NBA team searching for downtown office

[metro]

City's new NBA team searching for office
Daily Oklahoman
By Steve Lackmeyer
Business Writer

Leasing agents for some of downtown Oklahoma City's premium office towers are competing to become the temporary home base of the city's new NBA team.
Clay Bennett, who leads the ownership team that bought the former Seattle SuperSonics, listed the search for new office space as one of the first tasks they face in moving to Oklahoma City this summer.

City covering the costs
As part of an agreement to play at Ford Center, the city committed to paying for temporary downtown office space for team employees until permanent space is added at the arena.
"The addition of 120-plus employees to the current downtown work force of over 52,000 adds to the 24/7 vibrant environment we're working to create,” said Brett Hamm, president of Downtown Oklahoma City Inc.

"The fact that these are NBA employees serves as an impressive recognition of the investment the public and private sectors have made towards downtown's success,” Hamm said.

Mark Beffort, principal of Grubb & Ellis-Levy Beffort, represents Leadership Square and Corporate Tower. Those two towers, along with Oklahoma Tower, are considered top contenders as downtown's premium Class A office properties. He said even just a two-year lease with the team would be considered a huge win because of the nature of the tenant.

"People like to be around exciting new things,” Beffort said. "To be around basketball players, it really is a neat deal.”


Less space available
Space is available, Beffort said, though not as much exists as did when the Hornets were looking for a similar deal in 2005.
He noted the latest office space report shows vacancy down from 30 percent a few years ago to 27 percent now. The Class A space vacancy is just under 15 percent.

Leadership Square is 84 percent occupied and has two floors that could fit a tenant needing a full floor of space totaling 20,000 to 25,000 square feet.

At Oklahoma Tower, three floors are available.

Craig Tucker, a leasing agent for Price Edwards representing Oklahoma Tower, said the former home of the Hornets is 87 percent occupied.

But as testament to changing times, the Hornets' former office space is now leased to Simons Petroleum.

Tucker said the ground floor Hornets store, however, is still vacant and the tower still has a couple floors left large enough to accommodate space needed for the team's operations.

Hamm said the diminishing availability of Class A space may help revive the fortunes of older downtown properties.

"As Class A space becomes increasingly limited, in order to capitalize on downtown's momentum, we continue to see strong interest among investors and developers in renovating Class B and C space,” Hamm said. "And that continually opens up new opportunities for business growth and relocation.”

[Toadrax]

There are other buildings besides OK Tower and Leadership... First National Center has space...

[Saberman]

There are other buildings besides OK Tower and Leadership... First National Center has space...

If I remember right FNC still has some major renovations to do before its ready for large tenant.

[OKCMallen]

There are other buildings besides OK Tower and Leadership... First National Center has space...

Yeah, FNC isn't ready for this. Chase Tower, Leadership, Oklahoma, BOK building, old Kerr McGee building, Devon buildings are the buildings which would suit this type of officing, but I don't even know the availability of most of those, and the old KM building is being renovated for SandRidge right now.

[Comm'l Real Estate Guy]

Yeah, FNC isn't ready for this. Chase Tower, Leadership, Oklahoma, BOK building, old Kerr McGee building, Devon buildings are the buildings which would suit this type of officing, but I don't even know the availability of most of those, and the old KM building is being renovated for SandRidge right now.

Chase Tower- No. Doesn't have the space.
Leadership- Yes.
OK Tower- Yes. Most likely destination.
BOK- No. Floor plates are too small, and doesn't have the space.
Sandridge Tower. Maybe. This one has legs since Tom owns it. Might be a conflict of interest since the city is paying rent for the temporary space.
Devon- No. No space whatsoever.

First Nat'l Center doesn't have a chance. It needs so much work, and Clay B. knows it. I will be very surprised if FNC even has a remote chance.

The only other building is 101 Park Avenue (BC Clark's HQ). It has the space available.

[metro]

It would be nice if FNC was ready for this. The NBA team would help fill it up fast.

[jbrown84]

It would be nice if FNC was ready for this. The NBA team would help fill it up fast.

120 temporary employees... not really.

[metro]

120 temporary employees... not really.

jbrown, I think you missed my point. My point was not that the team employees enough to keep FNC even remotely busy, but the "appeal" of being officed in the same building as the team. I believe Lackmeyer did an article on this. Ah yes he did, it's posted above, here is a quote:

"People like to be around exciting new things,” Beffort said. "To be around basketball players, it really is a neat deal.”

[OKCMallen]

I don't know that FNC would ever be ready for something liek this with the way the offices are all segregated oddly per floor.

[Toadrax]

Kind of a shame, the FNC is in the middle of renovations, but it is so underutilized. I think they even have an oc-12 in there that no one is even using...

[HOT ROD]

that would be a coup if FNC could attract the team, even if temporarily. That investment alone could attract more tenants who want to be close, as metro/steve l put it, which would then lead to a growing economy for FNC - then next thing you know, the whole building is remodeled and occupied.

I think they need to take that first step and I wouldn't be surprised at all if Clay gave them the chance. FNC is arguably OKC's most prominent 'homegrown' skyscraper - it is fully connected to the community, so why not locate the new basketball team there - while at the same time, help out a grand downtown dame?

The could still have the team store at Oklahoma Tower, but I'd hate to see the executive offices take a floor of OK Tower when there is opportunity for a TRUE community connection to be made at FNC. Just upgrading the floor for the team and then them being there will no doubt cause other businesses to also locate there and people will visit the building, which will cause more interest and renovation, and so on.

Besides, OK Tower doesn't have any problems at all in attracting tenants - it is the top Class A skyscraper over 30 storeys in downtown.