Despite a year of political uncertainty, talk of inflation, and rising interest rates the current Oklahoma City Multi-Tenant Industrial Market remains strong with a vacancy rate of 4.64%, down from 8.38% in 2021. This represents the lowest vacancy in at least 18 years. This extremely low vacancy along with rising rental rates has led to a large spike in speculative warehouse construction with over 3 million square feet currently in development. Given the strength of the market, much of this space has already been pre-leased prior to completion. As tight as our market has been for the last five to seven years, the hope is that this additional speculative construction will help ease some of that strain and create a healthier market. Oklahoma City continues to be a “Landlord’s market” as rental rates experienced the largest year-over-year increase in our history.
Given its role in the supply chain, it is no surprise that bulk warehouse saw a vacancy decline from 8.17% in 2021 to 5.50% in 2022, the lowest rate since 2013’s 4.5%. The north submarket increased year over year but only slightly from 1.77% in 2021 to 4.26% in 2022. The southwest submarket, which makes up almost 63% of the total supply decreased to 5.37% from 6.45% last year. The southeast submarket saw a significant decrease in vacancy from 23.08% to 7.58% but represents only about 16% of the overall market. The lack of inventory in the more desired north and southwest industrial markets h as seemed to trickle into the southeast market... Read More