We have a thread about CHK business practices:

https://www.okctalk.com/showthread.php?t=26031



This one is for real estate issues, which is why it's in the Development forum.

As I've mentioned, Chesapeake is in the process of consolidating its remaining ~800 employees to the buildings on the west side of Classen.

Workers are currently spread throughout the campus except for Building 13 which has been vacant for a while as it has been marketed for lease for over a year now. The rooftop restaurant atop Building 14 has been closed for months.

CHK will have to keep access to at least one of the big parking garages east of Classen. The remainder is being placed on the market (including the ample vacant land) except the lab (RTC) and the Child Care Center.


HTTP://www.okctalk.com/images/pete/chesapeake071920x.jpg

Here is a closer look at Building 14 with the former Skyline Restaurant.

I know the State took a hard look at this structure (even after they had acquired SandRidge Tower) but I believe they passed.

The last three photos are from Rand Elliott.

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This is Building 15:

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Couple more photos of the eastern part of the campus which they are putting on the market:

HTTP://www.okctalk.com/images/pete/chesapeake071620a.jpg


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Its a beautiful campus. I hope it will continue to look great under new ownership.

As I've mentioned, Chesapeake is in the process of consolidating its remaining ~800 employees to the buildings on the west side of Classen.

Workers are currently spread throughout the campus except for Building 13 which has been vacant for a while as it has been marketed for lease for over a year now. The rooftop restaurant atop Building 14 has been closed for months.

CHK will have to keep access to at least one of the big parking garages east of Classen. The remainder is being placed on the market (including the ample vacant land) except the lab (RTC) and the Child Care Center.


HTTP://www.okctalk.com/images/pete/chesapeake071920x.jpg
Isn’t that all residential? Where is the office space going to be? That one building in the middle??

Isn’t that all residential? Where is the office space going to be? That one building in the middle??

None of this is residential -- all office.

None of this is residential -- all office.
Hmmm. I was sure Chesapeake had living options for their employees and this was it. Weird.

Hmmm. I was sure Chesapeake had living options for their employees and this was it. Weird.

They talked about it but it never came to fruition.

Even just the west side of Classen feels like way more space than could possibly be needed for 800 employees. I suppose they must have had plenty of room for social distancing being spread out over the entire campus up until now.

Heard from a friend that all of Diamondback Energy’s OKC staff is moving from their offices in the Central Park buildings on Lincoln to the CHK campus.

It’s probably just speculation at this point but he believes it’s the first step toward them relocating their HQ to OKC from Midland. Would be a great get for OKC if that ends up coming to fruition.

Heard from a friend that all of Diamondback Energy’s OKC staff is moving from their offices in the Central Park buildings on Lincoln to the CHK campus.

It’s probably just speculation at this point but he believes it’s the first step toward them relocating their HQ to OKC from Midland. Would be a great get for OKC if that ends up coming to fruition.

They were LIVID about the Midland City Council refusing to invest in Hogan Park. Was 1/2 funded by private donations. CEO wrote them a scathing letter. https://www.mrt.com/opinion/article/diamondback-ceo-travis-stice-midland-needs-invest-17744608.php

I mean he straight up threatened it.

"My patience is tested by the number of employees who have told me working for Diamondback was the best job they ever had, but they are moving because another destination offers them more than what they are receiving in Midland. The narrative I deal with from my employees is becoming increasingly difficult to overcome:"

They were LIVID about the Midland City Council refusing to invest in Hogan Park. Was 1/2 funded by private donations. CEO wrote them a scathing letter. https://www.mrt.com/opinion/article/diamondback-ceo-travis-stice-midland-needs-invest-17744608.php

I saw that the other day. Pretty dumb on Midland’s part.

I saw that the other day. Pretty dumb on Midland’s part.

Shoot me a dm

Heard from a friend that all of Diamondback Energy’s OKC staff is moving from their offices in the Central Park buildings on Lincoln to the CHK campus.

It’s probably just speculation at this point but he believes it’s the first step toward them relocating their HQ to OKC from Midland. Would be a great get for OKC if that ends up coming to fruition.

Can confirm I have also heard they are moving all okc employees to the glass building at corner of 63rd and Classen. I believe this was CHK marketing in the past days before it emptied out.

Shoot me a dm

yeah my inbox is apparently full. I’ll empty it out.

Just learned from an employee that they have been notified that all the OKC employees of the combined organization will be consolidated into Building 15. Previously they had been consolidated in the 'brick campus' as outlined below but now that will go completely dark.

Was told there is about 800 offices in there.

Will leave just a ton of excess buildings and land. Not sure of the plans for it all.

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That seems insane. I wouldn’t think that many would be in that building.

That seems insane. I wouldn’t think that many would be in that building.

It's their largest building. 800 offices minus 600-700 employees means plenty of room, even with a little growth.

Believe that are going to add a food place for employees.

The two things they could shed is the gym and the child care facility. Both could be run by another party who lease the space and then offer it to employees.

Here's the loopnet link for anyone interested: https://www.loopnet.com/Listing/6000-N-Classen-Blvd-Oklahoma-City-OK/25422920/

Here's the loopnet link for anyone interested: https://www.loopnet.com/Listing/6000-N-Classen-Blvd-Oklahoma-City-OK/25422920/

It's been on the market for years with no takers.

I know the State looked at it early on but once they passed, nothing.

I would assume it would come with access to the parking garage to the north?

I would assume it would come with access to the parking garage to the north?

I'm sure the new org will have to completely rethink all of this. Maybe sell everything but 15 and a garage or two.

Diamondback Energy leases #13

Diamondback Energy leases #13

Still could be sold, of course.

Diamondback Energy leases #13

Most of it. But there is still space available in the basement and the 1st floor. They have floors 2-4.

I'm sure they are not picky on what they can sale. The former empire can easily find easily find space somewhere. They just want to dump all those assets and formally put an end to the Audrey Mcclendon era.

All those brick buildings would probably make good apartments.

I am sure it is way easier to try and keep the entire campus as a package deal, but those older buildings look prime for a large apartment-style complex + cool amenities. Sell them as units and slap on some HOA dues.

I remember hearing somewhere that all of the brick buildings were designed in a way to make conversion to housing as easy as possible. Specifically, that the buildings contain plumbing where theoretical kitchens and bathrooms would go.

I worked in Bldg 15 for many years in about 6 different offices. I can't imagine it would fit that many. But, maybe so.

I remember hearing somewhere that all of the brick buildings were designed in a way to make conversion to housing as easy as possible. Specifically, that the buildings contain plumbing where theoretical kitchens and bathrooms would go.Could be. But if not with the normal space between each ceiling and the floor above it wouldn't be a huge deal. Making HVAC zone for each unit would be more difficult but can be done.

Well it's not good news to hear a business needing to shed weight of this scale. But it is good news to hear that the properties can be converted to housing.

Keep it affordable and watch that complex brim with life.

Seems like a good fit for OSU-OKC since it would tie into the architecture of the Stillwater campus.

I worked in Bldg 15 for many years in about 6 different offices. I can't imagine it would fit that many. But, maybe so.

The interior floor plan is to be completely reworked.

And that building is 6 floors and over 250,000 SF. It could easily accommodate 800 people.

The interior floor plan is to be completely reworked.

And that building is 6 floors and over 250,000 SF. It could easily accommodate 800 people.

You'd know better than me, but there are a ton of conference rooms, many quite large, and two auditoriums in there and the basement has no office space at all.

But if they're moving in there, they're moving in there. So it'll obviously hold them.

You'd know better than me, but there are a ton of conference rooms, many quite large, and two auditoriums in there and the basement has no office space at all.

But if they're moving in there, they're moving in there. So it'll obviously hold them.

Sounds like a lot of wasted space that can be converted to actual offices or cube farms.

The two things they could shed is the gym and the child care facility. Both could be run by another party who lease the space and then offer it to employees.

Childcare is open to the public and owned/run by bright horizons corp.

The interior floor plan is to be completely reworked.

And that building is 6 floors and over 250,000 SF. It could easily accommodate 800 people.

I would bet they will have a rotating hybrid work schedule as most companies due now.

We don't have enough room to house everyone in office at my company, so we have alternating hybrid shifts. I share an office with another coworker, and the days she works in the office, I work from home, and vice versa....it works.

I would bet they will have a rotating hybrid work schedule as most companies due now.

.

lots are moving to fully back in the office ... so i think this is unlikely

AND as I've stated at least five times, there will be enough room in that building for 800 and there will probably only be around 650 OKC employees at the most.

Could be. But if not with the normal space between each ceiling and the floor above it wouldn't be a huge deal. Making HVAC zone for each unit would be more difficult but can be done.
Depends on the system type. What kind of HVAC is there? Can’t make blanket statements as there are many system types. Plus, given the age of the buildings, system retrofits at time of retrofit would likely be normal anyway. Lots of systems can be used.

Plumbing and sewer can be tough.

AND as I've stated at least five times, there will be enough room in that building for 800 and there will probably only be around 650 OKC employees at the most.

If 650 total, would this mean OKC is net gaining or net losing in terms of total people working here?

If 650 total, would this mean OKC is net gaining or net losing in terms of total people working here?

Not much net change is expected by the time the dust settles.

Companies are really pushing AI and automation. It even has people in IT sweating a little bit.

Companies are really pushing AI and automation. It even has people in IT sweating a little bit.

As someone that runs and designs products for an industrial automation software company, this does not upset me.

But yeah, what's really amazing is that the oil and gas business used to have this much labor need. Even our large clients these days have very short payrolls. Automate / Contract / Outsource the modern E&P has a fraction of the permanent salaried staff of a major independent E&P from 10, 15 years ago, it really has been a truly transformed industry. Not bad for the industry as a whole, but definitely not great for the market of big time glitzy office real estate in okc.

As someone that runs and designs products for an industrial automation software company, this does not upset me.

But yeah, what's really amazing is that the oil and gas business used to have this much labor need. Even our large clients these days have very short payrolls. Automate / Contract / Outsource the modern E&P has a fraction of the permanent salaried staff of a major independent E&P from 10, 15 years ago, it really has been a truly transformed industry. Not bad for the industry as a whole, but definitely not great for the market of big time glitzy office real estate in okc.

I would imagine that type of efficiency enhancment is going to be a problem for the office market accross the board. Pretty nuts how much has changed in a relatively short period of time.

Service Oklahoma is leasing Building 4 and accompanying garage space.

I always thought it would be a natural fit for OSU-OKC. Street car expansion between the two after the stadium maps in the 2030s would add some connectivity too.

I always thought it would be a natural fit for OSU-OKC. Street car expansion between the two after the stadium maps in the 2030s would add some connectivity too.

That would be incredible, but I doubt they’re leaving their current digs. Especially with the new hospital coming.

I always thought it would be a natural fit for OSU-OKC. Street car expansion between the two after the stadium maps in the 2030s would add some connectivity too.

Are you suggesting move the entire campus from Portland or open an extension of the extension campus? The two things that come to mind that are unique to the Portland campus are the Police (driving course) and Fire (rescue tower) training facilities.

With the number of buildings, parking, and athletic field off of Western, a college or school could fit somewhere on that campus?

This would be an amazing mixed-use area. Some retail with residential above. It would be an expensive conversion, I'm sure. But the bones are there, and the buildings are fine!

Or medical campus.

Are you suggesting move the entire campus from Portland or open an extension of the extension campus? The two things that come to mind that are unique to the Portland campus are the Police (driving course) and Fire (rescue tower) training facilities.

With the number of buildings, parking, and athletic field off of Western, a college or school could fit somewhere on that campus?

I meant OCU, as an extension. It's monday

I meant OCU, as an extension. It's monday

I don't think OCU needs more space.

Is CHK selling these properties or leasing them for the time being?

My bet is that they end up selling off the old cottage buildings and convert that entire block into residential. There's no market for those little structures of office space, in that area, for that amount of it. There are other options nearby.

Wonder what the parking spot per sq ft ratio is though. It depends on how much is in each unit, if they do convert, on if they have to figure out how to add more parking in there.

The good news for this is that there is residential demand there. It would develop in phases as they go building by building, but it could work. Honestly, i don't see how you get anyone else in there to eat up all that space otherwise. Office space is not doing well across the US post COVID and the return to work push has been back-firing on those that have been forcing it. In a few years, the bottom is going to fall out on those leases that were signed just before COVID too. What is happening though, is people are starting to move back into the cities. Here's a prime location for that living. They dont have to be boring apartments. They can be condos or large apartments. Every apartment doesn't have to be a 2/3 bed boring block. Get creative with it! Make a 4 bed HOME out of it. Hell, give someone the entire floor and a 3k ft home out of it.

Has anyone on here actually seen or have a floor plan for any of the buildings they want to convert? Would all the non load bearing walls have to be demo’d and moved to get a suitable floor plan for high dollar residential sales? Is there an existing plumbing and sewer infrastructure? HVAC would have to be totally redone. Parking?

Everyone assumes residential conversion has a financial payback. It can be very costly, even more than ground up new. Office to residential isn’t easy or cheap. Looking at the outside of a building reveals nothing about the challenges.

Has anyone on here actually seen or have a floor plan for any of the buildings they want to convert? Would all the non load bearing walls have to be demo’d and moved to get a suitable floor plan for high dollar residential sales? Is there an existing plumbing and sewer infrastructure? HVAC would have to be totally redone. Parking?

Everyone assumes residential conversion has a financial payback. It can be very costly, even more than ground up new. Office to residential isn’t easy or cheap. Looking at the outside of a building reveals nothing about the challenges.

Looking at the property on the SE/C of 63rd and Western (arguably the most prominent) on county assessor, it is just over 60,000 square feet which doesn't include a 15,500 sf basement. I have been in the basement of that building and it is nice, but I would guess that would be more used for storage, utilities, etc. I don't think some people realize how big those buildings actually are. For comparison, the Harlow conversion downtown was purchased for $12.5 million (combined) and will undergo a $60-$70 million renovation. It is just over 200,000 sf.

The entire CHK campus bound by 63rd, Classen and Western is around 650,000 sf (includes gym, but excludes any parking structures). I would assume the process would be to purchase one building, renovate to get it leased out, then move on to the others. Either way, the people doing it would need deep pockets. From a locality standpoint, maybe Tannebaum, Humphreys or Burnett would make the most sense. I am sure there are more out there, but those are the ones I can think of off the top of my head.

Looking at the property on the SE/C of 63rd and Western (arguably the most prominent) on county assessor, it is just over 60,000 square feet which doesn't include a 15,500 sf basement. I have been in the basement of that building and it is nice, but I would guess that would be more used for storage, utilities, etc. I don't think some people realize how big those buildings actually are. For comparison, the Harlow conversion downtown was purchased for $12.5 million (combined) and will undergo a $60-$70 million renovation. It is just over 200,000 sf.

The entire CHK campus bound by 63rd, Classen and Western is around 650,000 sf (includes gym, but excludes any parking structures). I would assume the process would be to purchase one building, renovate to get it leased out, then move on to the others. Either way, the people doing it would need deep pockets. From a locality standpoint, maybe Tannebaum, Humphreys or Burnett would make the most sense. I am sure there are more out there, but those are the ones I can think of off the top of my head.

I think it would have to be sold to a developer at a very low price to have any chance of success. It likely would be cheaper and with fewer roadblocks to build from ground up. This isn't a slam dunk.