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Durocher Commercial Real Estate

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Why invest in Oklahoma City?

By the Numbers

  

-- Oklahoma City's retail market began the year on a high note, holding occupancy levels at a steady 92% and experiencing positive absorption for the first time since before the pandemic.

-- The Greater Oklahoma City Chamber's annual Economic Forecast predicts personal income and GDP in the metro will return to its pre-pandemic growth levels by 2022.

-- Restaurant and travel demand is surging faster than establishments can match with workers, bringing relief to a hard-hit corner of the labor market.

-- The metro's largest positive gains in construction were found in hotels and motels.

-- Several major retailers have opened, expanded, or announced plans for development since January 2021.

Oklahoma City's  retail market began the year on a high note, holding occupancy levels at a steady 92% and experiencing positive absorption for the first time since before the pandemic.

-- The Greater Oklahoma City Chamber's annual Economic Forecast predicts personal income and GDP in the metro will return to its pre-pandemic growth levels by 2022.

-- Restaurant and travel demand is surging faster than establishments can match with workers, bringing relief to a hard-hit corner of the labor market.

-- The metro's largest positive gains in construction were found in hotels and motels.

-- Several major retailers have opened, expanded, or announced plans for development since January 2021.

Location, Location, Location

Strategic Location
Oklahoma City offers you big advantages, with a strategic location, market access and the workforce you are looking for.

  • At the junction of three of the nation's major interstates I-35, I-40 and I-44
  • Reach 178 million customers by truck the same day or overnight
  • More than 30 million people are within 400 miles, and 121 million are within 800 miles
  • Equidistant from both coasts and at the center of the I-35 NAFTA corridor
  • The nation's most inland all-weather seaport is only 90 miles to the east
  • Will Rogers World Airport exported almost 28 million pounds of freight in 2015, and imported almost 35 million, with ample expansion capacity
  • In terms of passenger traffic, Will Rogers World Airport also boasted 1.86 million enplanements and the same number of deplanements last year. WRWA has nonstop flights to 29 destinations and about 85 daily departures.


https://www.greateroklahomacity.com/main/doing-business/


Credit the Greater OKC Chamber

New to Oklahoma City?

Welcome to Oklahoma City! On this site, you'll find the tools and information you need to cover your story featuring Oklahoma City. You will also find a range of story ideas and angles, from Oklahoma City's remarkable transformation to our burgeoning bioscience community,  local attractions and more. We offer a robust selection of video clips and images, Oklahoma City data and additional sites and contacts. This site is just one example of the hospitality you'll find all around our region.


https://www.okcnewsroom.com/


Credit the Greater OKC Chamber

investing in OKC

10 Major Employers

Population and Demographics

10 Major Employers

State of Oklahoma
Government
47,300

Tinker Air Force Base
Military
24,000

University of Oklahoma - Norman
Higher Education
12,700

INTEGRIS Health
Health Care
9,000

University of Oklahoma Health Sciences Center
Higher Education
7,500

FAA Mike Monroney Aeronautical Center
Aerospace
7,000

Hobby Lobby Stores Inc
Wholesale and Retail
6,500

M

State of Oklahoma
Government
47,300

Tinker Air Force Base
Military
24,000

University of Oklahoma - Norman
Higher Education
12,700

INTEGRIS Health
Health Care
9,000

University of Oklahoma Health Sciences Center
Higher Education
7,500

FAA Mike Monroney Aeronautical Center
Aerospace
7,000

Hobby Lobby Stores Inc
Wholesale and Retail
6,500

Mercy Hospital
Health Care
5,540

Amazon
Transportation
5,000

City of Oklahoma City
Government
4,800


https://www.greateroklahomacity.com/index.php?submenu=_employers&src=employers&srctype=major_employers_map

The Workforce

Population and Demographics

10 Major Employers

Greater Oklahoma City's best asset is undoubtedly its workforce. With more than 670,000 workers and nearly 150,000 attending area colleges and universities, the region can fulfill the needs of your company.


The workforce is not just available; it is productive. Workers in the region are also free to work in any company without paying union

Greater Oklahoma City's best asset is undoubtedly its workforce. With more than 670,000 workers and nearly 150,000 attending area colleges and universities, the region can fulfill the needs of your company.


The workforce is not just available; it is productive. Workers in the region are also free to work in any company without paying union dues or fees, since Oklahoma voters passed Right-to-Work in 2001.


The Greater Oklahoma City region is home to 19 colleges and universities. Nine technology centers deliver high-quality, customized training to both new and expanding companies.


https://www.greateroklahomacity.com/subdoingbusiness/workforce-development/

Population and Demographics

Population and Demographics

Population and Demographics

OKC MSA POPULATION 

2010      1,095,421 

2018      1,252,987

2023      1,343,996

7.3% Growth (2010-2018)


NOTE: The population growth in the OKC MSA more than doubled that of the national growth from 2010 to 2018 according to Esri Business Analyst, 2018; U.S. Census



https://www.greateroklahomacity.com/subdoingbusiness/workforce-and-demographics/



report

Commercial Real Estate Stands to Benefit from Inflation

Inflation has become a near-constant topic of conversation over the last several weeks.In this report, we look at the factors contributing to rising prices in the U.S., how long elevated inflation rates are likely to continue, the role of the Federal Reserve, which is having to walk a narrower path than in prior economic expansions, as well as the major implications for commercial real estate investors.   

 Key Takeaways 

  • The U.S. economy is experiencing broad-based inflation at rates not seen since the late 1980s.   
  • Elevated inflation is being driven by both demand (stimulus, re-opening, excess savings, shifts in spending patterns) and supply-side factors (labor shortages, supply chain disruptions). Our analysis suggests that these factors will keep inflation uncomfortably high in the coming quarters, but the underlying pressures will fade as the pandemic-disruption fades and as the supply-side of the economy rushes to meet demand.   

  • Monetary conditions are as stimulating as they have ever been. For this reason, the Federal Reserve has scope to reduce accommodation as it recently did by beginning to taper its asset purchases without undue risk to the recovery. The Fed has the tools it needs to tame inflation.  

  • A tail risk to this outlook would be if wage growth increases substantially and/or if inflation expectations become unmoored. We view this as a low probability scenario, but one to watch.   

  • If inflation follows the most probable script—higher inflation for a period but not damaging to the economy—then property stands to benefit. Our analysis shows that every 1% increase in inflation is associated with a 1.1% increase in total returns. This environment also results in lower cap rates across property sectors.  

  • In other words, commercial real estate not only protects against higher inflation but provides outsize returns specifically in these environments. 


https://www.cushmanwakefield.com/en/united-states/insights/what-rising-inflation-means-for-cre-investing

Multi-family

The Oklahoma City multi-family remains strong in the post pandemic days (if thats where we are) with vacancy rates remaining near their 5-year low, and rents continuing to appreciate. The demand for housing with increased costs is and strong demand for employment is fueling much of this. Absorption continues to outpace deliveries pushing vacancy rates to their lowest levels in years, around 5%. E-mail me for a detailed report.  James@DurocherOKC.com

Apartment Occupancy Just Hit a Historic High. Is That Good?

There’s a silver lining to astronomic U.S. rent hikes: Most tenants won’t pay them, because they’re already locked into their leases.

Apartment occupancy in the U.S. has hit an all-time high, meaning anyone looking for a new place is going to have a rough time of it.

Fully 97.5% of professionally managed apartment units are spoken for as of December, the highest figure on record, according to data from the property management software company RealPage. That’s more than 2 percentage points higher than the occupancy rate in December 2020, a difference that represents hundreds of thousands of households.

“I don’t think most people realize just how crazy that is,” says Jay Parsons, deputy chief economist for RealPage. “Not only is that a record, typically we consider 95 to 96% to be essentially full.”

But for most tenants, there may be a silver lining to the lack of options. Rents for available apartments have seen record increases over the last year, yet the occupancy rates suggest that most renters aren’t paying those prices.

https://www.bloomberg.com/news/articles/2022-01-06/why-aren-t-there-any-vacant-apartments


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