Economy: Oklahoma City’s Labor Market Has Outperformed The Nation’s All Year, With Unemployment Holding Near 3.6% Against A 4.2% U.S. Rate And Job Growth Continuing To Outpace The Broader Country.
Oklahoma City’s labor market has outperformed the nation’s all year, with unemployment holding near 3.6% against a 4.2% U.S. rate and job growth continuing to outpace the broader country. That strength rests on an economy that’s no longer tied to a single industry, with aerospace, technology, and manufacturing joining energy as core drivers, backed by employers like Devon Energy, Continental Resources, Love’s Travel Stops & Country Stores, Paycom, Tinker Air Force Base, and the State of Oklahoma. A pro-business regulatory climate, affordable operating costs, a deep talent pool, and generous state incentives have made the metro increasingly attractive to companies looking to relocate or expand. The population is responding in kind, growing about 18% since 2010, well ahead of Tulsa’s 11% gain, with Oklahoma County and Canadian County leading the increase.
Demand: Oklahoma City’s Pricing Edge Remains One Of Its Strongest Draws, With Asking Rents Averaging $21.25 Per Square Foot Against A $37.78 National Benchmark Even After Several Years Of Largely Flat Rent Growth.
Oklahoma City’s pricing edge remains one of its strongest draws, with asking rents averaging $21.25 per square foot against a $37.78 national benchmark even after several years of largely flat rent growth. That affordability pairs with speed: leases here typically close in about 10 months, well ahead of the 14-month national average, and many deals close in under eight months. Vacancy has stayed in check too, helped by measured new supply and a tenant base that’s held steady even as leasing velocity has cooled from the sharper pullbacks seen in comparable markets. Most of that demand is landing in the North and Northwest submarkets, where newer buildings and proximity to skilled labor keep landlords in a strong position.
Outlook: Oklahoma City Leasing Activity Continues To Gain Traction: Volume Rose Roughly 13% Over The Past Year To 16.3 Million Square Feet, Back In Range Of 2015-19 Pre-Pandemic Norms, Even As Average Deal Size Ran About 10% Below Recent Averages, Reflecting A Shift Toward Smaller, Higher-Quality Footprints.
Oklahoma City leasing activity continues to gain traction: volume rose roughly 13% over the past year to 16.3 million square feet, back in range of 2015-19 pre-pandemic norms, even as average deal size ran about 10% below recent averages, reflecting a shift toward smaller, higher-quality footprints. That shift is pushing landlords to reinvest in amenities and shared spaces to stay competitive. Concessions remain central to the pitch: TI allowances typically run $30-$50 per square foot, climbing to $75-$100 for shell space in newer buildings, with packages near double pre-pandemic levels and still tenant-favored, while free rent stays available but capped at one to two months as landlords grow more selective. Vacancy remains elevated, though office-to-multifamily conversions and other adaptive reuse are steadily pulling older stock from the market and easing pressure. Weak demand has hit rents, NOI, and investor confidence, and higher borrowing costs have slowed deal volume and widened the bid-ask spread, but easing rates are now driving early signs of a more balanced market. We expect leasing activity to keep climbing from here, though the market should remain fairly tenant-favored in the near term.
