Oklahoma City’s office market has experienced a dynamic first half in 2023, offering a blend of opportunities and challenges across its submarkets. The total market vacancy rate, which measures the unoccupied space in the market, has decreased from 25.2% at the year-end of 2022 to 24.7%. On the surface this would appear to be a positive sign, however, the overall absorption for the office market was a -11,146 SF. There is generally an inverse relationship between absorption and the vacancy rate, but this relationship can be affected by the removal of office buildings from the data set that were recategorized.
Although demand has returned since the start of 2023 after falling in the second half of 2022, household formation has been stymied by a combination of persistent inflation, rapidly rising interest rates, and rising unaffordability.12 Month Deliveries in SF: 2,446 12 Month Net Absorption in SF: 845 Vacancy Rate: 3.5% 12 Month Rent Growth: 3.0
In the first half of 2023, Bed Bath & Beyond and Tuesday Morning announced they were closing all of their San Diego area stores, impacting more than 300,000 SF of retail space.12 Month Deliveries in SF: 169 K 12 Month Net Absorption in SF: 114 K Vacancy Rate: 4.3% 12 Month Rent Growth: 4.9%
Leasing activity has moderated over the past several quarters. Many larger space users have become more cautious amid concerns and are reportedly trying to renew instead of actively seeking new space.12 Month Deliveries in SF: 2.9 M 12 Month Net Absorption in SF: (854 K0 Vacancy Rate: 4.4% 12 Month Rent Growth: 8.7%
San Diego's office market is supported by a mix of defense contractors, healthcare providers, life sciences firms, and tech companies. Several top universities, including UC San Diego, the University of San Diego, and San Diego State University, provide a talent pool of job-seeking graduates and collaborative work with firms and research institutes.12 Month Deliveries in SF: 270 K 12 Month Net Absorption in SF: (997 K) Vacancy Rate: 11.3% 12 Month Rent Growth: 1.6%
DURING THE FIRST HALF OF 2017, RAYS OF LIGHT CONTINUED BREAKING THROUGH THE CLOUDS CAST BY A NEARLY THREE-YEAR LONG RECESSION. THOUGH THE ALBERTA ECONOMY GENERALLY CONTINUED MOVING AT A SLOWED PACE, A FEW KEY SECTORS EXPANDED AND SEVERAL LARGE FINANCIAL INSTITUTIONS MAINTAINED THEIR FORECASTS OF AN OVERALL RECOVERY THIS YEAR.
CALGARY’S SUBURBAN MARKETS EXPERIENCED AN INTERESTING SECOND QUARTER AS SEVERAL NEW OFFICE DEVELOPMENTS WERE DELIVERED.
VACANCY IN CALGARY’S DOWNTOWN REMAINED RELATIVELY STEADY AT MID-YEAR 2017, RISING BY 0.4% TO 24.6%.
Vacancy dropped to 3% following four consecutive quarters in the mid-3% range. This marks a return to Q1 2016 levels.
Investors continued to demonstrate confidence in the Calgary market through the first quarter of 2017.
Chicago’s suburban office market suffered its fair share of hits over the past few years but seems to be on an upward trend.
As 2017 closed out, Chicago’s downtown employment base was growing and the economy was largely still in expansion mode from the last serious contraction in 2010.
Lack of product for sale continues in Q4 2017. Market analysis showed that Sales Volume for industrial real estate in the Chicago market was down to $728 Million in the 4th quarter, the lowest Q4 volume since 2014.
The Upper Tollway Sub-Market has consistently been one of the main hubs of office real estate activity in Dallas. With relocations of large corporate campuses, such as Toyota, Fannie Mae, Liberty Mutual, and JP Morgan Chase, the area is becoming even more appealing as the influx of developers continue to attempt to capitalize on the enticing market. This recent construction has resulted in a surprisingly large vacancy rate for a market with such an “awe factor.”
This Richardson/East Plano Submarket covers the I-75 corridor from Walnut Street to Hedgcoxe Road and includes central Plano up to Sam Rayburn Tollway to the North until Alma Road when it drops down to Hedgecoxe Road and Coit Road to the West. The included statistics cover Class A and B office buildings that have more than 50,000 square feet and are either under construction or existing. With more large companies looking to relocate and consolidate to the Dallas suburbs, the Richardson/East Plano Sub-Market provides a valuable option with several large blocks of space still available.