IRR-Tulsa Mid-Year Viewpoint 2015 Local Market Report - Retail
The retail market in Tulsa continues to strengthen as 2015 progresses. After a strong 2014 with decreasing vacancy and higher rental rates, the market is in the second stage of recovery within the market cycle. The overall vacancy rate for both neighborhood and community centers decreased and should continue in this direction through the remainder of 2015. Rental rates for mall, community, and neighborhood retail have increased consistently over the past several years and the next 12 months should see a continued increase in rates. Both cap rates and discount rates decreased slightly over the past year but will likely remain steady over the coming months.
Absorption turned positive in 2014 and is expected to remain positive for the next several years, even with an increase in construction activity. A majority of the new development is occurring in the primary growth corridors. It was recently announced that Costco will open a store in far South Tulsa – the company’s first Oklahoma location.
The popular grocery chain Trader Joe’s is opening a store in the Brookside area of Tulsa, at the corner of 37th Street and Peoria. Southeast Tulsa has several projects planned and under construction including the 200,000 square-foot development known as the Shops at Aspen Creek and the 550,000 square-foot Oklahoma Plaza lifestyle center planned in Claremore. Given continued increases in overall occupancy levels, increasing rental rates, and new construction, the Tulsa retail market should continue to push into the recovery phase of the market cycle through the remainder of 2015.
Download the full version PDF of this Local Market Report below. It includes graphs and tables.
IRR Mid-Year Viewpoint 2015 comprises a National Overview report and 300+ two-page Local Market Reports for all key property types as well as additional resources, including metrics methodology, graphs, and tables; these free reports may be downloaded from IRR’s site here.