Update on OKC Office Market Space

**ljbab728** · 01-18-2014, 02:32 AM

http://www.oklahoman.com/article/3924950?embargo=1

BY RICHARD MIZEPUBLISHED: JANUARY 18, 2014
The forest tells more than the trees in a couple of year-end office market reports out this week, but things look pretty good, either way.

“The Dust Settles,” Newmark Grubb Levy Strange Beffort said in its report for the fourth quarter of 2013. That would be the dust from shrinking Chesapeake Energy Corp.'s rapid divestment of office buildings as it ebbs back to its corporate campus at NW 63 and Western Avenue.
Love's Travel Stops & Country Stores' need for more front-office space — as the chain embarks on a 30-store expansion this year — timed well with Chesapeake's desire to unload buildings.

Love's opened its new 67,500-square-foot building at its headquarters at 10601 N Pennsylvania Ave., then bought Chesapeake-owned Atrium Towers, 3501 and 3503 NW 63, and the former Chesapeake Land & Title building at 3601 NW 63. Now 3503 NW 63 is for lease.

Chesapeake also sold Central Park One, 525 Central Park Drive, and Central Park Two, 515 Central Park Drive, southwest of Interstate 44 and N Lincoln Boulevard.

Devon Energy Corp.'s lease expired at First National Center, 120 N Robinson Ave., as Devon consolidated into its new headquarters at 333 W Sheridan Ave. SandRidge Energy also consolidated into its headquarters at 123 Robert S. Kerr Ave.

“Remarkably, almost all of this space was immediately absorbed by other tenants,” Newmark Grubb Levy Strange Beffort noted in the report, prepared by Julie Anewalt and Vicki Wells.
Vacancy at First National Center and Chase Tower, 100 N Broadway Ave., due to Devon's departure leaves space that isn't necessarily that attractive right now for lack of parking. But with parking construction and expansion in the works, that space will work back into viability, the firm said.

More older, functionally obsolete office buildings will be converted to multifamily residential on continued demand for housing downtown, CB Richard Ellis-Oklahoma said.

**hoya** · 01-20-2014, 10:59 PM

More older, functionally obsolete office buildings will be converted to multifamily residential on continued demand for housing downtown, CB Richard Ellis-Oklahoma said.

Oh yes please.

**ljbab728** · 02-15-2014, 12:21 AM

A new and very positive update by Richard Mize.

http://www.oklahoman.com/article/3933869?embargo=1

Chesapeake Energy Corp. cast an 800,000-square-foot shadow over Oklahoma City’s office market last year, but the city shined on.

Suburban vacancy still dropped from 11.8 percent to 11.6 percent “despite the onslaught of inventory,” Price Edwards & Co. reported in its 2013 year-end office market summary. “The suburban markets continue to thrive,” the firm said, even with Chesapeake’s divestiture of office buildings and consolidation onto its corporate campus at NW 63 and Western Avenue.
“Despite approximately 800,000 square feet of inventory being added to the suburban market, more space is occupied than it was a year ago. Had the Chesapeake space not been added to the market, it would have easily been the best year for the suburbs since the inception of our reports.”

Meanwhile, downtown “was admirably fighting through the task of replacing its largest user of leased space” as Devon Energy Corp. vacated some 225,000 square feet at First National Center, 120 N Robinson, and the newly renovated Braniff Building added another 90,000 square feet at 324 N Robinson.

The Central Business District absorbed just 161,000 square feet of space, pushing vacancy up from 24.6 percent to 28.6 percent, according to Price Edwards

“Despite nearly 1 million square feet of additional inventory being added to the market by two different energy companies, the market was incredibly stable and rental rates actually increased.”

Price called the market’s performance in 2013 “staggering.”