OKLAHOMA CITY Market Overview

OKLAHOMA CITY
Market Overview
Market Overview
With a population of approximately
600,000, Oklahoma City is a sprawling
state capital encompassing more than
620 square miles—making it the country’s
third-largest city in terms of area. The City
of Oklahoma City, or OKC, is the seat of
Oklahoma County and is one of the larger
cities in the Great Plains region, as well
as the nation’s 29th largest city in terms
of population.
The Greater Oklahoma City Metro Area
is comprised of 10 counties and more
than 1.3 million people. The area boasts
varied terrain, abundant recreation, and
a plethora of arts and entertainment
venues. The city is often described as an
easy-going patchwork of cosmopolitan
and country. Thanks to a recent citywide
revitalization effort, downtown Oklahoma
City now boasts the nation’s premier
minor-league ballpark—the Chickasaw
Bricktown Ballpark, and the navigable
Bricktown Canal that flows beside choice
restaurants, shops, and cafes in the historic entertainment district. The Bricktown
Entertainment District is the fastest-growing entertainment district in the region
and one of the most popular destinations
in the state. Bricktown is home to dozens
of restaurants, dance clubs, live music
venues, upscale retail shops and offices.
Downtown OKC is also home to the
Myriad Botanical Gardens, the Oklahoma
City National Memorial, and the OKC
Museum of Art. The downtown area is further benefiting from Devon Energy’s new
$750 million headquarters tower, completed in early 2012, bringing nearly 2,200
employees and contractors to the area. In
addition, in 2009, voters approved a $777
million initiative that will bring a new urban
park, convention center, streetcar line,
and other projects to the city, generating
an estimated 25,000 new jobs.
Oklahoma City has earned a number of
recent accolades for its economic strength
and quality of life, including:
The overwhelming popularity of the NBA
Thunder has also had a tremendous
impact on economic development. City
officials estimate the team’s economic
impact at $1.5 million per game and
over $64 million per season. The figure
is sometimes criticized as too low since
it does not include employment at the
arena, restaurants and hotels that can
be attributed to the games. It also does
not calculate the impact of national and
international positive coverage for the city.
US Bureau of Economic Analysis, June 2015
In January 2015, the city’s unemployment
rate was 3.8% - the second lowest rate
among the nation’s 49 largest MSAs.
Oklahoma City regularly posts among
the lowest unemployment rates for large
metro areas.
Simple Moving Labor, March 2015
OKC ranked No. 4 on the “Best City to Move
to in 2015”
Brookings, March 2015
No. 7 in the U.S. for economic growth
Forbes, 2015
OKC made “America’s Fastest-Growing Cities
2015” list
One of the top-five-fastest growing economies
in the nation
The City Observatory, April 2015
OKC’s downtown had the 3rd-highest rate
of employment growth out of the 41 largest
metros in the U.S.
USA Today, April 2015
Number 3 for “Best Cities for Millennials”
WalletHub, April 2015
OKC ranked number three out of the 350
largest metros for “Most Diversified Economy”
Brookings, March 2015
Brookings recently analyzed 300 of the largest
metros in the world and found that Greater
OKC ranks No. 7 in the U.S. for economic
growth
Demographia, March 2015
“Since 1999, the number of Californians
departing the Golden State
for Oklahoma has outnumbered
those going the opposite direction
by more than 21,000…
The influx of Californians
is a sign of Oklahoma’s
growing economic prowess.”
USA Today
OKC ranked No. 13 for most affordable housing market among nine countries reviewed
Standard & Poor’s/Moody, February 2015
OKC’s has received AAA rating for five straight
years
Forbes, January 2015
With a population growth rate of 1.2 percent,
Oklahoma City made “America’s FastestGrowing Cities 2015” list
WalletHub, January 2015
Oklahoma City made the top 10 “Best Cities
for Job Market for 2015” list of 150 biggest
cities in the U.S. reviewed
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OKLAHOMA CITY
Market Overview
Oklahoma City MSA Population
2,000,000
1,500,000
0
1990
2000
Source: Moody’s Analytics, Precis Q4 2014
1,403,200
900,000
2014
2018
1,257,888
950,000
1,336,767
1,000,000
1,095,421
Oklahoma City has seen immense growth over the past decade.
As of 2014, Oklahoma City Metro area’s population is 1.3 million
people. Its population has grown by more than 6% (double the
national average) since the 2010 Census and was ranked in the
top 10 fastest growing cities by CNN Money in 2014. Moody’s
Analytics forecasts that OKC’s population growth will grow by
1.2% annually in the next five years and surpass 1.4 million by
2018. Oklahoma City’s median age is 35.3 years, with more than
23% of residents between the key renter demographic of 20 to 34
years of age.
971,042
Population
2010
Total Employment by Industry
Government
20.5%
Trade, Transportation and Utilities
17.7%
Education and Health Services
14.5%
Professional and Business Services
12.0%
Leisure and Hospitality
11.3%
Manufacturing
5.8%
Financial Activities
5.8%
Construction
4.5%
Other
3.4%
Natural Resources and Mining
3.3%
Information
1.3%
Source: Bureau of Labor Statistics, Current Employment Statistics, 2014 OKC MSA
Cost of Living Index
Cost of Living
250
200
150
100
50
0
Source: Cost of Living, C2ER 2-14 Q4
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OKLAHOMA CITY
Market Overview
Economic Development | New Construction
Downtown Oklahoma City and the Central Business District are in
the midst of an economic revival - one of the largest in the nation.
Downtown has attracted over $5 billion in public and private investment since the original MAPS project. Since 2000, Downtown
Oklahoma City has witnessed:
> Population increase of over 20%, with the daytime population
within a three-mile radius swelling to nearly 200,000.
> Traffic counts exceeding 100,000 daily at I-35 and I-40.
> Property value increase 118% along with more than 900 multifamily units currently under construction as of March 2014.
Of the numerous development and redevelopment projects occurring or completed throughout the City, the most significant
ventures include:
MAPS 3 PROJECTS
In 2009, voters approved a MAPS 3 initiative that will use a penny
sales tax to fund $777 million in additional projects through 2022.
These projects are expected to create 25,000 new, permanent
private-sector jobs. Officials hope that MAPS 3 will spur billions of
dollars in private investments, as its predecessors did. Although
final designs are still to be determined, major components of the
latest MAPS program include the following:
New Convention Center
Streetcar System
Another part of MAPS 3 will be a $130 million downtown streetcar
system and a transit hub connecting buses, the streetcar, and rail
lines. The streetcar system would run for about four miles from
Northwest 13th Street to Reno Avenue and from Broadway to
Robinson Avenues, with a two-mile extension. Estimated completion: 2021.
The $252 million convention center is expected to triple the economic impact of the existing Cox Convention Center. Annual economic impact of the new 470,000 square-foot center is estimated
at $80 million, while a total of 1,100 jobs would be created by the
site, up from the current 400. Estimated completion: 2018.
Downtown Park
The $130 million, 70-acre urban park proposed as part of MAPS
3 will include a playground, walking/biking trails, athletic fields,
amphitheaters, a dog park, restaurants, public art space, and gardens. The park will be bisected by the new I-40, with the sections
linked by a pedestrian skybridge. Estimated completion: 2021.
PROJECT 180
Funded by the tax increment financing district created for Devon
Energy’s project, this $141 million project will upgrade streets,
parks, sidewalks, and public places throughout the downtown
area. Much of the work was completed in 2012 with the entire
project slated for completion in 2015.
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OKLAHOMA CITY
Market Overview
Economic Development | New Construction
continued
GENERAL ELECTRIC
GE has begun construction on a $110 million global energy research center in Oklahoma City. The firm has hired almost half of
the planned 125 engineers and other scientists focused on solving problems facing the oil and natural gas industry. The firm is
officing in temporary offices in Downtown Oklahoma City until the
center is completed mid-2016. GE recently held its 2015 Annual
Shareholder’s Meeting in Oklahoma City and has announced it
was an outstanding success.
OU HEALTH SCIENCES CENTER
The newly constructed Stephenson Cancer Center is a 210,000
square-foot building that is the largest public-private biosciences
initiative in state history, and Oklahoma’s only comprehensive
academic cancer center. The Cancer Center is nationally recognized as a leader in research and patient care.
BOEING
OG&E
A $100 million project encompassing two towers will be developed
on the former Stage Center site. One tower will be the home of
OG&E corporate headquarters while the second will consist of a
luxury hotel and apartments. Estimated completion: 2017.
In 2012, Boeing opened a new $40 million, 320,000 square-foot
facility in Oklahoma City. In 2014, Boeing announced that it would
relocate approximately 900 jobs to Oklahoma City as part of a
company consolidation. The local aviation and aerospace industry directly and indirectly supports over 85,000 jobs and produces
$7.3 billion in goods and services.
ALOFT HOTEL
A new $18 million Aloft hotel has been completed in downtown
OKC; the 140-room hotel opened in April 2014.
OKLAHOMA AMERICAN INDIAN CULTURAL CENTER
Phase two construction of the 250-acre, $135 million, American
Indian Cultural Center and Museum at the southeast corner of
I-40 and I-35 east of downtown is currently underway.
ARINC
This aerospace engineering firm is expanding, adding 115 jobs at
Will Rogers World Airport by 2016. The project will add 300,000
square-feet of ramp space and 250,000 square-feet of hangar,
warehouse shop and office space.
UNIVERSAL WELL SITE SOLUTIONS
Formerly based in Colorado, this firm moved its operations to
Oklahoma City in 2009. From 50 employees initially in Oklahoma
City, the company expects to increase its workforce to 225 by
2014.
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OKLAHOMA CITY
Market Overview
Economic Development | New Construction
continued
PAYCOM
In addition to the firm’s new 90,000 square-foot headquarters
building, another $10.8 million development is under construction
allowing the company to add nearly 700 new jobs over the next
five years. The campus will also allow for future expansions.
OUTLET SHOPPES AT OKLAHOMA CITY
In 2011, Horizon Group opened a new $50 million, 348,000
square-foot factory outlet mall in western Oklahoma City, near
Council Road and Interstate 40, creating 1,000 jobs and being
fully leased. Due to its success, developers approved phase II,
estimated at $1.4 million and 28,000 square feet. Phase II construction was completed in late 2012. New stores added in the
expansion included Ann Taylor Loft, Columbia, Lucky Brand,
Waterford Crystal, and Kenneth Cole. Plans for Phase III are
under development.
499 W SHERIDAN
A new 27-story, 690,000 square-foot office tower is planned
for downtown. Devon Energy has filled its 50-story, 1.9 million
square-foot facility that was constructed in 2012 and has agreed
to prelease some of the space in the new tower.
LINN ENERGY
Houston based, Linn Energy is building a new $20 million office
building in the Memorial Corridor.
HOBBY LOBBY
This firm is nearing completion on a 1 million-square-foot expansion of its OKC headquarters, adding new warehouse and office
space. The expansion added new jobs, bringing the company’s total
employee count to 2,500 locally.
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OKLAHOMA CITY
Market Overview
Economic Development | New Construction continued
THE METROPOLITAN
THE LIFT
MATHIS BROTHERS
TOP GOLF
At 330 units, the Metropolitan is the largest single housing development announcement for Downtown Oklahoma City. The
project will include a large parking garage and 8,000 square-feet
of amenities.
The $16 million, 365,000 square-foot distribution center along I-40
will allow the furniture store to keep pace with its growth of several
brands it operates in the area. The company eventually hopes to
open seven stores in the Tulsa and Oklahoma City metro areas.
The high-end $42 million, 329-unit apartment complex is the
second largest housing development in Midtown. The mixeduse project will combine urban apartment living with commercial
space.
The first location in the state, the 65,000 square-foot, golf-themed
entertainment facility will feature a full-service restaurant, bars,
4,000 square-feet of private event space and a tiered driving
range.
CABELA’S
Construction began in late 2014 on the first location in the state.
180 employees will work at the 80,000 square-foot store that will
include a large mountain replica and wildlife displays.
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OKLAHOMA CITY
Market Overview
Economy | Employment
Oklahoma City’s economy is based on eight major industry clusters: aviation and aerospace; biosciences; energy; healthcare;
technology/manufacturing; professional, business and financial
services and distribution/warehousing.
“Over the past several years Oklahoma City has
shown economic stability and diversification of its
economy. Currently the energy sector accounts
for approximately 3 percent of the Oklahoma City
metro’s total employment, but 9 percent of its total
earnings. The oil and gas industry is expected
to undergo a restructuring in operational and
financial activities that will involve some layoffs
and downsizing. But the economic impact should
be more about capital spending than the longer
term employment fluctuations experienced by the
region in the early 1980s...
Metro area unemployment rates are expected to
tick up slightly in 2015, averaging 4.3 percent for
the year...Industries closely tied to the state’s oil
and gas industry are expected to be challenged
in 2015 while industries more closely aligned
with population and income gains are expected
to benefit from the underlying long term trend
growth... Employment is expected to return to
2014 levels in 2016 as prices improve.”
2015 Greater Oklahoma City Chamber Economic Forecast
“OKC’s economy will expand further in the
short-run, just at a slower pace more in line with
the state and nation. Job growth in the core
industries of mining, manufacturing and services
will remain strong at least through next year, but
risks are weighted to the downside because of
falling oil prices and energy’s broad reach in the
local economy. Over the long-run, Oklahoma City
will remain a slightly above-average performer
thanks to its high quality of life, universities, and
affordable cost structure.
2014 Q4 Precis report, Moody’s Analytics
With OKC home to the operations of numerous energy and related services firms, including Devon Energy, Chesapeake Energy,
Sandridge Energy, American Energy Partners, and Kirkpatrick
Oil, the metro area has benefited from the tremendous growth of
the oil and gas industry. The energy sector’s broad reach in the
economy can be seen across all types of commercial real estate.
Compared to the 1980s, Oklahoma City has a much more diversified economic base. In the 1980’s almost 30 percent of state revenue came from oil production; in 2014, it was less than 6 percent.
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OKLAHOMA CITY
Market Overview
Economy | Employment continued
The area’s flourishing
bioscience industry has
an annual economic
impact of more than
$3.4 billion to the state
economy, according to
the Greater Oklahoma
City Chamber. More
than 44,000 people
are directly employed
in the bioscience industry, with the total
employment (including
indirect jobs) generated by the industry
exceeding 90,000.
Tinker Air Force Base, also known as Oklahoma City Air Logistics
Center (OC-ALC), the metro area’s second largest employer, is
located in the suburb of Midwest City. Tinker AFB is the state’s
largest industrial operation and home to seven major Department
of Defense, Air Force, and Navy activities with critical national
defense missions. The base has an estimated 27,000 military
and civilian employees and is the largest single-site employer in
Oklahoma. Tinker AFB covers 5,033 acres and has 760 buildings,
with over 15.2 million square-feet of space.
Leading employment
sectors include government (20%), trade
transportation (18%),
education and health
(14%) business services (12%). The City is
the seat of government
for the state, as well as
the county, and many
regional federal agency offices are located in Oklahoma City.
Not surprisingly, the area’s corporate presence is impressive,
with companies operating in the area including: AOL, Sprint,
The Hartford and Dell Computers. Devon Energy, Chesapeake
Energy, Hobby Lobby, and Kerr-McGee (now SandRidge Energy)
were all founded and remain headquartered in the greater metro
area.
In 2009, Tinker officially opened a repair and maintenance facility at the former General Motors plant, located on the southwest
section of the base. The 3.8 million-square-foot plant houses the
Tinker Aerospace Complex, containing current 76th Maintenance
Wing operations as well as other Department of Defense missions. Private contractors such as Arinc, Boeing, ShurTech,
Lockheed Martin, Raytheon, Northrop Grumman, and others will
also lease space around the site as needed for military contracts.
Total employment at the former GM site was estimated at 700 in
2010. Williams-Sonoma operates a call center in Oklahoma City
with an employment base of 500; the center employs another 600
to 1,000 workers on a seasonal basis.
OKC’s manufacturing sector employed 35,600 people in April
2013, up nearly 3 percent from a year prior. According to a 2011
report from the State Chamber of Oklahoma, manufacturers will
add a net total of 300,000 new jobs in the state over the next two
decades.
Oklahoma City is known as the “Horse Show Capital of the World”,
and the equine industry is a key economic generator, supporting
51,500 jobs and producing goods and services valued at nearly
$800 million throughout the state. The city is also one of the nation’s largest processing centers for a variety of farm products and
is home to the world’s largest stocker and feeder cattle market.
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OKLAHOMA CITY
Market Overview
Leading Employers
Greater Oklahoma City’s workforce is considered one of the
area’s best assets. In January 2015, the region’s unemployment
rate was 3.8%, One of the lowest rates among the nation’s 49
largest MSAs.
Over the year end in January 2015, the Oklahoma City MSA recorded a job growth rate of 2.5%, equating to the addition of nearly
15,000 new jobs. According to Moody’s Analytics, the metro is
expected to add more than 40,000 new jobs in the next five years.
Two Fortune 500 companies are headquartered in Oklahoma
City: Devon Energy and Chesapeake Energy. While energy firms
are significant employers, only Devon and Chesapeake are in
the top 20 largest employers. Local retail giant, Hobby Lobby,
employes more workers than either of the oil and gas firms. Five
of the largest top 20 employers are in the healthcare industry.
According to the Greater Oklahoma City Chamber of Commerce,
health services, retail trade, leisure and hospitality and construction are expected to be the fastest growing sectors in 2015.
COMPANY
State of Oklahoma
PRODUCT/SERVICE
Government
EMPLOYEES
46,900
Tinker Air Force Base
Military
26,000
OU - Norman Campus
Higher Education
11,900
Aerospace
6,500
FAA Aeronautical Center
INTEGRIS Health*
Health Care
6,000
Wholesale & Retail
5,100
Higher Education
5,000
City of Oklahoma City
Government
4,600
Mercy Health System of OK*
Health Care
4,300
Hobby Lobby Stores Inc*
OU Health Sciences Center
OGE Energy Corp.*
Utility
3,400
Oil & Gas
3,200
Devon Energy Corp*
Oil & Gas
3,200
OU Medical Center
Health Care
3,200
SSM Health Care of Okla., Inc.*
Health Care
3,000
University of Central Oklahoma
Higher Education
2,900
Health Care
2,800
Telecommunications
2,400
Higher Education
2,100
Chesapeake Energy Corp*
Norman Regional Hospital
AT&T
Oklahoma City Community College
Sonic Corp*
LSB Industries, Inc.*
The Boeing Company
Dell
Hertz Corporation
UPS
Great Plains Coca-Cola Bottling
Midwest Regional Medical Center
Retail
2,000
Manufacturing
1,800
Aviation
1,800
Sales & Business Service
1,700
Rental Services
1,700
Transportation
1,550
Manufacturing & Distributing
1,500
Health Care
1,500
SandRidge Energy*
Oil & Gas
1,500
Cox Communications*
Telecommunications
1,400
American Fidelity*
Finance/Insurance
1,300
Farmers Insurance Group
Customer Service
1,300
Johnson Controls
Manufacturing
1,200
Midfirst Bank*
Finance
1,150
Bank of Oklahoma
Finance
1,100
Love's Travel Stops*
Retail
1,100
ATC Drivetrain LLC*
Manufacturing
1,000
Oil & Gas
1,000
Continental Resources*
Deaconess Hospital*
Health Care
1,000
Dolese Bros. Co.*
Manufacturing
1,000
Rose State College
Higher Education
1,000
*Indicates headquarters in metro area
Employee counts subject to change. Source: The Greater Oklahoma City Chamber
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OKLAHOMA CITY
Market Overview
Education
Oklahoma City Public Schools is the state’s largest district with
approximately 41,000 students. It also serves as a major employer, with 4,500 faculty and staff members. The district is one
of the few urban districts in the nation with a growing enrollment,
due largely to the “MAPS for Kids” citywide improvement plan.
Completed in 2012, the initiative was a 10-year, $700 million
construction and renovation program to improve school facilities throughout Oklahoma City’s 24 school districts. The project
included building or renovating 75 school sites, new buses, and
upgrading technology.
In September 2014, the website Find the Best ranked the state of
Oklahoma as the 2nd best place for recent college grads. Median
income, unemployment rates and cost of living contributed to the
state’s high ranking.
The city was also recognized for its community programs, including the Supporting Kids in Independent Living program and the
Leadership Oklahoma City’s Youth in Action council. OKC is also
home to the Oklahoma School of Science and Mathematics,
which educates the state’s most-gifted math and science students. Oklahoma City has a diversified number of well developed
private and parochial schools also.
There are 18 public and private colleges and universities in the
Oklahoma City metro. The University of Oklahoma is one of two
research universities in the state along with Oklahoma State
University (Stillwater, OK).
Oklahoma also has a nationally acclaimed career and technology system, offering programs and services in nearly 400 school
districts across the state. Oklahoma Career Tech is leading the
nation in the development of Career Clusters which help students
identify pathways from secondary school to career and technology education, colleges, graduate schools and the workplace.
Largest Colleges and Universities
Educational Attainment
Oklahoma City MSA - Fall 2014
School
University of Oklahoma (all campuses)
Student Enrollment
Population 25 Yrs and older
30,786
Less than High School Graduate
12.7%
University of Central Oklahoma
12,777
High School/Technical School
27.5%
Oklahoma City Community College
12,380
Associate’s Degree/Some College
31.6%
Bachelor’s Degree or higher
28.2%
Rose State College
8,200
Oklahoma State University, OKC Campus
6,712
Oklahoma City University
3,072
Oklahoma Christian University
2,424
Source: Census, 2011 - 2013 American Community Survey
(3 year estimates) OKC Metro
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OKLAHOMA CITY
Market Overview
Transportation
HIGHWAYS
Oklahoma City is strategically located at the junction of three of
the nation’s major interstates, is equidistant from both coasts and
is located at the center of the I-35 NAFTA corridor. The city boasts
an excellent highway and turnpike system making for easy navigation - commute times average 20 minutes or less with minimal
congestion. MSN.com ranked it the sixth most drivable city in the
United States.
International connections are also readily accessible. The country’s most inland all-weather seaport is located 90 miles east, adding to the area’s potential for logistics and distribution.
TROLLEY
The city recently welcomed a new trolley system, dubbed the
Oklahoma Spirit, which covers a three-mile area and loops
through downtown, with an additional segment linking the state
fairgrounds area with downtown and Bricktown. As mentioned,
part of the MAPS 3 plan calls for a $130 million downtown streetcar service, as well as a transit hub. The streetcar will link major
employers, businesses, attractions and residents in the downtown
area.
AIR
Will Rogers World Airport is the city’s major commercial airport.
The airport is located just a short distance from city center with
easy access to three major Interstate Highways. Six commercial
carriers serve the airport with an average of 75 total daily departures. 22 destinations are served nonstop. In 2014, the airport
served 3.8 million passengers and is a key employment center,
hosting 70 companies that employ nearly 12,000 people.
In addition, Wiley Post Airport is a general aviation airport that
boasts nearly 80,000 flight operations each year. Sundance
Airpark is a privately-owned, public-use facility that operates approximately 7,000 flights annually.
TRAIN
Amtrak service is provided via The Heartland Flyer, which makes
daily runs to Fort Worth, Texas. The train departs from the historic Santa Fe Depot at the front door of Bricktown – Oklahoma
City’s entertainment district. Two major lines provide most of the
rail transportation in the Oklahoma City MSA: Union Pacific and
BNSF Railway. These lines have more than 4,000 miles of track
and connect Oklahoma communities with other U.S. cities, markets and ports.
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