Lobar Oil, Co. has leased a property located at 3500 South Boulevard, Suite D-4 consisting of 1,150 square feet. Minor modifications to the office suite are planned and Lobar Oil anticipates moving to this location around November 1, 2008. Lee Bollinger, CCIM with NAI Sullivan Group and Bryan Stinson with Oxford Management Corporation handled the transaction.
Executive Assets, Inc. has leased 2,625 square feet in Kelly Centre located at 610 South Kelly, Suite S. This business is Realty Executive of Edmond and the space will be utilized as a real estate office. Lee Bollinger, CCIM with NAI Sullivan Group and Paul Dobson with Realty Executives of Edmond handled the transaction.
Pro-Business Climate, Diverse Economy Give Strength to Oklahoma City Property Market
Forbes Magazine recently ranked Oklahoma City as the most recession proof city in the nation, thanks to soaring energy, manufacturing, agricultural and housing industries. It is the hope of businesses across the city that this news will entice property buyers to invest in Oklahoma City.
A five-year economic forecast prepared for Oklahoma City indicated that the per capita income is 107% of the national average and the cost of living is only 93% of the national average. These factors, along with pro-business city leaders, make Oklahoma City a business friendly city.
The retail market in Oklahoma City has been strong during the past 12 months. The arrival of the new NBA franchise, the Oklahoma City Thunder, will bring more high income residents to the city, which will help drive demand for the more upscale retail currently lacking in Oklahoma City. Oil and gas corporations are fueling the market and keeping vacancy to a low 5% for Class A office space.
Office rental rates continue to rise. The demand for Class A space will be driven by the energy, finance and medical sectors. However, proposed new construction of approximately 1 million square feet of office space along the Memorial and Broadway Extension corridor will impact absorption.
Industrial property is in strong demand with a declining vacancy rate of 9% leaving limited availability in the market. Active speculative development for two buildings totaling over 450,000 square feet has been announced. There has been no significant speculative development in six years.
If everyone in Oklahoma City opened a fortune cookie 15 years ago, accurate fortunes might have read something like, “Don’t relocate, good things are on the way.”
Considered a city in decline 20 years ago, Oklahoma City has recently experienced an incredible renaissance that has most metropolitan areas taking notes. Everyone should give their neighbor a high-five for the growth and attention this city is getting. Not only is Oklahoma City becoming a city where people want to live, and equally important, it’s where businesses want to be.
One of the areas most on the rise is Bricktown. Fifteen years ago, one could turn Sheridan into a golf driving range and nobody would complain. Today, not only are people walking the streets as if they live there (which they now do) but businesses are packed with locals and out-of-town guests. Just ask James Durocher.
“This is a great piece of property, a unique piece of real estate in Bricktown. The land is situated at I-235 and I-44," Durocher said recently.
A real estate broker with NAI Sullivan Group, Durocher closed on a property sold to SKH, L.L.C. for a brand new hotel to anchor the east side of Bricktown. The three-acre lot (now vacant) will be built into a seven-story, 125-room hotel near the crossing of I-44 and I-235. That’s not all.
Brad Baker, also of NAI Sullivan Group, closed on a property located in the Miller Jackson Building off the Bricktown Canal, which in March 2009 will be the new home of the Coyote Ugly Saloon, a national chain made famous in 2000’s hit film, “Coyote Ugly.” Oh yes, almost forgot, OKC can also call itself home to the newest member of the National Basketball Association. The OKC Thunder, I like the sound of that. I’m either anxious… or afraid to open another fortune cookie. What’s next? A city-wide diet?
The Coyote Ugly Saloon, a chain featuring dancing female bartenders, is planned for Oklahoma City's Bricktown entertainment district.
Brad Baker of NAI Sullivan Group, a commercial real estate company, helped the business find a spot for its first Oklahoma locations. The saloon is expected to open in six months in the Miller Jackson building. He said the Oklahoma City Thunder NBA franchise helped sway the company decide to open a bar in this area.
Coyote Ugly Saloon was started in New York City in 1993 by Liliana Lovell. The bar spawned a motion picture in 2000 and a reality television show on Country Music Television. The company has 13 saloons around the country.
Baker said the space lent itself to the saloon's specifications, which include high ceilings to give the sometimes scantily clad bartenders room to dance on the bar.
The Coyote Ugly Saloon is expected to open in the next six months, and is known for its curvy and often scantily clad female bartenders dancing to country music on bar tops. The saloon will fill 4,300 square feet in the 26,900-square-foot Miller Jackson building, at 115 E. California, which has been owned by the same family for decades. Brad Baker, with NAI Sullivan Group, helped Coyote Ugly find a spot for its first Oklahoma saloon. Baker said one factor helped sway the company to seriously consider Oklahoma City. “They were somewhat interested in this market, ” he said. “I think once the NBA was more in line it definitely swayed them.”
Warrior Holdings, L.L.C. has purchased a property located at 1210 West Britton Road consisting of 4,497 square feet from Joe and Joyce Jones for $60,000. The facility will be utilized as an investment property. Sean O’Grady with NAI Sullivan Group handled the transaction.
Clip from Oklahoma real estate experts comment on local market OKC Business Article (9-29-08)
“The older parts are going to hurt, which means brokers are going to have to come up with creative new uses for those properties,” said James Durocher, retail broker for NAI Sullivan Group. “Town Center Plaza brought the right tenant mix for that demographic, and Sooner (Investments) did a good job building an attractive center. And, it’s not just Midwest City it’s pulling from, it’s everything east of that area, as well.”
According to Durocher, Del City has been experiencing some of the same problems with the area near 15th Street and Sooner Road, where a Wal-Mart Supercenter has been built, and just west of the area.
“Del City would really be hurting if they had not gotten that Wal-Mart Supercenter,” he said. “That’s been a huge shot in the arm, whatever development that may happen for that area is going to be a major boost.”
To Del City’s south, along the I-40 corridor, new hotel and restaurant developments have broken ground.
“It will be a different type of retail mix than what you see in Midwest City,” Durocher said. “You’ll be able to have it all in that area.”
He also said the mom-and-pop retailers in the older areas will need to find their niche. The good news, he said, is most of those retailers are located in older centers that are paid for.
Boom Enterprises, L.L.C. has acquired a Sinclair gas station located at 3701 South May Avenue consisting of 1,247 square feet for $275,000. The owner plans to remodel the gas station and convert the garage into a convenience store. He will continue to operate under the Sinclair name. The sale also included less than one acre of land according to James Durocher with NAI Sullivan Group who handled the transaction. Durocher noted that the building had been a convenience store in earlier years and applauded the new buyer for his creative financing and use of the property.
Behfar Jahanshahi has leased a property located at 510 East Memorial Road, Suite A3 & A4 consisting of 4,150 square feet from GEC Properties, L.L.C. This business is Interworks, Inc. and will be utilized as a contracting office. Brad Baker with NAI Sullivan Group handled the transaction.
Mahan A. 8402, L.L.C. has purchased a property located at 8402 North I-35 Service Road consisting of 9 acres from Clement Trust for $499,591. The facility will be utilized as a retail site. Irmon Gray with NAI Sullivan Group represented the seller and Sue McNair with Churchill Brown represented the buyer. Closing was held at American Guaranty Title Company by Barbara Chatman.