Retail is never boring. In the age of click-bait, the headlines would have you believe retail is dying or at least mortally wounded. Over 8,000 stores closed this year, over 300 firms declared bankruptcy. Millennials aren’t spending money on ‘things’; everyone is shopping online, Amazon is unstoppable.
To a large degree, the commercial real estate industry is being shaped by shifting market conditions and changes in consumer behaviors. Some of the most significant consumer behavior changes are directly related to technology advances.
It is easy to view the current low vacancy in the industrial market as a tremendous positive, and in many ways, it reflects general prosperity. But ultra-low vacancy can have both positive and negative side-effects on both the short-term and long-term prospects for the metro area. Low vacancy promotes rent inflation, which is mostly positive when it occurs in moderation. Rent inflation encourages new construction by making property development economically feasible. This, in turn, empowers lending on new construction and is essential to the cycle of cash flow through the economy.
Price Edwards Brokers Sale of RSM Building
531 Couch Drive in Oklahoma City has been sold to Oklahoma River Company LLC (67%) and KI Capital LLC (33%); both Oklahoma based investors. The 2-story, 20,448 SF building is located directly across the street from the Civic Center in downtown Oklahoma City. Constructed in 1950 the building housed the RSM accounting firm and its predecessor companies for many years. The property also consisted of a 40-space surface lot immediately adjacent to the office building.
Since the signing of the JOBS Act in 2012 and more specifically the changes to Regulation D, which previously restricted the direct solicitation of investors, crowdfunding platforms for commercial real estate have seen tremendous growth.
The initial passing of the JOBS Act in 2012 allowed for direct solicitation but limited it to accredited investors. Accredited investor meaning any person with an annual income of $200,000.00 a year for the past two years, or an individual’s net worth exceeding $1 million dollars, excluding their primary residence.
The Tax Cut and Jobs Act that recently passed is the most sweeping tax reform since the Reagan administration. The legislation will impact everyone, some will reap more benefits than others.
On a range of points, commercial real estate will see positive benefits under the new law. Let’s review a few of the changes that have the potential to fuel commercial real estate.
Frisco, Texas-based Healthcare Highways, Inc. recently executed a lease for 13,008 SF at 14201 Wireless Way in northwest Oklahoma City. The healthcare company recently acquired several new contracts in Oklahoma to provide health plans to both private and public entities. Healthcare Highways was founded in 2010. Craig Tucker of Price Edwards & Company handled the transaction.
Park Place Apartments of Elk City Sells for $1,350,000
Price Edwards & Company was named Management Company of the Year at the 2017 Nova Awards, presented by the Apartment Association of Central Oklahoma. The ceremony was held December 9th at the Embassy Suites in Norman, Oklahoma.
With the notable exceptions of the few major size office buildings constructed or renovated in the last ten years or so, most of the large multi-tenant office buildings in Oklahoma City were constructed in the 1980s or earlier. Those buildings and many smaller ones were constructed before the passage of the Americans with Disabilities Act in 1990, or ADA as it is commonly referred to today.