Newspaper article THE JOURNAL RECORD

OKC Ranks 23rd in U.S. for Office Rent Changes

Newspaper article THE JOURNAL RECORD

OKC Ranks 23rd in U.S. for Office Rent Changes

Article excerpt

Oklahoma City ranked close to average for the nation in office rent changes in 1991, according to a report distributed by CB Commercial Real Estate Group Inc.-Torto Wheaton Research of Boston, Mass.

For office rents in 50 markets, 32 markets showed a decline, 17 markets showed an increase and one remained unchanged. Fluctuations were between a negative 22.9 percent to a positive 16.1 percent. The average change in office rents for the 50 markets showed a 2.5 percent decline.

Oklahoma City ranked 23 with a change of negative 2.27 percent. Office rents per square foot were $8.94 compared with $9.15 in 1990.

"I think it's more important to notice that Oklahoma City is the lowest rent of all," said Jim Austin, managing officer of CB Commercial Real Estate in Oklahoma City.

The decrease in Oklahoma City is mostly from the lower quality properties, or Class C properties, Austin said. What is a Class C property in Oklahoma City may not be a Class C property in Chicago, he said. Class A is the highest ranking property, followed by Class B. "To me it just looks like we are holding our own. Our percentage change is not much of a change." The reported figures are being released for the first time and are from a comparison of the leases signed by CB Commercial in 1991 with those signed in 1990, the report stated.

"The data is adjusted to standardize for the length of the lease, the size of the lease, the type of building and the location within the market.

The figures reported are for a gross rent lease of five years, 10,000 square feet in a high rise, existing office building," according to the report.

Figures are derived from the leases signed by the brokers of CB Commercial and are statistically standardized by Professor Torto of the University of Massachusetts in Boston and Professor Wheaton of Massachusetts Institute of Technology.

Torto Wheaton Research is a division of CB Commercial Real Estate Group. It provides market information and economic and forecasting services to a client base of institutional investors, lenders and realty managers. …

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