Occupancy and rents remain stable with an positive outlook for 2018
- Within Tulsa’s retail market, negative absorption dropped the occupancy rate 20 basis points (bps) over Q1 2018 to 94.8%. Rental rates increased despite the ebb in absorption as total metro retail sales are forecasted to reach $11.3 billion in 2018, a 4.1% increase from 2017.
Health and fitness continues to expand
- A continued trend nationally and locally is the expansion of health and fitness-related retail space. VASA Fitness, a Utah based full-service gym, announced their planned entry into Oklahoma with a 57,000-sq.-ft. facility backfilling a former grocer. Additionally, CycleBar is set to open in Q2 2018 with its first Tulsa location. It will provide consumers with a 50-cycle studio with classes centered around riding with weights and choreography.
Retail development remains steady despite rising costs
- Multiple construction projects across the Tulsa metro have continued to pre-lease space as developers push south following population growth in Broken Arrow and Jenks. As labor and borrowing costs remain elevated, construction starts have slowed pace as late stage large scale developments are set to deliver mid-year.
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 Tulsa, the retailer is responsible for two locations, accounting for over 80,000-sq.-ft. of space.