REAL ESTATE HIGHLIGHTS
OKLAHOMA CITY RETAIL MARKET OVERVIEW For the seven-county Oklahoma City metropolitan area, the 2023 calendar year total taxable retail sales increased by 2.7% over the prior year. Year- over-year increases in both 2021 (+13.6%) and 2022 (+11.6%) were the largest increases seen in at least 30 years. At approximately $29.4 billion, the Oklahoma City metro accounts for 44% of the taxable retail sales for the entire state of Oklahoma and 36% of the state’s population. This continues to make the Oklahoma City metro a driving force for retail trade in the state. Per the Price Edwards 2023 OKC Year End Retail Market Summary, retail vacancy in the Oklahoma City market ended the year at 8.9%, up slightly from 8.5% the prior year. Total retail square footage has grown to over 50 million square feet.
OKLAHOMA CITY INDUSTRIAL MARKET OVERVIEW The CoStar Industrial Market Report (January 2024) reports that the Oklahoma City market has an inventory of 148 million SF of industrial space. Rent grew by 4.1% over the prior year, just slightly above historical averages (3.5%). The vacancy rate in early 2024 was 5% and is expected to rise modestly in 2024. There is currently 4.1 million SF of industrial construction underway in Oklahoma City. Around 85% of that space underway is in the Southwest Submarket (3.6 million SF). With 88% of the total construction preleased, CoStar is not anticipating these projects to have an impact on market fundamentals. OKLAHOMA CITY OFFICE MARKET OVERVIEW Oklahoma City’s office market experienced rent growth of 1.6% over the past year and outpaced the nation (under 1%). The Oklahoma City vacancy rate of 10% is also outperforming the nation (slightly under 14%). According to CoStar, there is currently about 70 million SF of office space in the Oklahoma City market. As of early 2024, just under 700,000 SF of office product is currently under construction. Asking rates average $19.54 per square feet across all property types ($16.70- $22.88)
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2024 ECONOMIC OUTLOOK
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