OKC Economic Update

UPDATE to ARTICLE We wrote about OKC on Jan 6, 2021

We have continued to experience healthy rent growth across our portfolio over the last year. Which is in line with the market average. While we continue to do very well on the expense side as well. We will go into some recent numbers of why we continue to have tailwinds in the OKC market. For example, Amazon continues to increase its facilities in OKC which has brought many residents to our meridian apartments. 

 Major Growth Numbers

1. 2010-2020 Population Growth 13.8 % 172 k additional people. - 1,425,695 -census, 1 of only 14 cities in the nation to add more than 100k people. “By 2023, the population for the Oklahoma City MSA is expected to be 1.52 million people. At the current growth rate, the metro would reach two million people by 2040.”

2. 2010-2020 GDP grew by 25% to 74.4 billion

3. As of December 2021, 1.6 % unemployment- lowest ever experienced (30+ years).

4. Lowest Vacancy on record at 7.4 % 

5. 8.3 % rent growth in the last 12 months

6. The average Rent is 880/month which is about a 45% discount relative to the national average. 

MAPS Program

“The MAPS program continues to be expanded in its 4th iteration. In 1993, Oklahoma City voters decided to turn around their struggling city by doing something about it: approving a new tax on themselves. Since then, Oklahoma City has undergone a transformation under the original MAPS that has elevated the community to what former Mayor Mick Cornett calls a “big league” city.”

“MAPS 4 is a public improvement program funded by an eight-year penny sales tax that will raise a projected $978 million. More than 70 percent of MAPS 4 funding is dedicated to the neighborhood and human needs. The remainder addresses quality of life and job-creating initiatives.”

MAPS 4 city council fully approved September 14, 2021

The 16 MAPS 4 projects are:

• Parks ($140 million)

• Youth Centers ($110 million)

• Senior Wellness Centers ($30 million)

• Mental Health and Addiction ($40 million)

• Family Justice Center operated by Palomar ($38 million)

• Transit ($87 million)

• Sidewalks, bike lanes, trails and streetlights ($87 million)

• Homelessness ($50 million)

• Paycom Center and related facilities ($115 million)

• Animal Shelter ($38 million)

• Fairgrounds Coliseum ($63 million)

• Diversion Hub ($17 million)

• Innovation District ($71 million)

• Clara Luper Civil Rights Center ($25 million)

• Beautification ($30 million)

• Multipurpose Stadium ($37 million)

Below more details about the last MAPS program.

Some Notable 2021 Business Openings

Mom’s Meals, an Iowa-based firm formally known as PurFoods, built a 200,000 square-foot kitchen/food preparation facility in the Rockwell Industrial Park just west of Will Rogers World Airport. Per public reports, the $17 million facilities will initially employ 125 people with plans to expand to 550.

Carvana, the fastest-growing auto retailer in the U.S., announced plans to open an Inspection and Reconditioning Center (IRC) in Oklahoma City, helping the company address increased demand and bringing a projected 350 new jobs to Oklahoma City.

Top-rated wireless carrier Consumer Cellular announced it will bring 300 full-time and part-time jobs to Oklahoma City.

Signify Health, Inc. is a leading healthcare platform that leverages advanced analytics, technology, and nationwide healthcare networks to create and power value-based payment programs. The company announced plans to open a new service center in Oklahoma City in February 2022. The company expects to create more than 200 new jobs in Greater Oklahoma City at its new 25,000 square-foot office space on Memorial Road.

Couple Large Firms Growing the Tech Presence

The expansion of Heartland Payment Systems is a positive sign for the diversification of the Oklahoma City economy. In mid-2020, Heartland completed its new $40 million headquarters at NW Fifth and Broadway. The very nice modern building in the middle of downtown. The seven-story, 100,000-SF office will house 550 employees, and the company is adding another 400 jobs to the recently renovated Mideke building in Bricktown.

Homegrown tech firm Paycom has 3,000 employees and has plenty of room for growth after an expansion into their campus totaling 500,000 SF.

Conclusion

All in all, we are thoroughly impressed with the direction OKC is going.  It’s continued efforts to diversify its economy. We are excited about our growth in the market. The ongoing willingness from the public in OKC will help catapult the next decade of growth. All of these tailwinds will continue to push the performance at our complexes and returns for our investors.

Sources:

CoStar, Inc.

OKC Chamber of Commerce

US Census

US Burea of Labor & Statistics

www.okc.gov/government/maps-3/maps-history