oklahoma City office market in 2019, but they are both mostly full already. The 606 N. Broadway build-to-suit project will be approximately 111,000 SF when completed, but over 90% of the building has been leased to Heartland Payment Systems, and the space remaining is largely retail in nature. The other building to be added to the CBD inventory this year is The Monarch on the northern edge of the downtown submarket.
Retail Investment Team Brokers $9,600,000 Shopping Center Sale
The Price Edwards Retail Investment Team is proud to announce the sale of Casady Square in The Village, Oklahoma. GRP Investments Investments, LLC purchased the property from MVP Casady, LLC for $9,600,000. The shopping center consists of 136,772 square feet situated on 8.43 acres of land. Casady sold for $70.19/SF at an 8.51% CAP rate.
2018 was a year of mixed results for the Oklahoma City office market. While vacancies increased, so did absorption of space. That is a rare occurrence, but the amount of space added outpaced the rate it could be absorbed. Although the market absorbed almost 395,000 square feet of space, over 800,000 square feet was added to the market. For now at least, the market isn’t moving forward or backward, instead, it seems to be stuck in neutral. The market is actually quite active, with several large leases being signed in 2018 and several more to come in 2019.
With the advent of internet marketers, the distribution fabric is undergoing a transformation. In the past, approximately two-thirds of the bulk warehouse existed to support physical retail stores. Many of these facilities have been re-tasked to internet fulfillment centers either directly or on behalf of an online retailer. Large-scale distribution facilities are now referred to in the industry as “big box”, and are either large (>200,000 square feet) single-tenant facilities or multi-tenant purpose-designed developments.
Overall market occupancy equaled 92 percent at year-end 2018, unchanged from a year ago. This confirms that there has been little overall movement in the aggregate market but belies all the activity behind the numbers. The underlying fact is that retail continues to grow, both nationally and locally. We added 650,000 square feet of space in centers over 25,000 square feet this past year, maintained occupancy, and, for the most part, rents.