Oklahoma City and Tulsa are showing strong gains in the office and industrial sectors after the second quarter, according to a recent report released by Xceligent Inc.

“The Oklahoma City industrial market begins to surge forward in Q2 2014,” said Ronald Turner, director of client services and sales. “And the Tulsa industrial market continues its slow yet steady climb back into the positive from the first quarter.”

In OKC:

• Industrial: Because the market is tight with quality industrial space, Turner says, speculative construction is on the rise, with three projects totaling 370,000 square feet in the works. “Industry experts see this as a momentum swing resulting in pent-up demand and the market set to have a great third and fourth quarter."
• Office: The Oklahoma City office market has shown positive absorption in the first two quarters, with an overall vacancy of 12.6 percent and 202,539 square feet of positive absorption. “The trend continues to see tenants upgrading their space from C-class buildings to B and A, respectively,” he says. The result is a record low 4 percent vacancy in class A buildings and 9.9 percent vacancy in class B buildings.

In Tulsa:

• Industrial: Continues its slow climb back into the positive from the first quarter, with a moderate absorption of 48,174 square feet. With a market tight on quality space, lease rates are slowly beginning to rise. Tulsa is finally seeing new construction in the east and north markets, with Centerpointe Business Park leading the way. (Formerly known as Zeledyne glass plant at 1,400,000 square feet.)
• Office: Is trending in a positive direction during the first and second quarters of 2014 with a positive absorption of 315,950 square feet. Class “A” office properties lead with 145,939 square feet absorption resulting in a 5.3 percent vacancy rate. The Tulsa office market is showing signs of improvement in each class while reporting improved activity with energy, law, engineering, staffing and medical occupiers continuing to expand, said Turner.