Memorial corridor flush with activity
A continued trend nationally and locally is the expansion of mixed-use related retail space. The 190-acre Chisholm Creek development announced and started construction on a number of retailers in Q1 2018 including Chalk Sports Bar, Firebirds, Birra Birra, Hopdoddy, Uncle Julio’s and Alamo Drafthouse Cinema. In particular, Alamo Drafthouse Cinema is a result of Oklahoma’s loosening of alcohol restrictions paving the way for niche retail expansion into the Sooner State.
Investment sales see an uptick
Q1 2018 ended the quarter with $88.3 million in investment sales, nearly doubling the transaction volume from the previous quarter. Of note, is the 297,788-sq.-ft. Quail Springs Marketplace that traded for $43.5 million.
Occupancy and rents Remain stable with an positive outlook for 2018
Within Oklahoma City’s retail market, the negative absorption dropped the occupancy rate 10 basis points (bps) over Q1 2018 to 93.0%. Rental rates increased despite the ebb in absorption as total metro retail sales are forecasted to reach $15.2 billion in 2018, a 4.9% increase from 2017.
Toys r us announces surprise liquidation of its portfolio - nationwide
In March, Toys R Us filed a motion seeking bankruptcy court approval to begin liquidation of its 735 U.S and Puerto Rico stores. The closures are expected to occur within the first nine months of 2018. In Oklahoma City, the retailer is responsible for 4 locations, accounting for over 172,000-sq.-ft. of space.