[cre blog] Concerns over national economy slows OKC office leasing

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The struggles in the national economy appear to be weighing on the minds of Oklahoma City office tenants, as leasing activity slowed during the second quarter. Despite the slowing, the market did absorb more than 60,000 square feet of space and vacancy fell below 11 percent, according to Xceligent’s 2^nd Quarter Oklahoma City Office Market Trends report.

The report noted that the absorption was much slower than what was seen in the previous two quarters; however, market conditions remain strong as supply remains tight in the Class A and B markets. Xceligent noted that supply has become the tightest in the North submarket and along the Memorial Road corridor. It also noted that supply is also tightening in the downtown market as well. Overall Class A vacancy was reported to be at 4.8 percent during the quarter and Class B vacancy was 8.4 percent.

Xceligent said the reason for the slowdown in leasing activity was because deals are taking longer to complete. Local brokers said that interest is strong by tenants, but tenants’ concerns about the national economy and political uncertainty has them moving much slower than in previous quarters.

Statistics showed that the North submarket experienced the most absorption with 26,727 square feet, followed by the Memorial Road corridor with 21.453 square feet and the downtown market with 15,100 square feet. The largest deal of the quarter was an unnamed law firm that leased 34,900 in the Northpoint Commerce Center.