By Darrell Morrow
Oklahoma City's industrial building vacancy rate continued its
shrinking trend during second quarter 1992. It dipped to 9.78
percent from 10.8 percent the first quarter, said Jim Austin,
managing officer of CB Commercial Real Estate Group Inc., which
does quarterly surveys of the availability of marketable
The industrial vacancy rate has reached a low enough level
that sales and rental prices likely will increase and new
construction is expected to rise. Rental rates are predicted to
increase 10 percent by year's end.
About 6.4 million square feet remained vacant at the end of
the second quarter June 30. Cumulative absorption for the first
two quarters was 1.4 million square feet, with 915,827 square
feet of that occuring in the second quarter, Austin said.
Annualized 1992 absorption of vacant industrial space was
estimated at 2.8 million square feet based on the present trend.
The CB Commercial survey analyzed 1,266 firms. It considers
all vacancies of more than 10,000 square feet. It estimated the
base square footage of Oklahoma City's industrial space at 65.52
"Of the 900,000 square feet absorbed in the second quarter,
much of the activity was in large facilities such as 96,000
square feet leased by API, a new manufacturer to the city, and
the purchase of a 138,000-squareot American Trailers facility by
a local manufacturer. Yellow Freight completed its purchase of
the Mistletoe Express terminal which contains 145,000 square
feet," Austin said.
Most of the larger industrial buildings remaining vacant have
limited usage due to their specialized construction for past
uses, said Bob Puckett, industrial properties associate for CB
"We have two dynamics working the market right now. There is
relatively little quality product out there across the board, and
so it is forcing companies to be more flexible on how they use
space. The second thing is that within some specialty markets,
such as dockgh bulk storage space, there is a real tangible
shortage of space," Puckett said.
"You can say, for instance, within the 90,000-squareot
category there are a couple of spaces out there _ and that is all
there are, just a couple. When we deal with out-ofwn clients
coming in from the west coast, they are used to having 25 to 30
options. They are quite uncomfortable having only two options in
the market. That has been hurting us," he said.
"Also, a lot of these companies are looking for really first
class, high image landscaped industrial facilities located in
highage industrial parks. We have practically none of those
spaces available right now. …