Looks like we're finally headed in the right direction.

Hope the trend continues and that we see some high-quality new construction sometime soon.




City's office occupancy improves

By Richard Mize
The Oklahoman

Devon Energy is spilling from Mid-America Tower, Chase Tower and First National Center, the Hornets are buzzing Oklahoma Tower and Park Harvey Center is going to housing, vastly improving office occupancy.

Oklahoma City's office market absorbed more than 200,000 square feet the last half of last year partly because of the reduction in supply by conversions to housing, according to a recent office market report by Wiggin Properties LLC.

Downtown enjoyed 40 percent of the absorption, or 98,000 square feet, which lowered the vacancy rate in Class A and Class B buildings to 20.5 percent, Wiggin Properties said.

The conversion of Park Harvey Center in particular is causing tenants to relocate to other empty space downtown, the report said.

The Hornets' 22,000 square feet in Oklahoma Tower and Devon Energy's continued expansion -- to continue this summer when the energy giant expands onto five floors of Corporate Tower -- shined the occupancy numbers, Wiggin Properties said.

The company said conversion of Founders Tower, in the northwest suburban submarket, has tenants there relocating and filling other space, contributing to the lowest suburban vacancy rate since summer 1999 -- 12.5 percent.

Rents haven't changed, however, although Wiggin Properties said it expects to see increases this year because of the improved occupancy and reduction in supply.

Asking rent rates for Class A space downtown range from $15 to $16 per square foot per year, and asking rates for Class B space downtown range from $12.50 to $16, the report said.

Suburban asking rent rates for Class A space range from $16.50 to $22.50 per square foot and from $11 to $16 per square foot for Class B space.

Oklahoma City's office market is in good shape, Wiggin Properties said.

"Compared with many cities, Oklahoma City's office market looks very strong. Our expectation is for continuing improvement in occupancy levels and significant increases in rent rates during the next year or two," the company said in the report. "As suburban vacancy rates continue to decline and the number of suburban space options dwindle, rents will move upward, pushing downtown rates up as well, and making downtown space options more attractive.

"Meanwhile, the remarkable growth in downtown hotel rooms, sports and entertainment offerings and residential options makes the office environment an increasingly attractive alternative to the suburbs."