Quote Originally Posted by JOHNINSOKC View Post
You are definitely correct when you say that the city shouldn't rest and assume that we've reached our goals or potential. I think the sky is the limit for downtown OKC and the metro as a whole. The vacancy rate is somewhat skewed by so much of the Class C space being vacant. The last report I remember seeing, and this is about a year or so ago, the Class A rate downtown was 14.9% vacant. That's not too bad. I would venture to guess that it's around 13% currently. If Devon decides to build a huge tower downtown, it will take roughly two years for construction and I would expect that our occupancy levels would be vastly improved by then. Between company moves from the suburbs to downtown, and possible new corporations coming to OKC, I think a Devon Tower would not be a negative factor in the office market. Thoughts??
I honestly don't know whether a Devon tower would be a negative factor in the office market. I do think Larry Nichols is showing very good judgment to be concerned about it...it demonstrates that he is a thoughtful advocate for the city and is not going to rush into doing something just because he can afford it.
You are optimistic, and optimism is good. But what company moves from the suburbs have you seen beyond Sandridge and maybe a scattered small firm here or there? I don't think there has been a fundamental attitude shift in this regard. Dirt is flying on Memorial Road faster than ever. Also: what new corporations are on the horizon? Again, I don't want to be the downer, maybe you know some things I don't. But beyond MG, and even that seems questionable, I haven't heard of lots of new companies coming in and clamoring for Downtown office space.
It would seem the key is to convert as much of the Class C space as possible to residential, boutique hotel, or other uses, such as back office. Move the firms still in those spaces to Class A or Class B. Then maybe the overall vacancy rate will come down. Also: so much of that Class C space is in the First National Center. I'll be anxious to see what happens there.