Oklahoma City’s Industrial Market Thrives Amid Uncertainty
admin / August 2020
Leasing in Second Quarter Surpasses First Quarter by 600,000 Square Feet
Compared to other property types, Oklahoma City’s industrial market has been mostly immune to the pandemic-induced economic downturn. While 2019 was a record year, defined by the completion of Amazon’s 2.6-million-square-foot facility, additional developments have followed in its wake.
In the first eight months of 2020, the region experienced 2.5 million square feet of leasing activity, and there have been 23 leases of more than 30,000 square feet.
Several e-commerce and retail plays have driven activity. Third-party logistics company Encore Fulfillment, specializing in e-commerce, signed a 121,000-square-foot lease this summer. And Amazon is expanding its presence in the market with a 312,000-square-foot lease in southeast Oklahoma City.
The market is holding up quite well, absorbing 1.5 million square feet in 2020. Still, that is down from the 1.9 million square feet the market experienced in 2019. A relatively muted construction pipeline of 200,000 square feet should keep the vacancy rate between 4% and 5% through 2024.
Oklahoma City’s comparative advantages, central location and proximity to interstate highways and rail, along with stable economic underpinnings, have severed it well during the pandemic. As warehouse space is rapidly becoming the new storefront, the market is anticipated to experience sustained growth.
« Previous Next »
