Demand has been strong as of late in Tulsa, Oklahoma's retail space but store closures and new product delivered to the market could cause some challenges in the near term.
An analysis from CBRE revealed net absorption was 125,057 square feet after being in negative territory at -24,952 square feet in the first six months. In addition, the category nearly doubled year-over-year from the +65,636 square feet.
Vacancies, meanwhile, inched up to 3.98 percent, which is slightly higher than the 3.91 percent recorded in the first half of 2024, and the 3.78 percent posted in all of 2023. The North Central submarket held the highest rate of unoccupied space, at 5.6 percent. The lowest was available in the North submarket, at 0.5 percent.
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The elevated vacancies come amid major store closures. CBRE notably listed CVS, Walgreens, and Big Lots, as brands that have already closed locations in Tulsa. The trend is expected to continue with other Walgreens and CVS stores that remain open in the city. Also, CBRE noted that Party City plans to shutter five stores in Oklahoma, while Joann Fabrics plans to close all of its locations in the state.
While this could create challenges for landlords, it does form some potential opportunities for retail in Tulsa.
"The pending physical closures of various companies in Tulsa will likely lead to an increase in retail space availability, creating opportunities for new businesses to enter the market or for existing ones to expand," CBRE wrote.
"The retail landscape ever evolves to better meet consumer demands, ultimately benefiting both businesses and shoppers in the region."
While CBRE did not provide a specific supply forecast, deliveries in the second half of 2024 surged to more than 305,000 square feet compared with under 4,000 in the first half. However, a 20,000-square-foot Class B property, called 5154 E Skelly, was scheduled to be delivered in February 2025.
Some major leases in the second half included Crunch Fitness signing for 41,326 square feet in the East submarket, Fun City agreeing to take 33,897 square feet in Midtown, and Whole Foods Market's deal for 32,247 square feet in Midtown.
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