Vast Amount Of Downtown OKC Vacancies Could Double
OKLAHOMA CITY - Downtown Oklahoma City is growing, but so too are its vacancies for prime office space.
“Currently we are at 18 percent, by the end 2018 that could double,” said Price Edwards and Co. Managing Broker Craig Tucker.
Tucker said the vacancy rate could double if SandRidge ends up leaving its downtown building with 350,000 square feet of office space.
The energy company recently cut 30 percent of its workforce and may merge with a Tulsa based company.
The 18 percent vacancy rate was the number at the end of 2017. It does not include the new 27 floor BOK Park Plaza building on Sheridan. Half of the office space has been set aside for Devon, the majority of the other half came on line at the beginning for the year.
“When companies look at the economic vitality of the city, when they see a big vacancy, it’s one of many factors they look at, but it’s not one that promotes health,” said Tucker.
Tucker's numbers also don't take into account what are called "shadow vacancies" downtown.
Shadow vacancies are spaces leased by a company, but are currently not fully occupied.
Bank of Oklahoma moved into its new Park Plaza building in January. The move has created a void at their old 80,000 square foot downtown building, which now needs a new tenant.
“You feel like the economy is coming back right now. The oil industry is improving. We feel good about everything really except the excess office space,” said Tucker.