Vision TULSA - The Tulsa City Council

Large office building sales continue to elude theTulsa area in this economy largely due to financingconstraints. However, there were seven officebuildingsales in the City of Tulsa with squarefootage ranging from 2,050 square feet to the11,232-square-foot office building located at 1616South Main, which sold to ETI Holdings.As the overall economy continues to improve, theoffice leasing market will follow, and when jobgrowth begins to gain momentum, Tulsa will gainsignificant ground.Retail MarketTulsa’s retail market has recently experienced anincrease in retailer activity in the midst of a stillstruggling national economy that continues to beplagued by high gas prices, high unemployment,and lack of personal spending. Modest rentgrowth occurred, increasing from last December’s$10.86 per square foot to mid-year’s $11.59per square foot. Much of this growth is tied toClass A space in Midtown, South Central, and theSoutheast Submarket where rents are higher.Market vacancy continues to be a challenge,with a slight increase from six months agofrom 11.69% to 12.11%. In total, a negative netabsorption of 78,695 square feet is reported. Theincrease is mainly attributed to the North Centraland Southeast Submarkets in Class C and Dproperty classes where vacancy increased 4.71%from six months ago.Tulsa’s natural food store industry includes WholeFoods and Akin’s Natural Stores. However, in2012 several new organic food concepts willenter the market. Smaller in size (±25,000 sf)than conventional grocery stores, these focus onquality organic natural foods often sourced locally.Both Sunflower Farmers Market and SproutsFarmers Market are considering expansion toTulsa as well.Dick’s Sporting Goods has announced plansfor three new stores. Buy Buy Baby, the sistercompany of Bed Bath and Beyond, has openedone new store along East 71st Street. LifetimeFitness announced plans to build its first facility inTulsa on South Memorial. Sam’s Club, as well asStaples, opened at Tulsa Hills Shopping Center.Tulsa’s unemployment rate showed signs ofsignificant improvement with a decline from 7.70%at year-end to 5.60%. Oklahoma benefits frommore job creation than the nation simply becauseof our strong energy sector. Tulsa remainssignificantly below the national average rate,which is still lingering near 9% to date.After 15 years in Tulsa, Borders closed its doorson its two locations as a result of the strugglingchain’s bankruptcy and a decline in overallbook sales. The chain may close up to 275 ofc o n t i n u e d o n p a g e 7 0Source: CBRE Marketview Tulsa Office Mid Year 2011t u l s a c o u n c i l . o r g | VISION TULSA 2012 69