oklahoma city 2013 my... · office market summary 1 central business district submarket 2–3...

Oklahoma City2013 Mid-Year

Office Market Summary

TABLE OF CONTENTS

Office Market Summary 1

Central Business District Submarket 2–3

Northwest Submarket 4–6

North Submarket 7–9

Midtown Submarket 10

West Submarket 11

Suburban Submarket 12

Medical Office Submarket 13

The information contained herein has been obtained from reasonably reliable sources. Price Edwards & Company makes no guarantee, either express or implied, as to the accuracy of such information.All data contained herein is subject to errors, omissions and changes. Reproduction in whole or in part, without prior written consent is prohibited.

Submarket Map

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OKC Total O�ce Market Vacancy

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OKC OFFICE MARKET RENTAL RATES

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The Oklahoma City office market held steady during the first half of 2013. Overall, the city’s vacancy rate rose from 16.2% to 16.5%. The market’s vacancy stood at 16.4% a year ago. In general, all submarkets performed fairly well except for the North submarket which had negative absorption of just over 90,000 square feet. That anomaly resulted in total negative absorption of nearly 47,000 square feet. The North submarket experienced some general softening partly due to a reduction of Chesapeake’s leased space outside its own campus and some more accurate reporting at the Class C Lincoln Plaza which is now in receivership after languishing for the past two to three years under previous ownership.

The Central Business District’s vacancy rate decreased from 24.6% to 24.3%. However, the CBD should take a hit in the second half of the year when Devon Energy’s lease of approximately 225,000 square feet at First National Center expires. The most impressive aspect of the downtown market is the dwindling supply of Class A space. Class A vacancy shrunk from 4.0% to 2.3% which is likely an all-time low. Consequently, Class A rental rates increased from $18.36 to $19.55 per square foot, which is an all-time high. The impact of Devon’s vacation of it space at the Class C First National Center will definitely impact the downtown market, but not the bellwether Class A buildings. Class C vacancies will likely increase to an all-time high of over 65% in the second half of the year. As we have stated before, many of these buildings are faced with functional obsolescence and it remains to be seen what becomes of them. Given the increase in demand for downtown housing, we suspect a few may be converted to that or other alternative uses. If these older obsolete buildings were removed from the market, the CBD’s vacancy is realistically closer to a reasonably healthy rate of 13.5%. Parking woes continue to be an issue for the CBD, but help is on the way with the construction of an 830-space garage on the west side of downtown. Several other new garages and garage expansions are still in the planning stages, but further relief is anticipated.

The biggest news for the CBD is the recent report that a new office tower is on tap for the land currently occupied by the Stage Center which is catty-corner to the Devon Tower. Speculation is rampant regarding

the anchor tenant for what is reported to be an at least 20-story tall tower. It is likely that the construction of such a building will create offsetting vacancy the anchor tenant leaves behind as we do not believe, and it certainly has not been reported, that the tenant is new to the market. The overall suburban vacancy rate ticked upward from 11.8% to 12.4% which was primarily attributable to the previously mentioned changes in the North submarket. The Northwest submarket, which is the city’s largest, remained level at 7.7% vacant. Class A buildings in the Northwest showed continued tightening with vacancies falling from 4.8% to 3.7%. Larger Class A users currently have very few space alternatives in this popular submarket and with Class A rental rates climbing to $21.80 per square foot, some new construction is inevitable in the next few years. If not for developers’ fears about the future of Chesapeake Energy and the amount of space that would be added to inventory, new construction would have likely been added to the market by now. As it stands, most of the better quality space that Chesapeake has vacated has been quickly absorbed by the pent-up demand of tenants in need of quality space. Approximately 80% of the approximately 100,000 square feet Chesapeake vacated at the Class A IBC Center was leased within six months of it being placed on the market and at higher rental rates than Chesapeake was paying. We expect that similar results will be seen at the Class A Valliance Tower where Chesapeake recently vacated approximately 25,000 square feet.

The Memorial Road corridor of the Northwest submarket is particularly strong as Class A space in that area is virtually non-existent. In fact, 8 of the 9 Class buildings in that corridor report full occupancy.

In general, we expect the market to remain healthy for the next few years. There will be fits and starts as corporate relocations within the market create inventory and opportunities for other large users. So long as the local and national economies continue to improve and remain healthy and new construction is undertaken at a moderate rate, the local office market should remain in a reasonable balance.

2013 Mid-Year OKC Office Market Totals RSF14,963,868

Vacant SF2,472,968

Vacant %16.5%

Rate$16.48

Oklahoma City2013 Mid-Year Office Market Summary

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HISTORICAL CBD VACANCY

HISTORICAL CBD RENTAL RATES BY CLASS

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2013 Mid-Year Oklahoma City Office Market SummaryCenTRal BuSineSS DiSTRiCT SuBMaRKeT

2013 MiD-YEAR CENTRAL BUSiNESS DiSTRiCT REViEW

• Aggregate vacancy rates decreased from 24.6% to 24.3%

• Class A vacancy decreased from 4.0% to 2.3%

• Class B vacancy increased from 22.7%to 23.4%

• Class C vacancy remained flat at 51.7%

• Aggregate rental rates increased from $15.49 per SF to $16.47 per SF

• Class A rates increased from $18.36 per SF to $19.55 per SF

• Class B rates increased from $14.74 per SF to $16.20 per SF

• Class C rates increased from $13.13 per SF to $13.19

• The CBD experienced positive absorption of 15,000 SF during the first half of 2013

2013 CenTRal BuSineSS DiSTRiCT FOReCaST

• Vacancy rates will continue to increase as more Devon space hits the market in 2013.

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Downtown Oklahoma City

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2013 Mid-Year Oklahoma City Office Market SummaryCenTRal BuSineSS DiSTRiCT SuBMaRKeT

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CBD Year Built Floors RSF Vacant SF Vacant % Rate CaF100 Park Ave Building 1923/64 12 99,752 23,991 24% $15.00 12%100 Park Ave101 Park Avenue Building 1936 14 197,042 61,253 31% $14.50 16.34%101 Park Ave.20 N. Broadway 1981 19 307,388 0 0% $16.00 20%20 N BroadwayBank of Oklahoma Plaza 1972 16 233,808 25,109 11% $14.50 20%201 Robert S. KerrChase Tower 1971 36 514,317 202,009 39% $17.00 15%100 N. BroadwayCity Place 1931/85 33 251,449 70,715 28% $14.50 14%204 N. RobinsonCorporate Tower 1980 14 277,849 13,462 5% $17.00 17.6%101 N. RobinsonCourt Plaza 1923/79 10 78,381 38,668 493% $12.00 14%228 Robert S. KerrDowell Center 1926 20 205,000 205,000 100% $14.00 15%134 Robert S. KerrFirst National Center 1931 32 972,267 478,027 49% $13.00 18.9%120 N. RobinsonHightower Building 1929 10 107,152 21,371 20% $15.00 15%105 N. HudsonLeadership Square 1984 21 735,514 15,050 25% $20.00 20%211 N. RobinsonOklahoma Tower 1982 31 568,960 24,477 4% $20.00 20%210 Park Ave.One North Hudson 1927 11 73,000 0 0% $12.00 12%401 W. SheridanRobinson Plaza 1992 10 195,702 35,833 18% $22.00 17.8%55 N. RobinsonRobinson Renaissance 1927/88 12 174,840 39,382 23% $13.50 25%119 N. RobinsonSonic Building 2003 4 100,654 0 0% $24.50 8%300 Johnny Bench DriveThe Reserve 1922/97 4 71,616 0 0% $16.00 20%226 Dean A. McGee Avenue

Totals 5,164,691 1,254,347 24.3% $16.47

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HISTORICAL NORTHWEST VACANCY

HISTORICAL NORTHWEST RENTAL RATES BY CLASS

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2013 MiD-YeaR nORThweST SuBMaRKeT ReView

• Aggregate vacancy rates remained at 7.7%

• Class A vacancy decreased from 4.8% to 3.7%

• Class B vacancy increased from 6.0% to 6.7%

• Class C vacancy increased from 15.8% to 17.9%


• Class A rental rates increased from $21.33 per SF to $21.80 per SF

• Class B rental rates remained level at $16.35 per SF

• Class C rental rates decreased from $13.52 per SF to $13.47 per SF

• The Northwest Oklahoma City submarket had zero net absorption.

2013 nORThweST SuBMaRKeT FOReCaST

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2013 Mid-Year Oklahoma City Office Market SummarynORThweST SuBMaRKeT

• Vacancy rates rise as owner-occupied buildings are made available for multi-tenant occupancy.

• Quoted rates will increase as landlords enjoy a healthy market with no new construction underway.

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northwest Year Built Floors RSF Vacant SF Vacant % Rate CaF2525 Expressway 1974 6 62,410 11,589 19% $13.00 15%2525 Northwest Expressway4100 Perimeter Center 1982 3 47,317 8,070 17% $13.00 15%4100 Perimeter Center Dr.4101 Perimeter Center 1982 3 47,317 1,256 3% $13.00 15%4101 Perimeter Center Dr.4141 Northwest Expressway 1982 3 46,464 0 0% $14.00 16%4141 Northwest Expressway4200 Perimeter Center 1982 2 61,327 4,160 7% $13.00 15%4200 Perimeter Center Dr.4700 Gaillardia 2007 2 42,970 0 0% $22.00 15%4700 Gaillardia Parkway4727 Gaillardia 2009 2 37,624 0 0% $23.00 18%4727 Gaillardia Parkway4747 Gaillardia 2009 2 26,016 0 0% $23.00 18%4747 Gaillardia Parkway4801 Gaillardia 2000 3 74,432 0 0% $24.00 18.4%4801 Gaillardia Parkway4811 Gaillardia 2008 3 41,450 0 0% $21.00 15%4811 Gaillardia Parkway5100 Brookline 1974 10 107,496 0 0% $16.00 15%5100 Brookline5909 NW 1982 7 101,146 9,061 9% $14.50 15%5909 Northwest ExpresswayAAA Operations Center 2009 3 145,635 0 0% $20.00 0%3100 Quail Springs ParkwayAmerican Cancer Society 2001 1 45,000 0 0% $17.50 0%8400 Silver CrossingAtrium Towers 1980 6 156,106 0 0% $16.00 15%3501-3503 N.W. 63rdAvaya Building 1998 1 57,000 0 0% $20.00 0%14400 Hertz Quail Springs ParkwayBradley Square 1984 1 30,000 0 0% $14.00 0%2932 N.W. 122ndBrookline Offices 1972 1 40,009 10,810 27% $12.00 0%6051 N. BrooklineCaliber Park One & Two 2007 2 81,520 0 0% $21.00 17.2%14201-14301 Caliber DriveCenter 3000 1972 2 115,800 36,263 31% $12.00 12%3000 United Founders Blvd.Chase Bank Building 1976 4 54,793 19,368 35% $15.50 15%6303 N Portland AveChase Park 1981 2 30,281 2,317 8% $13.50 16.5%4323 NW 63rd StCommerce Center South 1982 3 65,857 0 0% $14.00 11%9520 N. MayCoppertree Centre 1982 3 26,928 0 0% $13.00 10%3727 N.W. 63rdCross Rock Place 1992 2 60,049 0 0% $22.00 12%3595 W Memorial RdCross Rock Plaza i 1984 3 61,289 0 0% $22.00 15%13801 Wireless WayDobson Communications 2001 3 144,420 0 0% $22.50 16%14101-14201 Wireless WayEnterprise Plaza 1981 3 92,180 0 0% $16.00 15%5600 N. MayFBi Building 1999 1 110,000 0 0% $24.00 0%3301 W. MemorialFifty-Six Expressway Place 1982 3 58,340 14,277 25% $12.50 0%5601 N.W. 72ndFive Corporate Plaza 1980 3 49,486 0 0% $16.00 15%3625 N.W. 56thGrand Centre 1979 5 101,217 6,953 7% $17.00 15%5400 N.W. Grand Blvd.Hartford insurance 1999 1 100,000 0 0% $18.00 0%7800 N.W. 85th Terrace

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iBC Center 1983 10 278,843 8,367 3% $22.00 15%3817 Northwest ExpresswayJamestown Office Park 1972/79 2 74,000 11,930 16% $13.00 10%3037 N.W 63rdLake Park Tower 1983 6 103,084 10,121 10% $15.00 15%6525 N. MeridianLakepointe Towers 1981 6 177,746 61,407 35% $15.00 15%4005-4013 Northwest ExpresswayLakepointe West 1982 6 85,246 7,559 9% $14.50 15%4045 N.W. 64thLakeshore Tower 1982 3 33,900 3,889 11% $13.00 15%4301 N.W. 63rdLandmark Towers 1969/72 10 306,960 23,375 8% $15.00 12%3535-3545-3555 NW 58thMercury insurance Building 1986 2 100,103 0 0% $12.50 12.5%7301 Northwest ExpresswayMutual Assurance Building 1999 2 40,000 3,147 8% $18.00 12%3121 Quail Springs ParkwayNorth Shore Office Plaza 2001 5 56,418 0 0% $23.00 16%10900 Hefner DriveNorthwest Office Center 1973 2 85,833 22,838 27% $13.50 15%4334 Northwest ExpresswayOil Center 1973/1994 12 249,657 30,235 12% $16.00 13%2601 Northwest ExpresswayOne Corporate Plaza 1979 1 63,011 8,124 13% $15.50 15%3525 NW. 56thParkway Commons 2003 2 40,729 0 0% $20.00 15%13900 N. PortlandPortland Plaza 1969 3 35,425 9,037 26% $12.00 14%5700 N. PortlandQuail Commerce Center 1998 1 128,500 0 0% $18.50 0%3201 Quail Springs ParkwayQuail Creek North 1973 2 36,124 6,198 17% $12.50 15%11032 Quail Creek Rd.Quail Ridge Tower 1975 4 46,950 20,395 43% $13.00 16.5%11212 N. MayQuail Springs Parkway Plaza i & ii 1986 6 298,610 24,406 8% $22.00 14%14000 Quail Springs ParkwayRees Plaza at East Wharf 2002 3 40,998 0 0% $25.00 16.8%9211 Lake Hefner ParkwaySprint PCS Building 1999 1 89,132 0 0% $15.00 0%8525 Silver CrossingSt. Martins Building 1990 2 59,712 2,671 4% $16.50 13%9020 N. MayThe Summit Building 1975 5 50,000 0 0% $12.00 13%5929 N. MayThree Corporate Plaza 1980 3 49,920 6,677 13% $15.50 15%3613 NW. 56thTwo Corporate Plaza 1982 3 85,551 0 0% $15.00 14%5555 NW. Grand Blvd.Union Plaza 1982 18 248,802 17,817 7% $19.50 14%3030 Northwest ExpresswayWilliams Sonoma 1998 1 35,862 0 0% $17.50 0%7720 NW 84th StTotals 5,222,995 402,317 7.7% $17.31

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iBC Center 1983 10 278,843 8,367 3% $22.00 15%3817 Northwest ExpresswayJamestown Office Park 1972/79 2 74,000 11,930 16% $13.00 10%3037 N.W 63rdLake Park Tower 1983 6 103,084 10,121 10% $15.00 15%6525 N. MeridianLakepointe Towers 1981 6 177,746 61,407 35% $15.00 15%4005-4013 Northwest ExpresswayLakepointe West 1982 6 85,246 7,559 9% $14.50 15%4045 N.W. 64thLakeshore Tower 1982 3 33,900 3,889 11% $13.00 15%4301 N.W. 63rdLandmark Towers 1969/72 10 306,960 23,375 8% $15.00 12%3535-3545-3555 NW 58thMercury insurance Building 1986 2 100,103 0 0% $12.50 12.5%7301 Northwest ExpresswayMutual Assurance Building 1999 2 40,000 3,147 8% $18.00 12%3121 Quail Springs ParkwayNorth Shore Office Plaza 2001 5 56,418 0 0% $23.00 16%10900 Hefner DriveNorthwest Office Center 1973 2 85,833 22,838 27% $13.50 15%4334 Northwest ExpresswayOil Center 1973/1994 12 249,657 30,235 12% $16.00 13%2601 Northwest ExpresswayOne Corporate Plaza 1979 1 63,011 8,124 13% $15.50 15%3525 NW. 56thParkway Commons 2003 2 40,729 0 0% $20.00 15%13900 N. PortlandPortland Plaza 1969 3 35,425 9,037 26% $12.00 14%5700 N. PortlandQuail Commerce Center 1998 1 128,500 0 0% $18.50 0%3201 Quail Springs ParkwayQuail Creek North 1973 2 36,124 6,198 17% $12.50 15%11032 Quail Creek Rd.Quail Ridge Tower 1975 4 46,950 20,395 43% $13.00 16.5%11212 N. MayQuail Springs Parkway Plaza i & ii 1986 6 298,610 24,406 8% $22.00 14%14000 Quail Springs ParkwayRees Plaza at East Wharf 2002 3 40,998 0 0% $25.00 16.8%9211 Lake Hefner ParkwaySprint PCS Building 1999 1 89,132 0 0% $15.00 0%8525 Silver CrossingSt. Martins Building 1990 2 59,712 2,671 4% $16.50 13%9020 N. MayThe Summit Building 1975 5 50,000 0 0% $12.00 13%5929 N. MayThree Corporate Plaza 1980 3 49,920 6,677 13% $15.50 15%3613 NW. 56thTwo Corporate Plaza 1982 3 85,551 0 0% $15.00 14%5555 NW. Grand Blvd.Union Plaza 1982 18 248,802 17,817 7% $19.50 14%3030 Northwest ExpresswayWilliams Sonoma 1998 1 35,862 0 0% $17.50 0%7720 NW 84th StTotals 5,222,995 402,317 7.7% $17.31

2013 MiD-YeaR nORTh SuBMaRKeT ReView

• Aggregate vacancy rates increased from 15.6% to 18.5%

• Class A vacancy increased from 2.9% to 7.4%

• Class B vacancy increased from 12.0% to 12.1%

• Class C vacancy increased from 49.5% from 61.3%


• Class A rental rates remained flat at $21.75 per SF

• Class B rental rates increased from $16.35 per SF to $16.40 per SF

• Class C rental rates increased from $12.49 per SF to $12.76 per SF

• The Oklahoma City North submarket experienced negative absorption of 91,000 SF during the first half of 2013.

2013 nORTh SuBMaRKeT FOReCaST

• Vacancy rates could begin to shrink as space placed in the market by Chesapeake Energy is absorbed.

• Rental rates will remain near current levels

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2013 Mid-Year Oklahoma City Office Market SummarynORTh SuBMaRKeT

north Year Built Floors RSF Vacant SF Vacant % Rate CaF1001 Wilshire 2003 4 43,316 0 0% $20.00 13%1001 W Wilshire Ave50 Penn Place 1973 16 178,315 27,198 15% $16.50 12%5100 N. Pennsylvania5100 Circle Building 1981 6 74,799 0 0% $14.00 14%5100 N. Classen Blvd.7 & 9 Broadway Executive Park 1979 1 30,505 0 0% $16.00 0%200 NW 66thBroadway North 1974 2 25,703 5,384 21% $15.00 13%7301 N. Broadway Broadway Plaza 2003 3 50,726 0 0% $12.00 13%16 NW 63rdBroadway Sixty-Eight 1979 3 40,000 4,934 12% $14.50 14%6801 N. BroadwayCentral Park One 1982 6 113,134 0 0% $16.50 14%525 Central Park Dr.Central Park Two 1984 6 124,463 0 0% $16.50 14%515 Central Park Dr.Chase Bank Building 1981 4 39,367 2,500 6% $15.00 9%1200 NW 63rd StColumbus Square 1982 3 36,559 0 0% $16.00 15%1001 NW 63rdFive North Broadway 1972 3 44,805 0 0% $16.00 15%6601 N. BroadwayHarvey Parkway 1982 6 97,912 82,000 84% $17.00 17%301 NW 63rdLincoln Plaza Office Park 1968 2 243,423 222,664 91% $12.00 12%4545 Lincoln Blvd.Market Center i 2008 2 46,368 0 0% $22.75 0%701 Market DrMarket Center ii 2009 2 50,000 0 0% $22.75 12%713 Market DrNichols Hills Executive Center 1979 2 52,426 5,879 11% $16.50 0%1000 W. WilshireNichols Hills Tower 1975 4 30,759 19,274 63% $15.00 11%6410 Avondale DrOne Benham Place 1984 8 152,959 2,360 2% $18.50 15%9400 N. BroadwayOne Broadway Center 1980 3 34,984 0 0% $14.00 9%100 NW 63rdOne Broadway Executive Park 1979 3 58,832 1,077 2% $15.50 12%201 NW 63rdOne Western Plaza 1989 2 50,948 10,000 20% $16.00 16.5%5500 N. WesternParagon Building 1981 5 110,791 4,189 4% $16.00 15%5801 N. BroadwayPavilion Building 1974 3 39,895 4,000 10% $12.50 12%6701 N. BroadwayPenn Park 1974 3 78,643 26,910 34% $13.50 13%5001-5005-5009-5015 N. PennRegistry 1980 2 93,167 6,868 7% $14.00 15%2200 NW 50thRichmond Square 1982 2 27,606 7,983 29% $15.50 12%4900 Richmond SquareSanta Fe North 1981 4 44,000 0 0% $14.50 14%6 NE. 63rdThe Commons on Broadway 2009 3 50,188 0 0% $21.75 18%11600 Broadway ExtensionThree Broadway Executive Park 1977 3 45,256 16,868 37% $15.50 10%6501 N. BroadwayTwo Broadway Executive Park 1980 3 52,205 13,247 25% $15.50 11%205 NW 63rdValliance Tower 1983 22 299,137 35,833 12% $22.00 17.8%1601 Northwest ExpresswayWaterford A 1983 4 150,048 6,371 4% $21.50 16%6301 Waterford Blvd.

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Waterford B 1983 2 35,468 4,538 12.79% $21.50 16%6303 Waterford Blvd.Waterford C 1983 4 81,575 1,646 2.02% $21.50 16%6305 Waterford Blvd.Waterford D 1983 2 34,087 0 0% $21.50 16%6307 Waterford Blvd.Totals 2,762,369 511,723 18.5% $17.10

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Expands into the Tulsa Market Following the acquisition of Beacon Commercial Group, Price Edwards & Company has announced plans to expand into the Tulsa market. Tanda Francis has been named as the firm’s Managing Broker for the Tulsa area. With the combination of the new Tulsa office and Price Edwards’ 25 years of experience and expertise, the company will be poised to better serve their clients in the Tulsa Metro Area. Tanda Francis

Managing Broker - Tulsa

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HISTORICAL MIDTOWN VACANCY

HISTORICAL MIDTOWN RENTAL RATES

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2013 Mid-Year Oklahoma City Office Market SummaryMiDTOwn SuBMaRKeT

2013 Mid-Year Oklahoma City Office Market SummaryMiDTOwn SuBMaRKeT

2013 MiD-YeaR MiDTOwn SuBMaRKeT ReView

• Aggregate vacancy rates increased from 12.6% to 14%

• Class B vacancy rates increased from 13.3% to 14.7%

• Class C vacancy rates increased from 5.0% to 6.3%

• Aggregate rental rates stayed at $13.76 per SF

• Class B rental rates were flat at $13.96 per SF

• Class C rental rates remained flat at $11.71 per SF

• The Midtown Submarket experienced negative absorption of 19,000 SF during the first half of the year.

2013 MiDTOwn SuBMaRKeT FOReCaST

• Vacancy rates will likely increase.

• Rental rates will remain at or near current levels.

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The Cameron Building

Midtown Year Built Floors RSF Vacant SF Vacant % Rate CaF2000 Classen Center 1965 6 318,605 0 0% $14.00 10%2000 N Classen Blvd4801 Classen Building 1974 2 33,151 7,226 22% $11.00 0%4801 N Classen BlvdCameron Building 1955/57 5 81,493 0 0% $12.00 10%2901 Classen BlvdClassen Park I 1982 3 52,800 3,625 7% $12.00 13%3800 N Classen BlvdClassen Park II 1980 2 52,800 0 0% $12.00 13%3700 N Classen BlvdSanta Fe Building 1954/82 4 55,203 2,000 4% $10.50 10%3814 N. Santa Fe Ave.Shepherd Mall Office Complex 1964/95 2 709,000 169,495 24% $14.50 0%2401 NW 23rd StreetTotals 1,303,052 182,346 14% $13.76

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HISTORICAL WEST VACANCY

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2013 Mid-Year Oklahoma City Office Market SummaryweST SuBMaRKeT

2013 MiD-YeaR weST SuBMaRKeT ReView

• Aggregate vacancy rates decreased from to 34.1% to 24.3%

• Class B vacancy totals decreased from 29.8% to 17.6%

• Class C vacancy totals decreased from 40.3% to 34.1%

• Aggregate rental rates increased from $11.85 per SF tp $12.22 per SF


• Class C rental rates remained flat at $12.02 per SF

• The West Oklahoma City Office Market experienced positive absorption of 49,000 SF during the first half of 2012.

2013 weST SuBMaRKeT FOReCaST

• Vacancy rates should improve slightly

• Rental rates in the submarket should remain flat

west Year Built Floors RSF Vacant SF Vacant % Rate CaF300 Meridian Place 1982 2 78,650 37,205 47% $12.00 11%300 N Meridian AveBank 2 Tower 1975 7 65,520 0 0% $13.00 12%909 S. MeridianMetro Office Park 1981 3 60,750 32,631 54% $11.00 0%4300 Highline Blvd.Sovereign Office Park 1983 1 42,260 33,808 80% $10.00 0%1220 Sovereign RowThe Parkway 1982 6 96,960 13,683 14% $14.00 15%1300 S. MeridianWest Park Office Center 1986 1 58,786 0 0% $12.75 0%715 MetropolitanWill Rogers Office Park 1 1984 1 52,779 4,908 9% $11.50 16%4400 Will Rogers ParkwayWill Rogers Office Park 2 1985 1 46,748 0 0% $11.50 10%4350 Will Rogers ParkwayTotals 502,453 122,235 24.3% $12.22

2013 Mid-Year Oklahoma City Office Market SummaryweST SuBMaRKeT

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HISTORICAL SUBURBAN ABSORPTION

HISTORICAL SUBURBAN RENTAL RATES BY CLASS

$10.00

$15.00

$20.00


20132012201120102009

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2013 MiD-YeaR SuBuRBan SuBMaRKeT ReView

• Aggregate vacancy rates increased from 11.8% to 12.4%

• Class A vacancy increased from 4.2% to 4.9%

• Class B vacancy remained flat at 10.2%

• Class C vacancy increased from 27.4% to 30.6%


• Class A rental rates increased from $21.46 per SF to $21.78 per SF


• Class C rental rates increased from $12.92 per SF to $12.97 per SF

• Suburban Oklahoma City experienced negative absorption of 61,000 SF during the first half of 2013.

2013 SuBuRBan SuBMaRKeT FOReCaST

• Suburban rental rates should continue to trend upward

• Suburban vacancy rates should rise during the second half of the year as multi-tenant buildings are added.

• New speculative construction is probably still a year or so away.

2013 Mid-Year Oklahoma City Office Market SummarySuBuRBan SuBMaRKeT

Suburban Submarket Totals 9,799,177 1,218,621 12.4% $16.48

Quail Springs Parkway Plaza

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2013 Mid-Year Oklahoma City Office Market SummaryMeDiCal OFFiCe SuBMaRKeT

Medical Year Built Floors RSF Vacant SF Vacant % Rate CaFDeaconess Medical North 1996 3 55,209 9,643 17% $19.00 0%5701 N Portland AveDeaconess Medical South 1991 6 119,726 1,644 1% $19.00 0%5401 N Portland AveMcAuley Physician Offices 1986 4 42,246 1,099 3% $17.00 0%4205 McAuley BlvdNeuroScience institute 1998 3 54,558 1,638 3% $19.00 0%4120 W Memorial RdNorthwest Medical Center 1981 6 82,664 0 0% $16.00 13.4%3330 NW 56th StParkway Commons Medical Center 2008 2 27,000 0 0% $20.00 15%14100 Parkway Commons DrParkway Medical Center 1980 2 44,983 0 0% $19.00 10%3500 NW 56th StPasteur Medical Building 1959 5 83,858 14,833 18% $16.50 15%1111 N. Lee Ave.Physicians & Surgeons Bldg 1962 11 75,000 3,700 5% $15.00 0%1211 N Shartel AvePhysicians Bldg - A 1970 9 68,349 825 1% $16.00 14%3435 NW 56th StPhysicians Bldg - B 1986 9 128,030 4,368 3% $19.50 14%3433 NW 56th StPhysicians Bldg - C 1975 8 75,158 1,137 2% $16.00 14%3400 NW ExpresswayPhysicians Bldg - D 1994 8 120,813 1,280 1% $18.00 14%3366 NW ExpresswayPlaza Physician Offices 1992 7 70,050 2,999 4% $18.00 0%4140 W Memorial RdPresbyterian Professional Bldg 1995 4 91,122 0 0% $14.00 15%711 Stanton L YoungQuail Brook Medical 2008 3 34,222 8,425 25% $20.00 15%13901 McAuley BlvdSaints Medical Plaza 2008 5 82,010 4,160 5% $15.66 16.9%NW 9th St & N Walker AveSMC Medical Office Bldg 1967 3 29,054 3,170 11% $13.50 0%4200 S Douglas AveSMC Medical Plaza 1994 5 58,648 688 1% $16.50 0%4221 S Western AveSt. Anthony ASC 1998 2 36,551 3,400 9% $19.80 14%6205 N Santa Fe AveSt. Anthony Healthplex East 2012 3 45,000 14,058 31% $26.00 12%3400 S. Douglas Blvd.St. Anthony Healthplex South 2011 3 45,000 10,545 23% $26.00 12%13500 S. Tulsa AveSt. Anthony North POB 1990 2 28,281 3,689 13% $17.50 19.4%6201 N Santa Fe AveSt. Anthony Prof. Bldg 1987 6 83,898 7,689 9% $18.21 11%608 NW 9th StTower Physician Offices 1986 11 93,639 3,622 4% $16.00 0%4200 W Memorial RdTotal 1,675,069 102,612 6.1% $17.74

St. Anthony’s Healthplex

Price Edwards & Company | 210 Park Avenue, Suite 1000, Oklahoma City, OK 73102 | Phone (405) 843–7474 | Fax (405) 236–1849www.priceedwards.com

Price Edwards & Company TechnologyAs a forward thinking company, Price Edwards & Company strives to stay on the cutting edge of business technology. We maintain a five-member, full-time Information Technology staff, which allows us to custom develop and provide products and services to help our clients achieve their real estate goals.

priceedwards.comHundreds of tenant prospect, buyer, and seller leads originate from our primary Internet presence: priceedwards.com. Through the website, we maintain a comprehensive listing of all the properties we represent. Our website also houses staff bios, press releases, market studies, and functions as a gateway to our various other online tools. Search engine optimization is a priority for priceedwards.com and ensures that our listings rank among the top of Internet searches. Price Edwards deployed a mobile version of priceedwards.com that uses the GPS in smartphones to help located nearby properties and quickly put clients in contact with brokers.

Work Order SystemWe have created our own work order system to service our tenants. Building engineers are instantly notified on their phones via text message. The real power of our system is found in its ability to report on the status of a work order. Price Edwards can report on all open work orders by property, by engineer, or by status. Using our system allows us to identify trends or problems early. This information can be included in monthly reports delivered via email on a schedule providing a higher level of transparency.

Client ReportingThe Price Edwards & Company Extranet uses Microsoft SharePoint to deliver unparalleled client reporting. Through our secure website, clients can instantly receive all monthly reports. In addition, clients have access to all historical reports, copies of lease files, and contract information with profiles of all the Price Edwards staff assigned to their asset.

Market DataPrice Edwards & Company has been the top source for Oklahoma City commercial real estate data for over twenty years. Our popular semi-annual market summaries have now been taken interactive. Price Edwards launched okcmarketdata.com in 2008. This web app version of our market summaries allows the user to “slice and dice” the Oklahoma City commercial real estate market by asset type, lease rates, submarket, and sales date. Properties represented by Price Edwards have extended information including available suites, f loor plans, and photos.

Email MarketingOur email marketing program is second to none. We maintain a list of thousands of investor and real estate professional contacts, and use that information to market an asset to a target audience, assuring maximum exposure. Our strategy encourages a potential client to follow up via priceedwards.com and allows us to track the response of a particular message.

Mobile AppsPrice Edwards & Company developed its own native iPhone and iPad applications, now available in the Apple App Store. The products allow users, free of charge, to review property data on office buildings, shopping centers, industrial projects, and apartment communities across the Oklahoma City metro area. Information includes: lease rates, occupancy, sales history, performance relative to the market and other useful tools for property owners and investors. The iPad app also features content from Price Edwards’ commercial real estate market summaries. Development is underway to port the apps to run on Google’s Android platform. Price Edwards is the only firm to provide apps specific to the Oklahoma City commercial real estate market.

oklahoma city 2013 my... · office market summary 1 central business district submarket 2–3...

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