Lol “outflow of companies out of downtown”

Try oil prices crashed companies went bankrupt, the ones that survived drastically reduced head counts.

Has the same effect. People lost their jobs. OKC would do well to try to get some more non-O&G white collar jobs downtown. That's all I am saying.

Also... Don't be surprised if the Oklahoman soon consolidates to the 1st floor in the Century Center, leaving the entire 2nd floor empty.

Part of it is already listed on Loopnet.

Paycom building their HQ way out on Memorial and Council really sucks. There's almost 0% chance they move from there. Having a big non oil and gas company downtown would have been really nice.

They are now trying to lease floors 5-30 in this building.

In other words, SandRidge only now occupies the first 4 floors of a total of 30.


Suddenly, we have a lot of Class A (or soon to be) office space available downtown:

- Almost all of SandRidge Tower
- 50% of BancFirst Tower
- 60% of BOK Park Plaza
- Several completely empty floors in Devon Tower (although not out for sublease)
- The Enable Midstream hole that will be left in Leadership Square when they move to BOK Park Plaza
- The hole left by BOK in the old Fidelity Tower
- Several floors of the Parkside Building (Echo only taking 2 floors)

Just outside of downtown:
- Monarch Building (will Ackerman still take the top 3 floors?)
- Broadway Park; still 100% available
- Miller & Johnson has 2 of 3 floors available
- 2000 Classen: 42,000 SF empty after American Fidelity bought the old OPUBCO property


Then, you have the 20-story Dowell Center still sitting there 100% vacant in the heart of the CBD.

It's strange to me that he, at least seemingly, hasn't considered converting it to residential when we have almost 0 high-rise residential in the CBD and a glut of office space.

Part of it is already listed on Loopnet.

That's space that has never been occupied.

Has the same effect. People lost their jobs. OKC would do well to try to get some more non-O&G white collar jobs downtown. That's all I am saying.

You do understand how difficult it is right? Like heartland was a massive win that took years in the making.

The oil and gas industry fundamentally changed. Like it’s a 100% reversal.

Pre-2014 oil is rare. Find it. Produce it. As much as possible. We don’t even care if you’re making that much money cause it’s rare and since it’s rare value will climb. Eventually.

Post-2014. It’s not rare. It’s not THAT difficult to get. Go from an explorer and a whatever it takes mindset and become manufacturers. Watch your cash, debt, oil prices, etc etc.

That means leaner, less engineer dominated more financial business savvy minded. Might want to consolidate to have a larger share of the market to control the market to provide stability.

Devon, CHK, etc will never have those high of head counts again.

Diversification of industry is possible but takes decades. Paycom as an example. Paycom started 20 years ago. 20! It’s like turning a cruise ship. These things take a lot of time.

Fortunately our startup culture is getting better, the city is growing, entertainment options get better every day, etc. The seeds being planted today some will be big trees in 20 years.

That's space that has never been occupied.

Wondered about that.

Wasn't there an announcement of major contractor consolidating it's okc office moving downtown bringing additional jobs? Booz Allen.

All we need now are a few more like this and then the Robert Halfs downstream businesses of the world to get a presence and downtown office space becomes full in a jiffy. We should also pursue offices from the big 4 (PwC, KPMG, Deloitte, and Earnst & Young).

BTW, OKC already has a Boeing Headquarters, Global Services & Support Aircraft Modernization and Sustainment (AM&S) division. If the city wanted to, they could encourage that head-office to locate downtown but right now they're collocated at the Engineering center. Not really necessary for the admin and execs to be near Tinker.

Wasn't there an announcement of major contractor consolidating it's okc office moving downtown bringing additional jobs? Booz Allen.

All we need now are a few more like this and then the Robert Halfs downstream businesses of the world to get a presence and downtown office space becomes full in a jiffy. We should also pursue offices from the big 4 (PwC, KPMG, Deloitte, and Earnst & Young).

BTW, OKC already has a Boeing Headquarters, Global Services & Support Aircraft Modernization and Sustainment (AM&S) division. If the city wanted to, they could encourage that head-office to locate downtown but right now they're collocated at the Engineering center. Not really necessary for the admin and execs to be near Tinker.

We have all the Big 4 firms. And I know how big Tinker is I just think we need to market all the space we have downtown.

Wasn't there an announcement of major contractor consolidating it's okc office moving downtown bringing additional jobs? Booz Allen.

All we need now are a few more like this and then the Robert Halfs downstream businesses of the world to get a presence and downtown office space becomes full in a jiffy. We should also pursue offices from the big 4 (PwC, KPMG, Deloitte, and Earnst & Young).

BTW, OKC already has a Boeing Headquarters, Global Services & Support Aircraft Modernization and Sustainment (AM&S) division. If the city wanted to, they could encourage that head-office to locate downtown but right now they're collocated at the Engineering center. Not really necessary for the admin and execs to be near Tinker.

It’s actually the opposite.

Companies are finding if the execs and management are close to the manufacturing centers, operational efficiency gains are stronger.

Joe smith on the line says if we tweak it this way, it will save 5 mins a day. When the execs are next door the tweaks are implemented faster because decision makers can see/hear it quicker. Out of state, or far away, it gets lost in the daily shuffle of business.

There was a study about it, I’ll try to find it.

These things aren’t random, lots of times it’s very intentional.

For a the type of work Boeing and the others do here, you want your executives walking the plant frequently.

Which is my point. There will be millions of square feet of class A space in the heart of downtown, and almost no hope of filling it. OKC keeps getting blue-collar jobs, which are great. This is not a blue-collar space. Wish OKC could land some of those companies leaving SFO by the dozens and going to DFW or Austin.

And those companies would hire who exactly?

I don't think we are that far off. I can see a large aerospace firm or defense contractor from out of state or even the US, wanting a downtown presence. The more aerospace manufacturing presence we have in the city, the more we are likely to attract those white collar admin jobs that take up Class A office space. Boeing has over 500,000 square feet of class A office space, that was built within the last 8 years, but its just not downtown. They could of easily built a tower downtown...but they wanted to be close to Tinker for synergy.

https://oklahoman.com/article/5604691/aerospace-company-plans-to-bring-operations-job-to-okc-area

Valkyrie is finalizing negotiations on a temporary lease agreement to begin operations, as well as an agreement to construct a new, approximately 1 million square-foot campus for permanent use, Tafoya said.

And those companies would hire who exactly?

Which goes back to my initial blame - 23rd and Lincoln. They proved that education was a low priority, and cut it drastically. Will take years of adding to undo those cuts, and help fix OK's reputation.

Which goes back to my initial blame - 23rd and Lincoln. They proved that education was a low priority, and cut it drastically. Will take years of adding to undo those cuts, and help fix OK's reputation.

But then the more educated the population is the more likely they are to vote them out

But then the more educated the population is the more likely they are to vote them out

Which would be good!

http://www.okctalk.com/images/pete/sandridge042320a.jpg

Beautiful picture. I can’t wait until the normalcy resumes and we these buildings filled up. I’d like to see just how lively this area would be under those conditions.

Sandridge selling their tower. Maybe, somewhat like Pete suggested, Heartland and Sandridge should do a swap...

https://twitter.com/StormeJones/status/1262490212657172480

I've been following this for a while.

Believe it or not, I'm about 98% sure it's the state of Oklahoma which will be consolidating a bunch of agencies from buildings that are currently leased.

weird

$35M is a steal for anyone and too good a deal for the state to pass up, which is one of the few entities around with that kind of money.

Every floor of that building was completely redone by SandRidge and is at the very top of Class A office space. I've toured it, and it's gorgeous.

The deal would also include all furnishings (expensive and equally gorgeous), the workout and auditorium facility just to the east, and that big parking garage to the east of that.

Keep in mind, the city is paying $40 million to build just the new parking garage next to the Omni.



Would actually be done through the Commission of Land, which invests in real estate for the betterment of the statewide education budget.

And of course, it would involve moving in lots more employees to the CBD, rather than just shifting them from one building to another which has about all that's been happening downtown for quite a while.

Like the sound of more EEs in the CBD

BTW, all the news reports are just saying they are listing their building; as in they are putting it up for sale.

So "selling" in this context doesn't mean it's sold.

But I think it already under contract or really close with the state.

Also, these properties have been for sale for some time.

What prompted this series of news reports is that a broker put out a press release about it being formally placed on the open market.

Also, these properties have been for sale for some time.

What prompted this series of news reports is that a broker put out a press release about it being formally placed on the open market.

Sandridge stated in their earnings release this afternoon that an agreement to sell the building for $35.5 million was signed on May 15th and the sale is expected to close third quarter. Are you saying that they've actually only listed it and anticipate it will be sold by the third quarter?

Sandridge stated in their earnings release this afternoon that an agreement to sell the building for $35.5 million was signed on May 15th and the sale is expected to close third quarter. Are you saying that they've actually only listed it and anticipate it will be sold by the third quarter?

Could be one of those things where the govt can’t buy it unless it’s actually on the market. So they “list” it and wow look at that we got a buyer at exactly the price we wanted.

Could be one of those things where the govt can’t buy it unless it’s actually on the market. So they “list” it and wow look at that we got a buyer at exactly the price we wanted.

Will the government be able to maintain it?

The Oklahoma Health Care Authority was very close to moving downtown back in 2011—where OCU Law is currently. But state employees threw a huge fit that there wasn’t enough parking and that they’d have to walk a block to get to work. They ultimately went with the site they are now. That was when downtown was “up and coming,” so attitudes likely have changed.

I suspect that Oklahoma State Department of Health and maybe the Department of Mental Health and Substance Abuse Services could be moved here. They are both in really awful buildings that are falling apart. If OSDH moved here, the state could sell their current building to OU for expansion of OUHSC. That’s pure speculation on my part, though. There are also many reasons it may not be them, such as certain security requirements for ODMHSAS. The Military Dept. and Dept. of Veterans Affairs also could use new offices.

Would love to see TFCU buy it and move HQ there.

Will the government be able to maintain it?

Great question. History shows the government does not maintain their buildings. Look at OSDH and ODMHSAS, as I referenced above. Heck, look at the State Capitol. It took an act of God and someone nearly dying from falling debris before they spent a ton of money to finally fix it.

Given that history, you could probably expect the landscaping to be the first thing to suffer if it’s sold to the state. The rest will just gradually decay until it requires massive investment to fix.

Of course the govt won’t maintain it.

Their best option would be to buy it, sign a 50 lease, and flip it to a REIT for well over double what they paid for it.

Sources have told The Oklahoman the tower purchase is tied to House Bill 2840, which calls for the Department of Environmental Quality to sell its building at 707 N Robinson Ave. and for the agency to move into an unspecified property along with Oklahoma Tourism and Recreation Department, the Oklahoma Tax Commission, the Oklahoma Water Resources Board, the Oklahoma Department of Labor and the Department of Mines.--Oklahoman, Steve Lackmeyer: Monday, May 18, 2020

https://cdn2.newsok.biz/cache/large960_blur-b9cc094b2e57e95d4ad3eb785595a5b7.jpg

https://cdn2.newsok.biz/cache/r620-90f131c0f352af1e7043af515675dbc2.jpg
Maybe the new owner tenant will be able to afford to light this building up at night; especially with the state's tourism and recreation department as one of the occupants. State owned skyscraper http://www.okctalk.com/images/smilies/cool.png

'Unknown Sources...' :biggrin: Now we know the 'unknown source.' Thanks Pete for you pointing this out.

This sale will fill up some vacant office space in downtown with room for agencies to grow.

https://media.tegna-media.com/assets/KFSM/images/12579d96-80be-4f7e-b261-e2b98759c11e/12579d96-80be-4f7e-b261-e2b98759c11e_1920x1080.jpeg

It's probably uncharacteristic of the State of Oklahoma agencies; however, do you think there might be chance that a logo will appear at the top of this tower--I'll settle for them to just light this structure up at nights.

The Oklahoma Health Care Authority was very close to moving downtown back in 2011—where OCU Law is currently. But state employees threw a huge fit that there wasn’t enough parking and that they’d have to walk a block to get to work. They ultimately went with the site they are now.

This is comical. As a current law student I can testify to that. Even with a parking pass I end up parking on the street.

I could be wrong but doesn't the state own the Robinson Renaissance building? It is currently in the middle of a lobby renovation that is making it looks much updated. I assume they will probably have a company that will handle the management and upkeep like the do (or did if they sold it recently).

This will keep the building looking good and maintained.

Sources have told The Oklahoman the tower purchase is tied to House Bill 2840, which calls for the Department of Environmental Quality to sell its building at 707 N Robinson Ave. and for the agency to move into an unspecified property along with Oklahoma Tourism and Recreation Department, the Oklahoma Tax Commission, the Oklahoma Water Resources Board, the Oklahoma Department of Labor and the Department of Mines.--Oklahoman, Steve Lackmeyer: Monday, May 18, 2020

https://cdn2.newsok.biz/cache/large960_blur-b9cc094b2e57e95d4ad3eb785595a5b7.jpg

https://cdn2.newsok.biz/cache/r620-90f131c0f352af1e7043af515675dbc2.jpg
Maybe the new owner tenant will be able to afford to light this building up at night; especially with the state's tourism and recreation department as one of the occupants. State owned skyscraper http://www.okctalk.com/images/smilies/cool.png

It’s contingent on how much the state will fetch from the DEQ headquarters. There have been numerous interested parties the last couple/few years. An appraisal was (very) recently commissioned.

With that amount of consolidation downtown, how many more employees does that put downtown compared to the current workforce down there?

Would love to see TFCU buy it and move HQ there.

You and me both. Unfortunately, I don’t think that will ever happen. They’ve put a bunch of money into their buildings at I-40 and Meridian over the last couple of years.

I could be wrong but doesn't the state own the Robinson Renaissance building? It is currently in the middle of a lobby renovation that is making it looks much updated. I assume they will probably have a company that will handle the management and upkeep like the do (or did if they sold it recently).

This will keep the building looking good and maintained.

Yes, it's the Commission of Land Office which operates very differently than other state agencies.

The entire purpose is to invest funds -- their own, generated by owned and sold property -- to create revenue for the state education fund.

The also own that huge tract near 50th & Lincoln where they have been trying to kick off a big mixed-use development.

The Tax Commission has around 500 employees in OKC. The legal group has been in downtown for years. It also has a legal group in Tulsa. The main building at the capitol complex has had serious mechanical issues for years. This would be a great move for them.

The Tax Commission has around 500 employees in OKC. The legal group has been in downtown for years. It also has a legal group in Tulsa. The main building at the capitol complex has had serious mechanical issues for years. This would be a great move for them.

The Tax Commission is not involved. I'll have a full list of what agencies are moving from where later today.

The Tax Commission is not involved. I'll have a full list of what agencies are moving from where later today.

Thanks - guess the Oklahoman was incorrect.

It’s contingent on how much the state will fetch from the DEQ headquarters. There have been numerous interested parties the last couple/few years. An appraisal was (very) recently commissioned.

According to the DOK, a private investor will be buying the building and leasing it to the state agencies. This is probably good news to those worried about how well the property will be kept up.

^^A private investor that really does care about landscaping and maintenance. I think this deal will be a very good thing for the property and for Kerr Park! This also means we don't have to worry about DEQ wanting to build a massive parking structure fronting the streetcar line.

I'm sure the new buyers will want to do that tho

My understanding is the following state agencies will be taking space in SandRidge Tower (what will be the new name I wonder?):

DEQ: ~400
Dept. of Health: ~400
Water Resources ~100
Bureau of Mines ~20

That's approximately 1,000 new downtown workers.

The OTC has about 450 employees in OKC and unless the list above changes, there is likely not enough room for them, although they may be moving elsewhere.


As I previously posted, the building would be sold with all existing furniture, which is beautiful.

http://www.okctalk.com/images/pete/sandridge042320a.jpg


http://www.okctalk.com/images/pete/sandrige050120p.jpg


http://www.okctalk.com/images/pete/sandrige050120q.jpg


http://www.okctalk.com/images/pete/sandrige050120r.jpg


http://www.okctalk.com/images/pete/sandrige050120u.jpg


http://www.okctalk.com/images/pete/sandrige050120o.jpg


http://www.okctalk.com/images/pete/sandrige050120n.jpg


http://www.okctalk.com/images/pete/sandrige050120j.jpg


http://www.okctalk.com/images/pete/sandrige050120k.jpg

SandRidge tower is one of the towers that normally has crosses in the windows for the holidays, right? I wonder if the state will continue that practice.

Confused at this point.

Is the State of Oklahoma purchasing this building and Sandridge Energy will lease their current space from the agency and an additional 1,000 employees will occupy the tower...

As for parking, the tower has 1,187 covered parking spaces underground--over 90% of the parking spaces in this tower will be occupied.

Confused at this point.

Is the State of Oklahoma purchasing this building and Sandridge Energy will lease their current space from the agency and an additional 1,000 employees will occupy the tower...

As for parking, the tower has 1,187 covered parking spaces underground--over 90% of the parking spaces in this tower will be occupied.
Where did you get the number for parking spaces underground? I think you might be including the parking garage across the street in that number.

Yes, there are 931 spaces at the Broadway Kerr garage then about 250 more under the tower and in the auditorium/workout facility to the east.

Update with some good info:

https://oklahoman.com/article/5662714/decision-expected-soon-on-whether-sandridge-tower-will-become-state-office-building


I'd be very surprised if the CLO (state) doesn't end up buying the property.

How will all of those agencies fit?

How will all of those agencies fit?

I don't think they will.

I believe there is a good chance the OTC will go elsewhere.

I'd like to see Costco put their operation center there if there were the room. I'm really hoping they locate downtown. 1000 state, 1000 Costco, and the 1000 Global Payments employees would be a boom for downtown.

Lease and parking costs are too expensive in the CBD for an operations center.

News 9 just said SandRidge is cutting down to 26 employees downtown and 100 in the field.

News 9 just said SandRidge is cutting down to 26 employees downtown and 100 in the field.

So unfortunate, reminds me of the movie The Incredible Shrinking Man.

When Devon mentioned in 2010 about needing more space, many of us thought Kerr-McGee Tower would be their destination. Now, it looks as though the Class A office space downtown is being absorbed over time. Maybe the OTC could look at BOK Park Plaza Tower or the old Fidelity Bank Tower...

My understanding is the following state agencies will be taking space in SandRidge Tower (what will be the new name I wonder?):

DEQ: ~400
Dept. of Health: ~400
Water Resources ~100
Bureau of Mines ~20

That's approximately 1,000 new downtown workers.

The OTC has about 450 employees in OKC and unless the list above changes, there is likely not enough room for them, although they may be moving elsewhere.


As I previously posted, the building would be sold with all existing furniture, which is beautiful.

http://www.okctalk.com/images/pete/sandridge042320a.jpg


http://www.okctalk.com/images/pete/sandrige050120p.jpg


http://www.okctalk.com/images/pete/sandrige050120q.jpg


http://www.okctalk.com/images/pete/sandrige050120r.jpg


http://www.okctalk.com/images/pete/sandrige050120u.jpg


http://www.okctalk.com/images/pete/sandrige050120o.jpg


http://www.okctalk.com/images/pete/sandrige050120n.jpg


http://www.okctalk.com/images/pete/sandrige050120j.jpg


http://www.okctalk.com/images/pete/sandrige050120k.jpg

Pete, I’m not up to speed on where those employees are now but thought DEQ had a spot downtown already and would just be moving buildings? If so its not a net gain.

Do you know where all these employees work now? Are they scattered in many buildings or just one for each branch? And if downtown gains them it means someone is losing them. Which city areas will be hurt by this? Or are all over at capitol area?

Trying to get a sense of where they move from and how many from each area. Those micro economies will possibly be hurt if say 400 move from an area where they are biggest employee base.

Thanks

Pete, I’m not up to speed on where those employees are now but thought DEQ had a spot downtown already and would just be moving buildings? If so its not a net gain.

Do you know where all these employees work now? Are they scattered in many buildings or just one for each branch? And if downtown gains them it means someone is losing them. Which city areas will be hurt by this? Or are all over at capitol area?

Trying to get a sense of where they move from and how many from each area. Those micro economies will possibly be hurt if say 400 move from an area where they are biggest employee base.

Thanks

The DEQ office is at 6th and Robinson. And it’s closer to 500 employees than 400.