Norman Retailers Build on Sooner Spirit

By Brandice J. O'Brien

The Journal Record

Norman, both a suburb and the third-most-populated city in the state, competently competes with Oklahoma City for commercial growth. In multiple areas, the home to the University of Oklahoma Sooners comes out on top.

"Norman by far has the lowest retail vacancy rate in the entire metro area and as a result, has one of the strongest retail trades," said Darren Currin, vice president and research director for OKC Property Research.

As of March, a retail market survey showed a vacancy rate of 4 percent, with the highest vacancy reported at Lindsey Park Center at 1233 W. Lindsey St. Constructed in 1969, the class E building rents for $9 per square foot and has 2,800 square feet out of 22,000 square feet of rentable space available, according to Equity Realty data.

Seventeen shopping centers in Norman are 100 percent occupied and include Carriage Plaza at 2001 W. Main St. and Heritage Plaza at 1951 W. Lindsey St.

Despite low retail vacancy rates, Norman appears to be on a downswing since September of last year, when there was a vacancy rate of just 2 percent. That trend would be in keeping with the last five years - Norman's current retail vacancy rates are much lower than they have been in recent years. In March 2002, the market hit its all-time high of 9 percent vacancy, after inching up since March 2001.

It's all about supply and demand, said Judy Hatfield, president/CEO of Equity Realty.

Corridors including W. Lindsey Street and Ed Noble Parkway, which were once open areas, became the hot spots of the city, she said. People want to be there.

Within Oklahoma City, the retail vacancy rate hovers at 9 percent with average lease rates at $8.90 per square foot.

"Norman has been growing steadily in for the past 30 to 40 years," said Don Wood, executive director of the Norman Economic Development Coalition.

Much of Norman's growth is due to the university, which employs 12,000 people, more than any other business in the city. Norman Regional Hospital ranks second with 2,000 employed.

Norman also showed a low vacancy rate in the office market survey. As of June, the rate of vacancy measured at 7 percent, with an average current asking rate of $13.39 per square foot. Lindsey Square at 1818 W. Lindsey St. had the highest rate of vacancy at 23 percent with 8,993 square feet out of 38,338 square feet of rentable space.

Norman's office market vacancy rate reached its lowest point in March with approximately 25,000 square feet of vacant space. Although it's higher now at roughly 37,000 square feet available, it's still lower than it has been in the past three years. In June 2004, it reached its highest point when more than 60,000 square feet of lease space available was vacant.

Although impressive, Norman's office vacancy rates are not in the same comparison field as Oklahoma City.

"Most of the office buildings in Norman are too small for us to track compared to Oklahoma City," Currin said.

Norman's population is 19 percent of Oklahoma City's. Despite size, Norman can make quite an economic impact. "In looking at all categories, Norman is without question, one of the strongest commercial real estate submarkets in the entire metro area," Currin said. "Norman is a step above Midwest City and it's different than Edmond."

Edmond has plenty of land to grow. Norman is landlocked, which limits new construction and forces tenants to rent wherever is vacant. The university also owns a lot of land and controls its use. With these factors combined, it puts Norman in a unique and dynamic situation, Currin said.

Brandice J. O'Brien reports on real estate, technology, manufacturing, entertainment, tourism and media. You may reach her by phone at 278-2846 or by e-mail at brandice.obrien@journalrecord.com.