Year-end numbers for 2021 continued in a positive direction for Oklahoma City, showing a reversal from some of the more immediate effects of COVID19 in 2020. The Central Business District, Midtown, North, and Northwest submarkets all ended the year with positive absorption over year-end figures for 2020. The West Submarket was the only submarket to experience negative absorption. While most of these gains occurred in the first half of 2021, these submarkets continued to post positive absorption in the second half of the year, except for the Northwest submarket, which posted a slight loss for the second half of 2021. As a result, the total absorption for the Oklahoma City office market for 2021 was a positive 416,751 square feet. In addition, the office market inventory increased from 16,738,957 to 17,098,148 square feet, and with a total occupancy of 13,096,369 square feet, we are currently at a vacancy rate of 23.4% market-wide. Market rental rates also saw an uptick from 2020’s weighted average of $19.45 per square foot to $19.66 per square foot.
The Northwest submarket experienced significant positive absorption in the first half of 2021, with over 239,000 square feet absorbed. The amount of positive absorption proved to be a reversal from the considerable increase in vacancy we saw in the year-end numbers for 2020. Including the negative absorption of approximately 54,000 square feet in the second half of this year, the Northwest Submarket still ended with a very healthy 184,378 square feet of positive absorption and a slight increase in rental rates from $18.62 to $18.72 per square foot. As a result, the overall vacancy for the Northwest Submarket decreased significantly from 26.6% at the end of 2020 to 23.1%. The Northwest Submarket also experienced a slight increase in rental rates from $18.62 to $18.72 per square foot... Read More