The Oklahoma City industrial market saw significant growth in the second quarter of 2023, with a notable increase in net absorption. The market recorded positive net absorption of over 1 million square feet, and vacancy rates slightly decreased from 4.2% to 3.9%. There were 75 lease transactions reported during this period, with average lease rates for all classes at $8.41/SF/YR/NNN.
In terms of sales activity, the second quarter showed a positive trend compared to the first quarter of 2023. There were 66 sale transactions with a total sales volume of $72 million, indicating an improvement from the previous quarter's 45 transactions with a total sales volume of $26 million. Additionally, the average sales price per building square foot was $60.73 which is down year over year from $101.76.
The overall industrial rental rate for the market increased to $8.41/SF/YR/NNN in Q2 2023 from $8.25/SF/YR/NNN in Q1 2023. The class A average lease rate was $7.60 which is odd since the average lease rate for Class B comes in higher at $8.22. Leases in the Moore/ Norman submarket average the highest rate in the metro at $9.10 and Edmond close behind it at $9.05
Despite the market's growth slowing down compared to previous years, the outlook remains optimistic, with hopes of limited rate hikes as the FED raised rates again by 25 bps. Industrial real estate continues to be an attractive option for investors, particularly with the ongoing stability in leasing activities and encouraging sales figures.
Commentaires