ECONOMY:
Fueled by consistent investment and expanding industry diversity, Oklahoma
City continues to demonstrate strong economic momentum. Unemployment remains low
at 2.9% in Q4, well below the national average, while job growth continues to outpace
the U.S. rate. The metro benefits from competitive state incentives, a skilled labor force,
and a cost-effective operating environment that support ongoing business expansion.
While energy remains a key economic pillar, the city is experiencing rapid growth in
aerospace, technology, and manufacturing, driven by major investments from companies
such as Boeing, Skydweller Aero, and Costco. Oklahoma City is also home to leading
corporations including Devon Energy, Continental Resources, Love’s Travel Stops &
Country Stores, and Paycom, reflecting a broad and increasingly diverse corporate base.
Population trends further reinforce the metro’s strength. Since 2010, the Oklahoma City
metro area has grown by 18%, significantly outpacing many peer markets. Unlike many
large and mid-size U.S. cities, Oklahoma City continues to see positive net population
growth year-over-year, including an increase of approximately 9,000 residents in Q4
This sustained growth underscores the region’s long-term stability and appeal to
both businesses and residents.
DEMAND:
The Oklahoma City office market continues to perform with notable stability,
supported by consistent tenant activity and a balanced supply pipeline. A favorable
regulatory climate, affordable occupancy costs, and measured new construction have
helped the market maintain steady fundamentals. As a result, available office space in the
metro is absorbed more quickly than in many other U.S. markets, with average marketing
times of about 12 months compared to more than 14 months nationally.
Rental rates remain among the most attractive in the country, averaging roughly
$20.60 per square foot (psf)—significantly below the national average of $36.79 psf.
This affordability has been a key factor in sustaining demand across a wide range of
industries. Much of the leasing momentum is focused in the North and Northwest
submarkets, where updated product and access to a skilled workforce continue to draw
tenants.
Within the urban core, adaptive reuse projects have played an important role in
reshaping the inventory base. The conversion of older office buildings to residential uses
has helped remove outdated space from the market and relieve vacancy pressures.
OUTLOOK:
Oklahoma City’s office market is shifting toward smaller, high-quality spaces,
with the North and Northwest submarkets driving roughly 40% of leasing activity.
Landlords are enhancing amenities and shared areas to attract tenants, while vacancy
remains elevated, but leasing is supported by competitive rents and generous tenant
improvement (TI) packages. TI allowances have nearly doubled since pre-pandemic
levels, typically $30–$50 psf reaching $75–$100 psf for shell space, with limited free rent
of one to two months depending on deal size and ownership.
On the investment side, moderating interest rates are improving deal flow, while
redevelopment opportunities—particularly office-to-multifamily conversions—continue
to attract investors. As underutilized office space is repurposed, vacancy is expected to
decline, supporting a more stable and dynamic market environment.