Tulsa office vacancies decline slightly
By ROBERT EVATT World Business Writer on Aug 15, 2013, at 2:30 AM Updated on 8/15/13 at 2:45 AM
Real Estate
U.S. homebuilders' confidence in the housing market held this month at its highest level in nearly eight years. But builders are starting to worry that sales may slow if mortgage rates continue to rise.
New home construction in the Tulsa region from January to August is outpacing last year's numbers, a continuation of the upward tick that started in 2012 following a six-year slide.
Tulsa-area office vacancies declined slightly in the first half of 2013, according to an industry report.
CB Richard Ellis/Oklahoma says 22.1 percent of all office space in the metro area was vacant at June 30, down 0.5 percent from the end of 2012.
There was 374,285 square feet of positive absorption in the first half of the year, meaning overall available square footage decreased despite new construction.
Vacancies in Class A, the newest, most desirable spaces, fell to 3.06 percent, which is the lowest in recent years, author Terry Payne noted in the report.
Most areas of metro Tulsa saw fewer vacancies; the downtown submarket was mainly unchanged at 22.5 percent vacant.
Payne said the strengthening economy, led by a strong energy sector, helped fuel the need for more office space. The local market has added an estimated 5,500 jobs over the last year.
Some of the biggest office lease deals included Cimarex Energy Co.'s occupation of most of the 17-story One Place Tower, and Magellan Midstream Partners LP's lease of an entire floor in One Technology Center, both downtown.
Payne said in the report he was optimistic that office vacancies will continue to drop. However, he noted concern due to uncertainty about the American Airlines-US Airways merger plan as well as the impact of Hertz Global Holdings Inc.'s acquisition of Dollar Thrifty Automotive Group Inc.
Robert Evatt 918-581-8447
robert.evatt@tulsaworld.com
Original Print Headline: Tulsa office vacancies decline
Real Estate
U.S. homebuilders' confidence in the housing market held this month at its highest level in nearly eight years. But builders are starting to worry that sales may slow if mortgage rates continue to rise.
New home construction in the Tulsa region from January to August is outpacing last year's numbers, a continuation of the upward tick that started in 2012 following a six-year slide.
