Devon ?

[metro]

The thing is, all the downtown vacancy is Class B and C, and that's why it's not filling up. The Class A space will fill much easier, especially if American Fidelity takes a large chunk of it.

I agree, however these are the words from Larry Nichols CEO of Devon, so take it for what it's worth. I imagine he still sees there is a need/demand for Class B,C office space for other uses, and would like to see it filled up a little more as well as the Class A, to create an urgent need for at least one new tower.

[OKCisOK4me]

I'm sure I could just look the info up on ask.com or something but this just seems easier. What is the difference between all this Class B & C office space that downtown OKC has to offer and a Class A office tower that Devon or American Fidelity would build/lease?

I'd like to see more concrete evidence on this and I hope to wish it into fruition!

[Patrick]

Comparing class A space to Class C space, is like comparing an outdated older home, to a newer, modern updated one. Age doesn't matter, as much as how updated the facility is.

As for specifics, I'm not sure.

[Pete]

The commercial real estate community generally determines where a building is A, B or C by general consensus. Class A is either new construction or remodeled space up to high standards. B&C is pretty much everything else. For example, First National Center is still considered Class B space -- that is until they do a major renovation.


Several of brokers publish occupancy/vacancy surveys by area of the city. Here's one from Levy Beffort that shows that Class A space is growing tight:

http://www.levybeffort.com/Websites/29/Files/OKCOffice%204q07.pdf

[Pete]

I'm beginning to wonder if Devon might have it's eye on the land just west of the Ford Center -- I think it's presently occupied by a car dealership.

On all the Core to Shore renderings, it shows that property as two towers with retail on the south end along what will be the new boulevard.

That's a fantastic piece of property because it has Myriad Gardens to the north, the new Central Park to the south, the improved Ford Center to the East and a lot of frontage on the boulevard.

It might make sense for the city to lure Devon to this site because they will need a big development to kick off Core to Shore and also the new boulevard (which if built now would border on empty lots and the backs of a few properties).

[jbrown84]

That makes sense Pete. I assume they'd need both towers, unless they end up taller than in the rendering.

[Pete]

I'd like to see the property closest to the Ford Center be a hotel even though I know they have one penciled in just across the boulevard as part of the convention center.

But that one hotel won't be enough and I'd hate to see a huge, private office building that butts up against the Ford Center and the Myriad Gardens. At the very least, the bottom section should have retail and other space that would draw in the general public. And a hotel at that location would provide guests (and those holding events) great views of the skyline and the two parks.

Then, they could just build a huge office tower to the west as part of the same complex

[Bob&Frank&Ted&Bob&Alice]

Why don't we just turn everything into Las Vegas?

[jbrown84]

go away

[Bob&Frank&Ted&Bob&Alice]

Another question someone doesn't want to answer?

[TStheThird]

It doesn't get answered because it is a stupid question that is not relevant in this discussion.

[okcpulse]

No one wants Class C space. Property owners need to pull their head out fo the sand. That's like trying to get high income young professionals to rent out one bedroom flats in a dodgy complex with 1970s fixtures and green shag carpeting.

[Pete]

Regarding the earlier discussion, Devon does indeed own their building, formerly known as Mid-America Tower -- now just 20 N. Broadway. They bought it from an investment firm in 1996 for $12.3 million.

So, they have to worry about being able to lease that out if they in fact build a new headquarters. It's great to have our corporate leaders TRULY invested in downtown.

[yukong]

Well, looks like it is a reality. $350 million dollar, 1,000,000 square foot tower. Largest and tallest in OKC.


Devon Energy Corp. is pursuing plans to build a new "iconic" downtown corporate headquarters — one that would be the tallest building in Oklahoma City.

In an exclusive interview with The Oklahoman, Devon Chief Executive Officer Larry Nichols also confirmed he resigned from the board of the Oklahoma City Urban Renewal Authority because the city agency owns the proposed tower site.

In response to interest expressed by Devon Energy, Urban Renewal is set to issue a request for development proposals at next week's meeting for the old Galleria parking deck just north of the Myriad Gardens.

"In talking with experts and engineers, we're looking at something in excess of $350 million," Nichols said. "We're talking about something that matches MAPS I."

With 1,350 employees based downtown, Nichols said the company needs to move forward with construction of a new headquarters that he hopes can be completed within four years. He expects 2,000 people will move into the new tower when it is completed.

"Devon has recognized for some time that we need to consolidate into one building," he said. "We now have employees in five different buildings. There are obviously inefficiencies in that."

Nichols said Devon has yet to hire an architectural firm, though there have been "extensive conversations" with a potential candidate.

He estimates the building will span more than 1 million square feet. But when asked the potential height of the building, he could only cite the size of the floor plans. By dividing 1 million square feet by the proposed floor size, the height will be at least 37 stories.

Currently, the tallest building in Oklahoma City is downtown's 36-story Chase Tower.

"To have 1 million square feet, it will probably be the tallest building downtown," Nichols said. "That's not the goal — I don't care about having the tallest building or not. I do care that it be an iconic building, that it be distinctive building. It will change the skyline downtown, and we want to build a building that everyone will be proud to have in Oklahoma City."

While he has toured buildings in major metropolitan areas including New York and Washington, Nichols could not single out a particular skyscraper as a personal favorite.

"I wish there were a building I could say, 'Go build that,'" Nichols said.

But Nichols does have some basic ideas as to what he does and does not want in a new corporate headquarters. He doesn't want the sort of windswept plazas that often are desolate around some of the downtown Oklahoma City towers built in the 1970s.

But he does want a large public space — a large enclosed atrium with cafes, a large conference center, and an enclosed garden.

"We want a fairly large distinctive atrium that would be unlike anything that exists in Oklahoma at the moment," Nichols said.

He also wants to explore opening a never-completed tunnel that connects the Galleria parking deck to the gardens, and he hopes to somehow connect to The Underground pedestrian tunnels.

But before any of this can become reality, Devon must first respond to Urban Renewal's request for development proposals. Nichols isn't legally required to resign from his board seat, which he had held since he was first appointed by former Mayor Ron Norick. Nichols said he insisted on resigning to avoid any appearance of impropriety.

If selected as the developer for the site, Devon must still negotiate parking arrangements with the city for the City Center Garage. Nichols said the discussion would likely include adding floors to the west City Center garage, which opened two years ago. The tower would also have underground parking.

Urban Renewal Executive Director JoeVan Bullard called the proposed tower the largest single development in the agency's history.

"What a great, great day this is," Bullard said. "But there are always two sides to this story, and Larry not being an Urban Renewal commissioner any longer is really saddening. He has served admirably for 20 years. He's absolutely the best example of a corporate citizen willing to take on the responsibility to serve on this voluntary board, and he has been wonderful."

Devon plans downtown skyscraper | NewsOK.com

[TheImmortal]

Nice!

[okctvnewsguy]

No one wants Class C space. Property owners need to pull their head out fo the sand. That's like trying to get high income young professionals to rent out one bedroom flats in a dodgy complex with 1970s fixtures and green shag carpeting.

Oh you mean Regency tower?

[soonerfan21]

Wow! that is news - any ideas as to the "potential architect"?

[bornhere]

Everything Nichols said is spot on, in my opinion.

I respect his decision to resign from OCURA to pursue this, and his statement that he's not as interested in having the tallest building as in having an iconic one.

As for the developers who need to upgrade the quality of their office space, I suspect many of them and perhaps most of them can't get the financing they need to do that. It's not a matter of wanting to own 'B' or 'C' class space - it's a matter of what they can afford to do with the property they've got.