Oklahoma City’s Industrial Momentum Carries Into 2022
admin / April 2022
Market is Expected to See 2.9 Million Square Feet of Positive Net Absorption This Year
The industrial sector of Oklahoma City is thriving, as the momentum of 2021 has carried into early 2022.
CoStar is forecasting the market to experience 2.9 million square feet of positive net absorption in 2022. Even with a robust construction pipeline, the vacancy rate is expected to remain stable, below 4%.
Oklahoma City has traditionally been considered an owner-user market, dominated by a few major players, mainly Hobby Lobby and more recently Amazon. From 2015 to 2020, 14 million square feet of new logistics space was added to the market, with 80% preleased. There is currently 1.7 million square feet of space under construction, of which 55% is preleased.
While 1 million-square-foot deals make headlines, there are opportunities found across all building sizes. Since 2015, the market had one deal that was 500,000 square feet or greater, capturing 16% of the total leasing activity.
The fastest growing segment was leases of less than 10,000 square feet. Leases this size also captured 25% of the total leasing. The second-fastest growing segment were leases of 25,000 to 50,000 square feet.
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