Oklahoma City - TCN Worldwide

Oklahoma City
2015 Mid-Year
Retail Market Summary
TABLE OF CONTENTS
Retail Market Summary
Submarket Map
1-2
3
Quick Hits
4-5
North Submarket
6-7
Northwest Submarket
8-9
South Submarket
10-11
Edmond Submarket
12-13
West-Central Submarket
14-15
Moore / Norman Submarket
16-17
Eastern OK County Submarket
18-19
Retail Sales Summary
20-21
Von Maur
Theconstruction
Outlet Shoppes
at Quail
at Oklahoma
Springs Mall
City
The information contained herein has been obtained from reasonably reliable sources. Price Edwards & Company makes no guarantee, either express or implied, as to the accuracy of such information.
All data contained herein is subject to errors, omissions and changes. Reproduction in whole or in part, without prior written consent is prohibited.
Oklahoma City
2015 Mid-Year Retail Market Summary
THE RETAIL MARKET
Retail is becoming a story of the haves
and the have nots. The overall market
vacancy ticked up to 9.3 percent at midyear from 8.25 percent at year-end. Activity
in newer centers remains strong; overall
vacancy in centers built since 2000 is
right at 3 percent. We continue to see
a shortage of quality space which is
leading to new development. However,
the rest of the market is not as robust. If
you dig into the numbers, you see two
things. First, many older centers have
significant vacancy, most due to either
years of deferred maintenance and/or
being located in an area that is no longer
a prime retail area. Smaller local tenants
often have a problem paying significantly
higher rents than they have in the past.
Their occupancy may, therefore, be limited
somewhat to the older centers which have
a much lower cost basis and can meet the
needs of these locals insofar as rent is
concerned and create a “win-win” situation
for all parties. Second, the numbers show
several large neighborhood centers that
have developed some vacancy due to loss
of anchors, missed deals or ownership
difficulties. Parkway Plaza in Norman is
a good example: this center has 53,000
square feet available as it has lost some
big tenants to University Northpark and
has a TIC ownership structure which limits
their flexibility in doing deals. A number
of centers have similar stories. On our
stand-alone store list, a few big boxes
have become available due to closures,
including four Homeland stores. With all
the excitement at the top of the market,
there is some churning in the mid and
lower-end markets, creating more overall
vacancy and increasing the distance from
top to bottom.
Oil & the Economy
From talking with retailers and seeing
the amount of activity in the market, the
downturn in energy prices has had little
or no effect on the retail market to date.
Perhaps the best indication of national
firms’ view of Oklahoma City is Kite Realty’s
purchase of Belle Isle Station at a 5.4
capitalization rate (see the investment sales
summary on page 21). In addition, the
numbers retailers rely on - income & job
growth, population growth, employment –
all still look good. It’s helped that energy
prices have rebounded but they remain
well-below pre-downturn levels. State
and city tax revenues are down as a result,
OKC TOTAL RETAIL MARKET VACANCY
royalty payments are down. So, while the
numbers currently look good, there is still
reason to pause as we look forward. Since
retail tends to lag changes in the economy,
it becomes a question of how long energy
prices are down. If it’s an extended period,
expect to see some weakness; if prices
continue to rebound, we may see little
long-term effect.
New & Expanding Retailers
The health of the upper end of our market
is illustrated by the quality of new tenants
either entering our market or about to
enter our market. As noted for the last
several reports, Walmart continues to
expand and grow its footprint in Oklahoma
City with three new Sam’s Clubs either
open or under construction, four new
Neighborhood Markets and three new or
planned Supercenters. H & M announced
its first Oklahoma store at Quail Springs
Mall, which continues General Growth’s
revitalization of the mall. Winco, which
announced four stores last year, is moving
forward and should start construction
soon. Uptown Market, Crest, Sprouts
and Natural Grocers are all adding metro
locations. Grocery has been one of the
OKC TOTAL RETAIL MARKET INVENTORY
12%
50
GLA SF
(millions of square feet)
10%
8%
6%
4%
2%
0%
2011
2012
2013
2014
2015
Freestanding SF
40
30
20
10
0
2011
2012
2013
2014
2015
1
OKC TOTAL RETAIL MARKET ABSORPTION
0.8
Survey Footnote:
(millions of square feet)
0.7
Our survey tracks 28.3 million square feet in 242 buildings of
over 25,000 square feet and 13.0 million square feet of standalone buildings for a total market of 41.3 million square feet.
0.6
0.5
0.4
There continues to be a significant number of smaller strip
centers in the market (under 25,000 s.f. in size). We would
estimate there are easily 3.9 million square feet of these
properties in the market.
0.3
0.2
0.1
0.0
2011
2012
2013
2014
most active market sectors, although we do
not see one of the national full-line chains
entering our market in the near term. iFLY
will join Top Golf and Cabella’s at Chisolm
Creek.
Tenants of interest that are reportedly close
to finalizing deals include Costco, REI,
The Fresh Market, Trader Joes, Gander
Mountain, Crate & Barrel, as well as a
number of smaller boutiques. We are on
the radar of a number of other name tenants
as well. This interest combined with our
lack of quality space is what is driving
existing and planned new development.
Development & Re-development
The last few years, retailers and developers
have responded to growing demand by
expanding existing centers, building
stand-alone stores, and, for smaller
tenants, building small lower risk to the
developer strip centers. This trend has
continued. Westgate Marketplace has
added approximately 40,000 square
feet that includes 5 Below, Versona and
Cavenders. Shops at Fox Lake is adding
nearly 30,000 square feet of small shop
space. Winco, as an example, is building
stand-alone stores. And, we are seeing
OKC Retail Market Totals
2015
a significant number of 10,000 to 20,000
square foot strip centers built throughout
the market.
The market has reached a point that this
incremental growth has not kept up with
retailer demand. Consequently, a number
of larger developments are either underway
or planned. Leading the way is Chisolm
Creek. Chisolm Creek has already made
a splash in the market by bringing in
Cabela’s, Top Golf and iFLY. Their first
60,000 square foot multi-tenant building
will be started later this year. This 190 acre
mixed-use development will add to the
retail dominance of the Memorial Corridor.
Other developers are in the planning/preleasing stages of projects in the same area,
including the Shoppes at Quail Springs that
is currently under construction at May and
Memorial. Two or three other significant
Memorial Road developments are also
possibilities.
Westgate Marketplace is expected to start
their south of Interstate 40 development in
the not too distant future. 240 Penn Park is
planning to add 70,000 to 100,000 square
feet to their development anchored by an
expanded Conns. University Northpark
is pre-leasing both the restaurant space
around the new park and phase three of
the larger retail development.
New developments in the works include the
grocery anchored GBT center at Interstate
40 and Czech Hall Road, the Bridges at
Springcreek in Edmond, and Highland Park
Village at NW 178th street and Western.
One of the more interesting is Glimcher’s
addition to the Triangle at 63rd and Grand;
initial plans call for a more dense, walkable,
urban development unlike any other in
Oklahoma City.
It should be noted that retailer demand has
increased rents in the market, particularly
for new developments. Outparcels in
front of big boxes and preferred small
shop space is seeing rent above $30 per
square foot and, with triple net charges
included, nearing $40 per square foot in
some instances. While this helps pull up
rents market-wide, the benefit to many
of the older, established centers has
been limited, particularly those relying on
primarily local tenants.
GLA SF
Vacant SF
Vacant %
28,338,216
2,635,624
9.30
RETAIL SUBMARKET MAP
3
Apple stores are the most profitable re
generating over $5,000/SF in sale
U.S. Real Retail & Food Service Sales $ Billions – Seasonally Adjusted '15
'12
'13
'14
'10
'11
'07
'08
'09
'05
'06
'03
'04
98
99
'00
'01
'02
95
96
97
93
94
92
0
$100
$120
$140
$160
$180
$200
Recession U.S. Real Retail & Food Service Sales
$ Billions – Seasonally Adjusted
$190
$180
$170
$160
$150
'02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15
4
etail stores,
es on average
Oklahoma City
Quick Hits
LOCAL
• Plaza Mayor recently opened its Mercado in
a portion of the former Dillard’s space.
• Inland American is now known as InvenTrust
Properties; it owns Memorial Square and
Rockwell Plaza in Oklahoma City and Tulsa
Hills in Tulsa.
• In the past 12 months, downtown Oklahoma
City has added or is close to adding nearly
190,000 square feet of retail/restaurant tenants, led by the Dust Bowl & Fassler Hall
(40,000 s.f.).
RETAIL
•99% of shoppers
veer right when entering
a store, making just to
the right of the entrance
the prime display area
71%
of retail stores
have fewer than
10 employees
5
2015 Mid-Year Oklahoma City Retail Market Summary
NORTH SUBMARKET
SUBMARKET SUMMARY
The North Oklahoma City submarket is the highest concentration of retail in the City, 6.6 million square feet
of space, and is seeing the first large-scale new development with the 190 acre mixed use Chisolm Creek
and the 91,000 square foot Shoppes at Quail Springs. Submarket vacancy is a low 6.2 percent. Developers
are also exploring at least three other projects along this corridor, further cementing its status as Oklahoma
City’s leading retail corridor. The area around Penn Square Mall, Oklahoma’s leading mall, is probably even
more highly desired among retailers, but there is limited availability of land for development. Glimcher’s
proposed development at 63rd and Grand Blvd. could bring REI and a number of national boutique retailers
to the City in an upscale urban setting.
May Avenue was historically the primary shopping corridor in this submarket; over the past 20 years, retailers
have migrated to Memorial Road and left some vacancy along May Avenue. We’ve begun to see the backfill
of some of the vacancy on the May Avenue retail corridor with Natural Grocer, and the addition of the Uptown
Grocer north of Britton Road, among others. Some centers with significant vacancy, like Quail Plaza, had
deals in place for large tenants that didn’t get done. We view this as temporary and expect many of these
holes to be filled over the second half of the year.
NORTH OKC SUBMARKET
ABSORPTION
(thousands of square feet)
NORTH
150
120
90
60
30
0
-30
2011
2012
2013
2014
2015
NORTH OKC SUBMARKET
VACANCY
8%
7%
6%
5%
4%
3%
2%
1%
0%
6
2011
2012
2013
2014
2015
2015 Mid-Year Oklahoma City Retail Market Summary
NORTH SUBMARKET
North
50 Penn Place
NW 50th St & N Pennsylvania Ave
6900 Place
6900 N May Ave
Belle Isle Station
NW Expressway & N Classen Blvd
Britton Plaza Shopping Center
2648 W Britton Rd
Britton Square
N May Ave & NW Britton Rd
Camelot Square
NW 122nd St & N Pennsylvania Ave
Casady Square
Built/Updated
1973/1985/2000
1981/1991/1992
2000
1955/2000
1983
1984
1953/1983/1995
W Britton Rd & N Pennsylvania Ave
Centennial Plaza
5801 N May Ave
Charter At May
1993
1963/1988/1996
9494 N May Ave
Classen Curve
1984
9600 N May Ave
Colonial Plaza
9225 N May Ave
Country Club Corner
6410 N May Ave
Country Club Plaza
2800 W Country Club Dr
Cross Rock Shops
3521-3561 W Memoral Rd
Fenwick Plaza
16524 N Pennsylvania Ave
French Market Mall
2836 NW 63rd St
Gold's Gym Center
2301 W. Memorial
Golden Court
1121 NW 23rd St
Highland Park Retail Center
W 178th St & N Western Ave
Lakehurst Plaza
8025 N May Ave
Lakeside Shops Shopping Center
7500 N May Ave
Lakewood Shopping Center
2003
1959/1996
1970/1992/2003
2001
2009/2015
1985
1982/2008
2010
2009
1978/1990
2012
1980/2015
1978
2006
1961
NW Expressway & Independence
Nichols Hills Plaza
1963
6501 Avondale Dr
North Penn Plaza
5601 N Pennsylvania Ave
Northpark Mall
12100 N May Ave
Penn Square Mall
1901 NW Expressway
Penn-Hefner Plaza
2121 W Hefner Rd
Quail Plaza
10950 N May Ave
Quail Springs Mall
W Memorial Rd & N Pennsylvania Ave
Quail Springs MarketPlace
W Memorial Rd & N Pennsylvania Ave
Quail Springs Village
13801 N Pennsylvania Ave
Quail Village
1970/71
1971/1981
1960/1988
1973/1977
1965/1989/1991
1980/1999
1998
1983
1983
14101 N May Ave
Shoppes at the Veranda
150th St & N Western Ave
Spring Creek North
12200 N May Ave
The Plaza at Quail Springs
2221 NW 138th St
The Rise
511 NW 23rd St
The Shoppes at North Pointe
W Memorial Rd & N May Ave
The Shops @ Quail Springs
2006
1981
2005
1920/2014
2002
2012
NW 146th & Pennsylvania
The Triangle @ Classen Curve
2009
6001 N Western
Town & Country Shopping Center
12325 N May Ave
Village at Quail Springs
2201 W Memorial Rd
Village Park South
10405 N May Ave
Village Plaza
1501 - 1529 W Britton Rd
Wilshire Village
W Wilshire Blvd & N Western Ave
North Totals
Available
Space
Vacant
Rate 1
49,502
7,091
14.32%
$10.00
$8.00
433,333
4,365
1.01%
$20.00
$28.00
27,340
5,050
18.47%
$8.00
$11.00
27,326
0
0%
$9.50
$0.00
107,799
2,800
2.60%
$15.00
$0.00
158,764
42,927
27.04%
$12.00
$16.00
233,794
880
0.38%
$12.00
$16.00
99,757
6,000
6.01%
$12.00
$15.50
93,970
8,250
8.78%
$0.00
$0.00
59,000
3,040
5.15%
$12.00
$0.00
86,802
44,419
51.17%
$13.50
Rate 2
$16.50
1982/1992
2004
1972
1964/1973/1989
1986
Blanton Properties
Tom Blanton/Laci Jackson
Ravina
Newmark Grubb Levy
Jim Rose/Carl Archiniaco/DannyOjeda
Eric Roberts
2,500
1.77%
$8.00
$0.00
0
0%
$16.00
$0.00
38,436
0
0%
$14.00
$14.00
Medallion Management
Whitney Rainbolt
Westbrook Properties
Gretchen Bybee
CBRE/OKLA
Mark Inman
Hawkins Companies
Ryan Manteuffel
CBRE/OKLA
Ryan Storer
CBRE/OKLA
Stuart Graham
Graystone Properties
David Rush
Pippin Properties
Linette Roberts
24,578
1,350
5.49%
$19.00
$20.00
41,804
2,000
4.78%
$12.00
$12.00
244,724
2,345
0.96%
$0.00
$0.00
66,662
0
0%
$12.00
$18.00
26,000
2,750
10.58%
$12.00
$16.00
42,428
7,200
16.97%
$18.00
$22.00
32,637
0
0%
$11.00
$12.00
68,220
2,750
4.03%
$10.00
$13.00
64,937
0
0%
$0.00
$0.00
$15.00
95,000
10,591
11.15%
$12.00
225,000
4,881
2.17%
$20.00
$23.00
54,272
3,503
6.45%
$0.00
$0.00
Blanton Properties
129,670
29,200
22.52%
$0.00
$0.00
Tom Blanton/Laci Jackson
Ravina
Steve Hetherington
32,000
1,400
4.38%
$0.00
$0.00
202,106
50,506
24.99%
$12.00
$18.00
1,057,000
1,036
0.10%
$0.00
$0.00
69,392
0
0%
$14.00
$14.00
144,335
60,104
41.64%
$12.00
$17.00
1,140,038
51,623
4.53%
$0.00
$0.00
410,613
1,698
0.41%
$20.00
$0.00
26,350
0
0%
$16.00
$20.00
49,845
13,323
26.73%
$18.50
$20.00
29,712
7,313
24.61%
$0.00
$0.00
89,006
4,950
5.56%
$14.00
$12.00
NAI Sullivan
Lee Bollinger
NAI Sullivan Group
David Hartnack / Sam Swanson
Scott Samara,M.D.
Dana
Best Buy
Home Depot
Luby's Cafeteria
Bank of America, Tuesday
Morning
Balliet's, Republic
The Runner
Cafe Pranzo
53,477
Morris Enterprises
Kevyn Colburn
Simon Property Group
Jeff Reynolds
Haydel Associates
Buddy Haydel
Morris Enterprises
Kevyn Colburn
General Growth Mgmt.,Inc.
Kelly Waswo
Bayer Properties
Mary Beyer Lell
JAH Realty, L.P.
Ethan Slavin
Newmark Grubb Levy
John Cohlmia/Louis Almaraz/
Michael Almaraz
Irish Realty
Shannon Foreman
JAH Realty, L.P.
Ethan Slavin
JAH Realty, L.P.
Ethan Slavin
Land Run Commercial
Anna Fresonke
Price Edwards & Company
George Williams/Phillip Mazaheri
Blanton Properties
Tom Blanton/Laci Jackson
Ravina
Blanton Properties
Tom Blanton/Laci Jackson
Ravina
Brady's Properties
Ali Ghaniabadi
Lincoln Property Company
Kim Wah Restaurant
Gourmet Yarn Company
Cox Communications
Casa Perico's
CVS Pharmacy, Walgreens
Red Coyote
141,456
Oxford Group
Full Circle Books
Belle Isle Brewery
Ted's Cafe Escondito
Four Star Fitness
WalMart SuperCenter
Old Navy, Nordstrom Rack
Johnnies' Charcoal Broiler
Wal Mart Neighborhood Market
JAH Realty, LP
Jeff Norman/Ethan Slavin
owner managed
Gabby Villareal
Price Edwards & Company
Karleen Krywucki
CBRE/OKLA
Mark Inman/Stuart Graham
Price Edwards & Company
Susan Brinkley/Ev Ernst/George
Williams
Anchor Tenants
Homeland
Cato
Sprouts
Half Price Books
Fitness Together
Edward Jones, Beau's Wine Bin
ME/CU Credit Union
McAlister's Deli
Allstate
Fenwick Liquor
Bed Bath & Beyond
Staples, Petco
ATT Flagship Store
Gold's Gym
T-Mobile
Rent-A-Center
Louie's
The Sushi Bar
Gulfport Sea Food
Movement Innovations Dance
Blue Seven
Bernina Sewing Ctr, Natural
Grocers
Stork Land & Kids Too
Akin's Health Foods
PetsMart, Big Lots
Super Target, Marshalls
DSW, Golf Galaxy
Conn's
Panera Bread
CK & Company, S.J. Haggard
& Co
NORTH
6901 N May Ave
Mayfair Place
2900 NW 63rd St
Memorial Square
13730 N Pennsylvania
Midland Center
Total Space
Fred Boettcher
2008
5820 NW Grand Blvd
Collonade Shops
Leasing Agent
Newmark Grubb Levy, Beffort
Vicki Knotts
CBRE/OKLA
Ryan Storer/Stuart Graham
CBRE
Dan Shoevlin/Andrew Lehner
Gerald Gamble Co.
Gerald Gamble
Box Real Estate
David Box
Blanton Properties
Laci Jackson Ravina
Price Edwards & Company
Susan Brinkley/Ev Ernst/George
Williams
CBRE/OKLA
Mark Inman
The Boettcher Companies
Starbucks
Koslow's Furs
Bank of The West
B.C. Clark
Rococo's
Apple, Dillards
Macy's
Buy For Less
Beauty World
Old School Bagel
Goodyear Tire
Dillard's
Von Maur
Old Navy, Ross, Michaels
Office Depot, Ulta
RadioShack
Pier 1 Imports
Cafe 7
Coolgreens
105,299
1,500
1.42%
$14.00
$0.00
37,186
9,000
24.20%
$22.00
$18.00
37,684
5,414
14.37%
$15.00
$0.00
90,856
1,595
1.76%
$0.00
$0.00
Perfect Tan, ER Oklahoma
One Lucky Mutt
CVS Pharmacy
Homeland
Hobby Lobby
Dollar Tree
Anytime Fitness
Cox Cable;Interior Gilt
Chase Bank
Jimmy's Egg
Dick's Sporting Goods
66,862
0
0%
$0.00
$0.00
Whole Foods, West Elm
43,491
0
0%
$12.00
$12.00
100,404
0
0%
$0.00
$0.00
42,573
0
0%
$7.00
$10.00
47,580
2,400
5.04%
$8.00
$10.00
27,000
0
0%
$11.00
$12.00
Backwoods
Subway, At the Beach
Gordmans
Best Buy
Relax the Back
Fedex
Westlake Hardware
Dollar General
Dodson Art Gallery
Makeup Bar
6,576,020
405,754
6.17%
Petco
Anthropologie
7
2015 Mid-Year Oklahoma City Retail Market Summary
NORTHWEST SUBMARKET
SUBMARKET SUMMARY
The Northwest Oklahoma City submarket, which saw some improvement in occupancy in 2014, lost most of
that gain in the first half of the year with vacancy declining to 14.6 from 13.4 percent. Most of the additional
vacancy was at Rockwell Plaza, particularly in a back building. Rockwell may be clearing room to reconfigure and expand that area of the center. The overall Northwest submarket has seen limited activity
when compared to the Memorial Road corridor to the north and the Interstate 40 corridor to the south. The
Northwest submarket is one of the most mature areas of the City: much of the retail product is established
neighborhood shopping centers. For many retailers, this market is their second or third choice. This is
reflective of the area demographics and the distressed condition of some of these properties: the northwest
submarket is characterized by established neighborhoods with limited population growth and relatively
unchanged demographics. There is a sizable gap in performance between these older, poorly maintained and
often ill-configured centers and the newer, well-positioned centers; eight centers have a vacancy of over 25
percent. The first significant development in this submarket is taking place at 122nd Street and MacArthur
with Zerby Interests building a 70,000 square feet Sprouts anchored center, Oak Grove.
90
NORTHWEST OKC SUBMARKET
ABSORPTION
20%
NORTHWEST OKC SUBMARKET
VACANCY
8
(thousands of square feet)
NORTHWEST
60
30
15%
0
-30
10%
-60
-90
5%
-120
-150
2011
2012
2013
2014
2015
0%
2011
2012
2013
2014
2015
2015 Mid-Year Oklahoma City Retail Market Summary
NORTHWEST SUBMARKET
Northwest
Built/Updated
122nd & MacArthur
1985
12203 Warwick
2016 NW 39th St
1982
2016 NW 39th St
Brixton Square
1985
7101 NW Expressway
Cornerstone Plaza
NW 39th St & N MacArthur Blvd
Council Crossing
8101 NW Expressway
Courtyard Plaza
4200 NW Expressway
Lakeshore Shops
7930 N MacArthur Blvd
MacArthur Shops
W Britton Rd & N MacArthur Blvd
Market Place OKC
1958/1978/2003
1986/1992/2003
1984
2002
1998
1983
1985
5501 NW Expressway
Market Plaza
1981/1982
7001 NW Expressway
Mayfair Village
1948/1990
Peppertree Square
6444 NW Expressway
Portland Plaza
NW 39th St & N Portland Ave
Quailbrook Plaza
1972
1983/2000
1996/1998
1984
1994
1987
4401 W Memorial Rd
Rock Center
1982
6714 NW Expressway
Rockwell Crossing
1986
12100 N Rockwell Ave
Rockwell Northwest
7000 NW Expressway
Rockwell Plaza
1985/1999
1981/2000
7104 NW Expressway
2000
Springbrook Shopping Center
1968
6207 NW Expressway
2014
NW 50th St & N Meridian Ave
Walnut Village
1986/2000
NW 122nd St & N MacArthur Blvd
Northwest Totals
34,000
3,100
9.12%
$4.00
$10.00
Dollar General
33,408
9,662
28.92%
$8.00
$8.00
Goodwill
122,042
16,229
13.30%
$8.00
$13.00
65,285
7,500
11.49%
$6.50
$8.50
141,112
55,340
39.22%
$12.50
$3.75
38,998
5,900
15.13%
$14.00
$15.00
Panera Bread, Fit
For Her
Party Galaxy
Family Dollar, City
Bites
Ocean Dental
Goodwill
Chelino's
Knockouts Haircuts
GBR Properties
NAI Sullivan Group
David Hartnack
JAH Realty, L.P.
Ethan Slavin
CBRE/OKLA
Ryan Storer/Stuart Graham/
Mark Inman
Oxford Group
Gaby Villarreal
Charles Shadid
Charles Shadid
Price Edwards & Company
Rosha Wood
Newmark Grubb Levy,
Beffort
Louis Almaraz/Michael
Almaraz
CBRE/OKLA
Ryan Storer/Stuart Graham/
Mark Inman
Price Edwards & Company
Susan Brinkley/Ev Ernst/
George Williams
Charles Shadid
Charles Shadid
ORDA Corporation
Gena Hurst
Core Real Estate
Jim Sanders
Newmark Grubb Levy,
Beffort
Jim Rose
JAH Realty, L.P.
Ethan Slavin
Price Edwards & Company
George Williams/Phillip
Mazaheri
Newmark Grubb Levy,
Beffort
John Cohlmia
NAI Sullivan Group
David Hartnack/Sam
Swanson
JAH Realty, L.P.
Ethan Slavin
CBRE/OKLA
CBRE/OKLA
Stuart Graham/Ryan Storer
Newmark Grubb Levy,
Beffort
Louis Almaraz/Michael
Almaraz
Grace Commercial
Newmark Grubb Levy,
Beffort
1960/1994
1995
Core Real Estate
Jim Sanders
NAI Sullivan Group
139,447
22,383
16.05%
$0.00
$0.00
33,140
0
0%
$5.00
$8.00
23,645
5,600
23.68%
$9.00
$0.00
178,854
25,163
14.07%
$12.00
$12.00
Newmark Grubb Levy,
Beffort
Academy Sporting
Goods
Planet Fitness
Freedom Pawn
Al's Bicycles
Farmers Insurance
Spotted Zebra
Bike One, Vatterott
College
Subway
Tuesday Morning,
ALDI
152,726
17,805
11.66%
$6.00
$12.00
174,911
58,886
33.67%
$12.00
$10.00
Michael's
25,740
0
0%
$5.00
$6.00
143,579
25,698
17.90%
$0.00
$0.00
34,640
25,100
72.46%
$7.00
$12.00
7-Eleven
Sunshine Laundry
Family Leisure
TJ Maxx
Cal's Deli
Nailtique
77,171
23,434
30.37%
$8.00
$9.00
Allstate, My Dentist
103,312
2,612
2.53%
$0.00
$0.00
90,389
2,000
2.21%
$15.00
$12.00
AAA of Oklahoma
Locke Supply
Panera Bread
29,000
6,000
20.69%
$10.00
$10.50
H&R Block
30,200
7,700
25.50%
$14.00
$12.00
Express Tag Agency
YMCA
154,944
6,345
4.10%
$20.00
$12.00
414,507
79,157
19.10%
$0.00
$0.00
700,000
11,783
1.68%
$15.00
$20.00
50,000
10,000
20%
$12.00
$12.00
10 Gym Fitness
126,000
13,778
10.93%
$8.00
$8.00
Dollar General
Super Mercado
Moreles
53,088
13,900
26.18%
$15.00
$0.00
Fortune Chinese
34,400
17,400
50.58%
$8.00
$12.00
31,804
7,627
23.98%
$7.00
$9.00
60,433
0
0%
$4.00
$11.00
Westlake Hardware
Steinmart
Mercy Health System
Pizza Hut
David Hartnack
1985
Anchor Tenants
Gentle Dental
Michael Almaraz
6909 W Hefner Rd
Warwick Plaza
Rate 2
Mary R. Grace
12301 N Rockwell Ave
Warr Acres Shops
NW 50th St & N MacArthur Blvd
Warwick Crossing
Rate 1
Mark Inman
Silver Springs Pointe
7640 NW Expressway
Springdale
Vacant
Newmark Grubb Levy,
Beffort
John Cohlmia
CBRE/OKLA
Stuart Graham/Mark Inman/
Ryan Storer
Available
Space
NORTHWEST
NW 50th St & N May Ave
Newport
9120 N MacArthur Blvd
OKC Market Square
8400 NW Expressway
Olympia Plaza
7202 W Hefner Rd
Total Space
Randy Vaillancourt
6401 NW Expressway
Lakeshore Shopping Center
Leasing Agent
John Cohlmia
Hobby Lobby
Hancock Fabrics
Target
Ross Dress for Less,
PetSmart
Wal-Mart
Home Depot
Leslie's Pool Supplies
Goodwill
Big Red Shop
Flexible Fitness
Watch Me Grow
Childcare
Dollar General
Subway, Eden Salon
3,296,775
480,102
14.56%
9
2015 Mid-Year Oklahoma City Retail Market Summary
SOUTH SUBMARKET
SUBMARKET SUMMARY
The South OKC submarket is another market that experienced a rise in vacancy. Vacancy on June 30 was
13.6 percent as compared to 10.6 at year-end, a sizable increase. Digging into the figures shows a general
increase, but a concentration in about 5 centers that either lost an anchor or saw a few move-outs. The 13.6
percent vacancy is consistent with historic levels, and, for now, should not be cause for concern. The South
submarket is comprised of predominantly neighborhood centers and stand-alone buildings. Much attention
has been paid to the I-240 corridor with the Envision 240; currently, an effort is underway to make this corridor
a Business Improvement District which, if adopted, should solidify the area for retail in the long-run. Retailers
along this corridor tend to do quite well which is not always the perception since the corridor is somewhat
fragmented among uses and is not the most shopper friendly area. The northern half of this submarket is
heavily reliant on the Hispanic shopper. Plaza Mayor recently added its Mercado area in a portion of the former
Dillards. Its progress has been slow to date and the project is in need of an anchor. Its too early to judge
its success but still has the potential to transform the east end of this corridor and be the center of Hispanic
retail. 240 Penn Park is pre-leasing a 70,000 square foot addition to the west of its current location; this will
be anchored by an expanded Conn’s store. The planned improvements, incremental growth and Plaza Mayor
should further strengthen the area.
SOUTH OKC SUBMARKET
VACANCY
15%
SOUTH
12%
9%
6%
3%
0%
2011
2012
2013
2014
2015
SOUTH OKC SUBMARKET
ABSORPTION
60
(thousands of square feet)
40
20
0
-20
-40
-60
-80
-100
-120
10
2011
2012
2013
2014
2015
2015 Mid-Year Oklahoma City Retail Market Summary
SOUTH SUBMARKET
South
Built/Updated
Leasing Agent
Total
Space
Rate 2
Anchor Tenants
0%
$18.00
$0.00
Ross, Marshalls
0
0%
$4.00
$0.00
Family Dollar
240 Penn Park
2005
CBRE/OKLA
242,023
0
29th & Kentucky Shops
1970
L & S Real Estate
32,500
1409 W I-240
SW 29th St & S Kentucky Ave
Mark Inman/Stuart Graham
Available
Space
Vacant
Rate 1
Young Shin
PetSmart
New Century Food
74 South Centre
1973/1977/2006
Paul B. Odom Construction
50,000
9,600
19.20%
$14.00
$16.00
At the Beach
89'er Plaza
1984
Lauren Weyhe
30,000
0
0%
$6.00
$7.00
The Vintage Cowgirl
Airline
1999
Charles Shadid
121,368
17,000
14.01%
$3.00
$5.00
Tom's Tires
Price Edwards & Company
107,676
55,928
51.94%
$0.00
$0.00
Charles Shadid
58,249
2,800
4.81%
$5.00
$8.00
SW 74th St & S Pennsylvania Ave
SW 89th St & S Walker Ave
Paul Odom
L
3400 SW 29th St
Almonte Square
6100 S May Ave
89th Street Liquor
El Rodeo Carnecaria
1963
Everest Ernst
Oklahoma Metropolitan
Library
Family Dollar, Planet Fitness
Brookwood North I & II
1998
Brookwood Shopping Center
1979/2012
Precor Ruffin
80,615
26,926
33.40%
$9.00
$12.00
Centre 8400
1984
Precor Ruffin, LLC
29,355
1,560
5.31%
$9.00
$9.00
Chatenay Square
2000
PB Odom, III
114,115
2,000
1.75%
$16.50
$0.00
Country Park Shopping Center
1978
Jireh Properties
24,360
0
0%
$6.00
$6.00
Crest Center
2010
Newmark Grubb Levy, Beffort
96,000
2,700
2.81%
$17.50
$20.00
Crest Foods
Crossroads Shopping Center
1987
Precor Ruffin
31,282
30,000
95.90%
$10.00
$0.00
Concentra Medical Ctr
Economy Square
1963/98
Newmark Grubb Levy, Beffort
203,451
2,800
1.38%
$18.00
$20.00
Big Lots
Grant Square
1958/1991/1992
Price Edwards & Company
103,810
9,690
9.33%
$8.00
$5.00
Family Dollar
Newmark Grubb Levy, Beffort
117,251
13,323
11.36%
$18.50
$20.00
Westlake Hardware
Blanton Properties
50,000
30,000
60%
$6.00
$8.00
Rent-A-Center
Newmark Grubb Levy, Beffort
27,120
1,200
4.42%
$8.00
$8.00
Pro Nails
Lightning Creek Complex
48,005
2,700
5.62%
$8.00
$0.00
Costume Shop, Allstate
Haydel Associates
38,000
0
0%
$5.00
$5.00
Paul B. Odom Construction
49,003
8,000
16.33%
$16.50
$0.00
Pizza Hut, Jump Zone
JAH Realty, L.P.
69,488
15,000
21.59%
$12.00
$7.00
Buy For Less Super Mercardo
Zerby Interests
157,663
15,055
9.55%
$8.00
$17.00
Langston's Western Wear
Newmark Grubb Levy, Beffort
36,000
8,000
22.22%
$12.00
$17.00
South Park
86,848
17,369
20%
$0.00
$0.00
Messiah Church
Quan Minh Nguyen
90,000
12,575
13.97%
$7.00
$12.00
Family Dollar
Buy For less
SW 89th St & S Western Ave
SW 89th St & S Western Ave
8400 S Western Ave
SW 104th St & Pennsylvania Ave
5906 S Agnew Ave
3000 SW 104th
7100 S. I-35 Service Rd.
SW 29th St & S May Ave
SW 44th St & S Pennsylvania Ave
Rick Pritchett
Rick Pritchett
PB Odom, III
Jess Hwang
John Cohlmia
Rick Pritchett
Michael Almaraz/Louis Almaraz
Susan Brinkley/Ev Ernst/George
Williams
Hillcrest Shopping Center
1971
I-240 Plaza
1988
Lightning Creek
1985
Mayridge Shopping Center
1956
Palagio Shops
2005
Reding Shopping Center
1972
Shields Plaza
1972/85/92/2005/2011
South Meridian Plaza
1983
South Park
1975
South Penn Plaza
1984
Southeast Plaza
1964
HGM Inv.
185,266
13,300
7.18%
$4.29
$4.50
Southern Hills
1964/1989/1990
CBRE/OKLA
202,247
30,016
14.84%
$9.00
$21.00
Southwestern Plaza
1962/87
Coldwell Banker Commercial
127,406
17,068
13.40%
$7.00
$0.00
Stonebriar Shopping Center
2005
Brady Properties
30,000
1,300
4.33%
$12.00
$0.00
2100 SW 59th St
7800 S Western
8100 S Western Ave
SW 44th St & May Ave
SW 104th St & S Western Ave
Grand Blvd & S Western Ave
SW 74th & S Shields Blvd
1025 S Meridian Ave
4500 S May Ave
1620 SW 89th St
SE 44th St & S High Ave
SW 74th St & S Pennsylvania Ave
SW 59th St & S Western Ave
13316 S Western Ave
Laci Jackson Ravina
Carl Archiniaco/Jim Rose
Debra Gutierrez
Buddy Haydel
Paul Odom III
Ethan Slavin
Michael Rapella
Michael Almaraz/Jim Rose
Henry
Russell Hunt, Jr.
Ryan Storer/Stuart Graham
Jack James/Jerry Hocker
Planet Fitness
Goodwill
H&R Block
Citi Financial
Homeland
Panera Bread
Value Thrift
Cox Cable
Walgreens, Griders Food
Ali Ghaniabadi
Tuesday Morning
Jackson Hewitt
State Farm, Jewel Box
Dollar General
El Chico
Burlington, Fallas
Waffle House
State Farm
Family Dollar
Northern Tool
Joe's Crab Shack
Cocina De Mino Restaurant
Family Dollar
Studio Art Photography
Allied Medical, Adams
Chiropractic
Summit Pointe Plaza
2008
Equity Commercial Realty
30,414
2,400
7.89%
$15.75
$0.00
SW 119th Street Marketplace
2009
Price Edwards & Company
28,676
6,000
20.92%
$14.00
$14.00
Lemon Grass
Towne South Center
2004/2005/2010
Price Edwards & Company
130,000
34,461
26.51%
$15.00
$15.00
Heartland Dental
Walker Square
1983
Precor Ruffin
100,430
34,461
34.31%
$9.00
$14.00
El Mariachi Super Marcado
Walnut Square
1985
Price Edwards & Company
316,351
19,533
6.17%
$12.00
$14.00
Big Lots, Hobby Lobby
CBRE/OKLA
104,000
21,335
20.51%
$6.00
$10.00
Taste of China
Brady Properties
79,500
3,325
4.18%
$12.00
$12.00
Westminster Executive Suite
3,428,472
467,425
13.63%
SW 89th St & S Western Ave
801 SW 119th St
SW 74th St & S Walker Ave
SW 59th St & S Walker Ave
2209 SW 74th St
Westernview Center
1958/78
Westminster Village
1986
7107 S Western Ave
10601 S Western Ave
South Totals
Judy Hatfield
Susan Brinklety
George Williams/Phillip Mazaheri
Rick Pritchett
Susan Brinkley/Ev Ernst/George
Williams
Ryan Storer
SOUTH
1985
Jim Rose
Chelino's Restaurant
Aaron Rents
Greenway Plaza
SW 119th St & S Western Ave
China Wok Restaurant
Louie's
Papa Murphys
Chuck E Cheese
Superior Loan
Conn's
Dollar General
Ali Ghaniabadi
11
2015 Mid-Year Oklahoma City Retail Market Summary
EDMOND SUBMARKET
SUBMARKET SUMMARY
EDMOND
The Edmond market saw little change in vacancy during the first half of the year, ending June at 8.9 percent.
Edmond Marketplace, near the end of their renovation, has accounted for nearly 3 percent of the overall
market vacancy. They have secured Natural Grocers as an anchor and are in the process of leasing the
small-shop space; as a result, market vacancy should improve over the remainder of the year. With the market
as tight as it is, several developers are working on new projects, including the Bridges at Springcreek, the
addition of small shop space at Shops at Fox Lake, and the hotel/convention center anchored development
at Interstate 35 and Covell being done by Raptor. Edmond is not typically the first choice of most retailers
but virtually all multi-store retailers want to be in the market. Edmond’s demographics, particularly incomes
and disposable spending, lead all Oklahoma City submarkets, making it very attractive for retailers. National
retail is moving to Interstate locations; it will be interesting to see if Interstate 35 in Edmond can become one
of these high growth retail nodes or if its too close to the Memorial Road corridor.
EDMOND SUBMARKET
ABSORPTION
(thousands of square feet)
120
100
80
60
40
20
0
2011
2012
2013
2014
2015
EDMOND SUBMARKET
VACANCY
15%
12%
9%
6%
3%
0%
12
2011
2012
2013
2014
2015
2015 Mid-Year Oklahoma City Retail Market Summary
EDMOND SUBMARKET
Edmond
33rd & Boulevard
E 33rd St & S Boulevard St
Alta Mesa
301 S Bryant Ave
Berkshire Plaza
W 15th St & S Broadway
Boulevard Village
3404-3456 S Boulevard St
Broadway South
3320 S Broadway
Broadway Square
3601 S Broadway
Bryant Square
Leasing Agent
1982
Lee Segal
Lee Segal
JAH Realty, L.P.
Ethan Slavin
Foraker Co
Jeremy Foraker
Irish Realty
Misty Doney
NAI Sulivan Group
Nicole Mayes
Land Run Commercial
Anna Fresonke
CBRE/OKLA
Mark Inman/Stuart
Graham
Newmark Grubb Levy
Beffort
Carl Archiniaco/Jim
Rose
Land Run Commercial
Anna Fresonke
Price Edwards &
Company
Ev Ernst/George
Williams
JAH Realty, L.P.
Ethan Slavin
CBRE/OKLA
Mark Inman/Stuart
Graham/Ryan Storer
Price Edwards &
Company
Susan Brinkley/Ev
Ernst/George Williams
Sooner Investment
Brad Goodwin
Price Edwards &
Company
Susan Brinkley
Matrix
David Lide
Newmark Grubb Levy,
Beffort
Carl Archiniaco/Jim
Rose
Newmark Grubb Levy,
Beffort
Jim Rose
Midcon Property
Management
Greg Blakely
Coury Properties
Sam Coury
Wiggin Properties
Mote Nickel
Price Edwards &
Company
Susan Brinkley
Key Investments
2008
2002
1985
1977
1968/1994
1973/1992
E 2nd St& N Bryant Ave
Danforth Plaza
2003
2000 W Danforth Rd
Danforth Square
W Danforth Rd & S Kelly Ave
1999
Edmond Crossing
1995
24 E 33rd St
Edmond Exchange
3233 S Broadway
Edmond Market Place
2003
3301 S Boulevard
Edmond Plaza
1964/1989/2005
E 15th St & Broadway Ext.
Edmond Trails
289 S Santa Fe Ave
2007
Homestead Center
2003
W Danforth Rd & N Santa Fe Ave
Kelly Centre Shopping Center
610 S Kelly Ave
2003
Kelly Plaza
1984
W Edmond Rd & S Kelly Ave
Kickingbird Square
1983/88
1323 W Danforth Rd
Market Depot
3409 S. Broadway
North Oaks
821 W Danforth Rd
Oak Brook
2113 W Edmond Rd
1965
1983/1989
1982/1992/2015
Oxford Pointe Shops
1986
E 2nd St & S Bryant Ave
Pebble Creek
W Danforth Rd & N Santa Fe Ave
2001
Shoppes On Broadway
2008
E 33rd St & S Broadway
Signal Shops LLC
1700 S Kelly Ave
Spring Creek Plaza
1986
2000
E 15th St & S Bryant Ave
Spring Creek Village of Edmond
2007
E 15th St & S Bryant Ave
University Plaza 3
E 2nd St & S Bryant Ave
2000
University Village II
2000
2011
E 2nd St & S Bryant Ave
Uptown Grocery Center
1230 W. Covell
Village Center Plaza
Price Edwards &
Company
Susan Brinkley/Everest
Ernst/George Williams
Fotis Bargeliotes
Fotis Bargeliotes
Ward Construction
Amanda Ward, Kent
Ward
Newmark Grubb Levy,
Beffort
Michael Almaraz/Louis
Almaraz
Sooner Investment
Brad Goodwin
Total
Space
Available
Space
Vacant
Rate 1
Rate 2
Anchor Tenants
0
0%
$7.00
$0.00
30,908
1,550
5.01%
$26.00
$0.00
35,612
1,800
5.05%
$12.00
$15.00
36,604
7,122
19.46%
$0.00
$0.00
61,524
3,000
4.88%
$15.00
$0.00
91,055
4,597
5.05%
$12.00
$14.50
278,198
19,787
7.11%
$0.00
$0.00
Mardel's
Family Dollar
Qdoba, Edward Jones
Panda Express
Office Depot
Nhinja Sushi & Wok
Pizza Hut
McBride Clinic
Edmond Music
Courtyard Antiques
City Bites
Duncan Bros Salon
Bed Bath & Beyond
49,400
Steinmart
30,282
7,996
26.41%
$10.00
$12.00
108,000
2,400
2.22%
$14.00
$0.00
Twid's
Star Steps
151,664
30,713
20.25%
$12.00
$16.00
Homeland
71,218
11,030
15.49%
$0.00
$0.00
96,974
52,848
54.50%
$0.00
$0.00
TJ Maxx
Edmond Totals
Natural Grocers
158,373
1,150
0.73%
$8.00
$14.00
25,215
1,500
5.95%
$14.00
$12.00
Westlake Hardware
YMCA of Edmond
Spinal Wellness Center
39,000
0
0%
$14.00
$0.00
Anytime Fitness
43,769
7,000
15.99%
$12.00
$12.00
Buffalo Wild Wings
Dance Makers
Kim Massay Dance Studio
87,503
9,839
11.24%
$10.50
$12.00
Big Lots, Staples
Colortyme
Thrift Elite Store
110,000
0
0%
$14.00
$0.00
Regal Cinema
Interurban
82,325
0
0%
$12.00
$18.00
70,672
12,000
16.98%
$12.00
$12.00
43,006
12,230
28.44%
$12.50
$0.00
Alfredo
Westlake Hardware
Dollar General
Homeland
26,600
0
0%
$10.50
$12.00
The Archives
107,944
0
0%
$18.00
$0.00
The Vision Center
Kohl's, LA Fitness
Dollar Tree
160,000
7,550
4.72%
$18.00
$22.00
Hobby Lobby
35,000
0
0%
$9.00
$10.00
62,000
4,900
7.90%
$25.00
$28.00
Physician's PM
Daylight Donuts
Talbots, Jos. A Bank
Charleston's
IO Metro
Chico's, Panera Bread
72,273
11,823
16.36%
$22.00
$28.00
Legacy Bank, Starbucks
Louie's, Lucca
10,200
2.55%
$16.00
$18.00
Sooner Investment
76,500
12,826
16.77%
$16.00
$22.00
Brad Goodwin
Esperanza Real Estate
Investments
Susan Binkoski
73,350
7,500
10.22%
$21.00
$0.00
Target Super Center
Lowe's
Wal Mart Neighborhood
Market
Pei Wei, AT&T
Uptown Grocery
Juice Blendz Cafe
27,656
2,000
7.23%
$20.00
$17.00
31,200
2,400
7.69%
$0.00
$0.00
2,773,825
245,701
8.86%
805 - 755 W. Covell
Willow Creek
E 2nd St & N Santa Fe Ave
On the Border
Traditions, Delta Cafe
400,000
2008
Payless Shoe Source
At the Beach
EDMOND
Built/Updated
Pampered Pets
Old School Bagel
1985
Coury Properties
Tina Newton
Edward Jones
Family Dentistry
13
2015 Mid-Year Oklahoma City Retail Market Summary
WEST–CENTRAL SUBMARKET
SUBMARKET SUMMARY
The West Central submarket vacancy ended mid-year at 8.0 percent vacancy up from 6.7 percent. About
a third of the increase was vacancy at Chisholm; the rest was a general increase in the older centers across
the market. As with much of the rest of the submarkets, the newer properties in the area are doing well
with a continued focus on Interstate 40. Westgate added a little over 40,000 square feet of space that was
already leased to Cavenders, Versona and 5 Below, bringing the development to nearly 1 million square feet.
Westgate has commitments in place to expand to the south side of Interstate 40 although timing is uncertain.
Westgate Marketplace, Yukon Village, and West End Pointe and the Outlet Shoppes of Oklahoma comprise
nearly half the total product in the submarket and an even higher percentage of sales. The corridor draws
not only from the Interstate 40 traffic but from a large swath of homes north of Interstate 40 that have limited
access to retail, particularly new retail. Incomes of the area aren’t great, but density is high. GBT’s on-again,
off-again development at Interstate 40 and Czech Hall Road appears to be moving forward.
WEST–CENTRAL
The Interstate 40 and Portland area, home to 34 stores, containing over 2.0 million square feet that specializes
in furniture and accessories, remains the hub of furniture sales for the City. Mathis Brothers is finishing up
the construction of a new warehouse/distribution center which will allow it to remodel and expand its flagship
store at the corner of Interstate 44 & Interstate 40.
10%
WEST−CENTRAL SUBMARKET
VACANCY
8%
6%
4%
2%
0%
(thousands of square feet)
500
2012
2013
2014
2015
WEST−CENTRAL SUBMARKET
ABSORPTION
400
300
200
100
0
-100
14
2011
2011
2012
2013
2014
2015
2015 Mid-Year Oklahoma City Retail Market Summary
WEST–CENTRAL SUBMARKET
West-Central
36th & May Center
SW 36th St & S May Ave
Ann Arbor Terrace
4913 NW 23 St
Chisholm
I-40 & Garth Brooks Blvd
DeVille Shopping Center
2408 N. Council Road
Glen Oaks
NW 23rd St & N Rockwell Ave
Indiana Center
1708 N Indiana Ave
MacArthur Court
Built/Updated
1986
1971
1979/1982
1962/92/94
1968/98
2002
1985
3804 N MacArthur Blvd
MacArthur Park
2300 N MacArthur Blvd
1997
Meridian Plaza
1959
4546 NW 16th St
Morgan Creek Plaza
1701 S Morgan Rd
1988
Mustang Shopping Center
2004
1983
1974
2010
1994
1970/2012
1958/1987
1994
1965
1974/1994
1958/1991
NW 10th St & N Meridian Ave
The Plaza Shoppes of Yukon
1986/2000
915-951 S Cornwell Dr
Walnut Creek
1110 N MacArthur Blvd
1974
West End Pointe
2001
I-40 & Garth Brooks Blvd
West Pointe Shoppes
700 S Mustang Rd
Westgate Marketplace
2006
2000/2014
I-40 & S MacArthur Blvd
1964
NW 10th St & N Rockwell Ave
Westpoint Plaza
2000
320 S Mustang Rd
Windsor Hills
1982
1960/1998
4601 NW 23rd St
Windsor Park
2500 N Meridian Ave
Yukon Hills
S Cornwell Dr & E Vandament
Ave
Yukon Shopping Center
I-40 & Garth Brooks Blvd
Yukon Village
I-40 & Garth Brooks Blvd
West-Central Totals
Vacant
Rate 1
Rate 2
Anchor Tenants
0%
$9.00
$0.00
Pole Position Raceway
Feria Latina Super Market
Ultimate Thrift Store
Planet Fitness, Hibbet Sports
Tuesday Morning
Buy For Less
Heart & Hand Thrift
Westlake Hardware
Anytime Fitness
Discount Dollar Store
Bad Granny's
B.D. Eddie Enterprises
Terry McGuire
97,500
0
30,000
8,000
26.67%
$6.00
$0.00
CBRE/OKLA
Ryan Storer/Stuart Graham
227,630
60,950
26.78%
$5.00
$10.00
125,407
24,004
19.14%
$3.00
$4.00
JAH Realty, L.P.
Ethan Slavin
49,161
8,220
16.72%
$18.00
$6.00
26,000
0
0%
$5.00
$9.00
51,198
29,900
58.40%
$12.50
$13.50
55,506
0
0%
$5.00
$8.00
Community Thrift Store
Queen of Sheba Restaurant
92,353
15,220
16.48%
$6.00
$0.00
James Lighting
39,530
4,620
11.69%
$8.64
$10.05
Dollar General
Salon 152
35,846
0
0%
$16.00
$0.00
CATO
106,850
2,050
1.92%
$7.00
$7.00
82,730
10,000
12.09%
$8.00
$4.00
406,835
0
0%
$0.00
$0.00
133,356
3,500
2.62%
$10.00
$0.00
26,892
6,400
23.80%
$4.00
$8.00
Ingrid's Pantry
38,000
0
0%
$4.00
$0.00
25,308
3,000
11.85%
$3.50
$0.00
Sam's Wholesale Liquor
OK Family Thrift
Samaritan Services
40,736
0
0%
$14.00
$16.00
CVS
88,851
15,641
17.60%
$7.00
$10.00
Tractor Supply
33,100
17,200
51.96%
$8.00
$9.00
Beauty World
32,600
9,600
29.45%
$10.00
$11.00
Tony’s Pizzeria
52,822
10,400
19.69%
$3.00
$4.00
522,500
0
0%
$22.00
$12.00
Newmark Grubb Levy,
Beffort
Louis Almaraz/Michael
Almaraz
Charles Shadid
Charles Shadid
Newmark Grubb Levy,
Beffort
Jim Rose/Michael Almaraz
Westbrook Properties
Gretchen Bybee
Schostak Brothers &
Company
Rebecca Dragin
LandRun Commercial
Anna Fresonke
National Properties
Ray Wright
Horizon Group
Mall Manager
CBRE/OKLA
Charles Shadid
Charles Shadid
Charles Johnson, DDS
Chuck Johnson
Harry
Pro Realty
Greg Downs
Price Edwards & Company
Susan Brinkley/Ev Ernst/
George Williams
Price Edwards & Co
Susan Brinkley/Everest
Ernst/George Williams
Ferguson Company
Jim Ferguson/Lee Spivey/
Debbie Servati
Charles Shadid
Charles Shadid
McGee Commercial Real
Estate
Chris Reed
NAI Sulivan Group
David Hartnack
Zerby Interests
1982
1975
Baker First Commercial Real
Estate
Lori Petit
NAI Sullivan Group
David Hartnack/Sam
Swanson
Charles Shadid
Charles Shadid
Arc Real Estate Investor
Solutions
Sam Vinall
Newmark Grubb Levy,
Beffort
Jim Rose
JAH Realty, L.P.
2005
2009
Dollar Tree
Dollar General
Factory Connection
Locke Supply
Nike, Brooks Brothers
Coach Outlet, Anne Taylor Loft
Wal Mart Neighborhood Market
Dollar Tree, CitiTrends, Westlake
Salvation Army
Turtle Creek Wine
Thermo Roll Shutters
Lowe's, Staples
Kohl's, Gold's Gym
Ultimate Vision
SuperCuts, All American Pizza
Wal Mart, Panera Bread, Home
Depot
Best Buy, Ulta, Dick's Sporting
Goods
27,004
0
0%
$13.00
$15.00
900,500
36,000
4%
$0.00
$0.00
93,270
0
0%
$3.90
$3.90
Family Dollar
25,680
4,400
17.13%
$10.00
$12.00
Cabinet Outlet
Subway
160,000
69,700
43.56%
$4.00
$6.00
Oriental Imports
McSalty's Pizza
256,250
9,200
3.59%
$5.00
$13.00
Crest Foods, Cato
26,000
1,215
4.67%
$10.00
$11.00
Ci Ci's Pizza
$8.00
SuperCuts
Dollar General
Hunan Express
Fitness 19, DD's Discount
125,465
5,173
4.12%
$15.00
Ethan Slavin
Schostak Brothers &
Company
Rebecca Dragin
Chase Properties
Brendon Ruth
Jersey Mikes
Red River Credit
Michael Rapella
Westoaks Village
Will Rogers
3000 N Portland Ave
Available
Space
Ryan Storer
101 N Mustang Rd
Ten-M
Total
Space
WEST–CENTRAL
216 N Mustang Mall Terr
Mustang Trade Center
Hwy 152 & S Mustang Rd.
Old Mill
301 Elm Ave
Outlet Shops of Oklahoma
NE C of 1-40 & Council Rd
Penn Crossing
NW 23rd St & N Pennsylvania
Ave
Plaza DeVille
2409 N Council Road
Portland Square
NW 23rd St & N Portland Ave
Rockglen Retail Center
1500 N Rockwell Ave
Shartel Plaza
5225 N Shartel Ave
Silver City Town Center
Leasing Agent
Buy For Less
211,500
1,200
0.57%
332,571
9,557
2.87%
4,578,951
365,150
7.98%
$14.00
$0.00
$16.00
Dollar Tree
$0.00
Cato
Target, Hobby Lobby
Big Lots, Petsmart
15
2015 Mid-Year Oklahoma City Retail Market Summary
MOORE–NORMAN SUBMARKET
SUBMARKET SUMMARY
The Moore-Norman market saw a marked increase in vacancy during the first six months of the year, ending
June at 7.7 percent, up from 5.1 percent at the end of 2014. As you look at the numbers, about half the
increase is attributable to a general increase in vacancy across the market. The other half is holes in centers
like Parkway Plaza which is 375,000 square feet that is now 14 percent vacant. University North Park has
also experience some modest vacancy as a few of the first generation tenants have vacated. We see most
of the activity in this market as normal market dynamics; the submarket remains strong with the Fritt’s Farm
Market area continuing to be a draw and the third phase of University North Park being marketed. Overall,
this submarket is a highly desirable location for retailers – incomes are good and housing density is high.
The strong performance should continue.
8%
MOORE−NORMAN SUBMARKET
VACANCY
200
7%
(thousands of square feet)
150
6%
5%
MOORE–NORMAN
4%
16
3%
2%
100
50
0
-50
-100
1%
0%
MOORE−NORMAN SUBMARKET
ABSORPTION
2011
2012
2013
2014
2015
-150
2011
2012
2013
2014
2015
2015 Mid-Year Oklahoma City Retail Market Summary
MOORE–NORMAN SUBMARKET
Moore-Norman
550 24th Ave NW
Built/Updated
Leasing Agent
1984/2011
Equity Commercial
Realty
Judy Hatfield
Price Edwards &
Company
Rosha Wood
Equity Commercial
Realty
Gayla Artman
Home Creations
Mo
Price Edwards &
Company
Rosha Wood
Equity Commercial
Realty, LLC
Judy Hatfield
Gus Gianos Family
Partnership
Peter Gianos
Heather O'Connell
Heather O'Connell
CBRE/OKLA
Ryan Storer/Stuart
Graham
550 24th Ave NW
Alameda Square
1984
12th Ave SE & E Alameda St
Anatole
1985
12th Ave SE & E Alameda St
Broadway Plaza
2200 N Broadway St
2004
Brookhaven Village
1985
36th Ave NW & W Robinson St
Campus Corner Shops
1911/1993
301 W Boyd St
Carriage Plaza
2001 W Main St
Center on Main
500 Main St
Colonial Estates
1983
1965
Ren. 1988
12th Ave SE & E Lindsey St
Total
Space
Available
Space
Vacant
Rate 1
Rate 2
Anchor Tenants
31,558
3,217
10.19%
$13.00
$13.00
Sooner Bowler Center
93,858
12,408
13.22%
$14.00
$10.00
Gold's Gym
64,555
13,278
20.57%
$14.00
$0.00
Harbor Freight Tools
31,588
1,200
3.80%
$14.00
$14.00
Home Creation
Remax/Elite
Dollar Tree
153,277
21,200
13.83%
$0.00
$0.00
Chico's, White House
Black Market
The Health Club, The Loft
225,000
4,200
1.87%
$16.00
$18.00
747, CVS
25,500
0
0%
$0.00
$0.00
The Webb
107,000
2,250
2.10%
$0.00
$0.00
104,225
31,325
30.06%
$9.00
$0.00
Louie's, Lucca
Cayman's
Sprouts
Firestone
Buy for Less
Dollar General
Cleveland County Health
Dept. (shadow tenant)
Dollar General
Subway
Athletic Loft
Home
Depot,Hemisphere's
Target; Dick's Sporting
Goods
Homeland, Ace Hardware
East Moore Shopping Center
2006
Grace Commercial
24,484
1,080
4.41%
$9.00
$9.00
406 S Eastern Ave
Empire Plaza
3040- 3058 Classen Blvd
2006
Mary Grace
Dillard Group
Scott Heiple
30,000
2,980
9.93%
$13.00
$13.00
2006/2012
TBP LLC Development
453,550
0
0%
$24.00
$26.00
93,000
5,475
5.89%
$13.00
$15.00
127,600
980
0.77%
$0.00
$0.00
30,359
30,359
106.42%
$20.00
$20.00
21,000
0
0%
$0.00
$0.00
Advance America Cash
Armstrong McCall
33,753
0
0%
$9.00
$13.50
Play It Again Sports
Fritts Farm
SW 19th Street & Telephone Rd
Heisman Square
Terry Fritts
1999
12th Ave SE & E Alameda St
1964
2014
480 24th NW
Malibu Shopping Center
824 NW 12th St
2006
Merkle Creek
1985
2203 W Main St
Moore Towne Center
I-35 & SW 19th St
New City Center
605 N Moore Ave.
Normandy Creek
2200 W Main St
North Park Center
1024 N Flood
Parkway Plaza
Gayla Artman
Riverwalk Plaza
35,000
1,800
5.14%
$17.50
$0.00
1963/1998
Precor Ruffin, LLC
181,170
25,383
14.01%
$9.00
$15.00
107,366
10,000
9.31%
$12.00
$14.00
37,000
18,000
48.65%
$8.00
$10.00
375,000
52,973
14.13%
$10.00
$19.00
Barnes & Noble
152,720
3,960
2.59%
$18.00
$0.00
Maurice's
Midwest Regional
Hospital
Integris Physical Therapy
Alfredo's
1974
1960
1996
2000
2000
2006
2713 S I-35 Service Rd
Robinson Crossing
1300 N Interstate Dr
Shops at Moore Power Center
1986/1989
2007/2014
2650 S I-35 Rd
Silver Leaf
NE 12th St & N Eastern Ave
Sooner Mall
1985
1976/1988/1999
I-35 & W Main St
Sooner Shopping Center
NW 5th St & N Broadway St
1966
Sooner West Plaza
1981
36th Ave SW & W Main St
Stubbeman Village
Elm Ave & Elmwood Dr
The Main Center
24th & Main St
University Town Center
1972
2005
2008
1500 24th Ave NW
West Port Shopping Center
1200 N Santa Fe Ave
Moore-Norman Totals
World Acceptance
Corporation
McAlester's
Mazzios Pizza
Aarons, Supermercados
Morelos
Family Dollar
Hastings Books
Party Galaxy
NAI Sullivan Group
David Hartnack
I-35 & SW 19th St
2109-2139 Riverwalk Dr
Riverwalk Shops
Homeland
Hancock Fabric
In Lease-Up
2005
520 - 700 Ed Noble Parkway
Riverwalk Centre
At the Beach
1980
Rick Pritchett
Raptor Properties
Heidi Vanlandingham
owner managed
NAI Sullivan Group
Davdi Hartnack/Sam
Swanson
CBRE/OKLA
Ryan Storer/Stuart
Graham/Mark Inman
Precor Ruffin, LLC
Rick Pritchett
CBRE/OKLA
Ryan Storer/Stuart
Graham
Brady's Properties
Ali Ghaniabadi
CBRE/OKLA
Mark Inman/Stuart
Graham
Bright Star Realty
Sun Lee
General Growth Properties
Steve Hughes
Buchanan Realty
Steve Buchanan
Equity Commercial
Realty, LLC
Gayla Artman
University of Oklahoma
HEW Marketing, Inc.
Heather Warrington
CBRE/OKLA
Mark Inman/Stuart
Graham
NAI Sullivan
David Hartnack
MOORE–NORMAN
Hollywood Center
1600 W Lindsey St
Madison Square Shopping Center
CBRE/OKLA
Stuart Graham/Ryan
Storer
Capital Realty
Wendy Foreman
CBRE/OKLA
Stuart Graham/Mark
Inman/Ryan Storer
Gerald Gamble Co.
Gerald Gamble
Equity Commercial
Realty, LLC
Bed Bath & Beyond
Gordman's
26,939
2,853
10.59%
$15.00
$15.00
34,200
3,000
8.77%
$20.00
$20.00
116,400
33,558
28.83%
$14.00
$7.00
568,679
28,850
5.07%
$16.50
$19.75
88,097
10,100
11.46%
$8.50
$8.50
503,851
0
0%
$0.00
$0.00
Dillard's
50,000
4,695
9.39%
$0.00
$0.00
Sears
Moore Tag Agency
68,440
35,500
51.87%
$16.50
$18.50
Tuesday Morning
Chapala Mexican Grill
Ratcliffe's Bookstore
Hobby Lobby
Mardel's
Kohl's, Target, Crest
Dominos Pizza
Back Woods Equipment
Office Depot, JC Penney
Best Buy
33,475
0
0%
$0.00
$0.00
106,307
0
0%
$0.00
$9.00
1,066,119
37,750
3.54%
$22.00
$24.00
40,898
1,800
4.40%
$8.00
$14.50
5,241,968
400,174
7.63%
Family Dollar
Academy, HomeGoods
Moore Family Clinic
GFF Foods
17
2015 Mid-Year Oklahoma City Retail Market Summary
EASTERN OK COUNTY SUBMARKET
SUBMARKET SUMMARY
Eastern Oklahoma County vacancy improved moderately, ending mid-year at 13.6 percent from 13.9 percent
at year-end. This is one of the submarkets with a significant amount of product that is older, several of which
have significant deferred maintenance or difficult configurations. Seven centers in this submarket remain over
25 percent vacant as they are older and, as we discussed in the summary, either have significant deferred
maintenance or retail shopping patterns have shifted away from them. Ultimately, for the submarket to show
significant improvement, these centers will need to be re-modeled, re-purposed, or just torn down. This
is happening in other submarkets, albeit slowly. Nonetheless, the newer, better located centers reflect the
performance or the greater market with vacancies in the 5-7 percent range.
EASTERN OKLAHOMA COUNTY
Town Center Plaza, started in 2005 and expanded over the years has remained a strong performer and is,
in our opinion, indicative of the demand for newer product in the area. Although, the mixed demographics
and overall vacancy of the area can make it a hard sell for some retailers and developers. We see growth in
the submarket limited to primarily pad sites and smaller strip development over the near term. Developers
are exploring the area, primarily Midwest City, for larger projects, but none have been able to put together
a deal yet.
15%
EASTERN OK COUNTY SUBMARKET
VACANCY
12%
9%
6%
3%
0%
120
2011
2012
2013
2014
2015
EASTERN OK COUNTY SUBMARKET
ABSORPTION
(thousands of square feet)
100
80
60
40
20
0
-20
18
2011
2012
2013
2014
2015
2015 Mid-Year Oklahoma City Retail Market Summary
EASTERN OK COUNTY SUBMARKET
Eastern OK County
10th Street Plaza
9207 NE 10th St
23 Post Plaza
NE 23rd St & N Post Rd
Boulevard Marketplace
Built/
Updated
Leasing Agent
Total
Space
Available
Space
Vacant
Rate 1
Rate 2
Anchor Tenants
1960
owner managed
33,000
0
0%
$6.00
$0.00
Dollar General
1986
Nancy Brewer
Nancy Brewer
Benchmark Opportunity
Partners
Seth Grubstein/Randy
Twist
Newmark Grubb Levy,
Beffort
Michael Almaraz
Brady's Properties
Ali Ghaniabadi
Price Edwards & Company
Karleen Krywucki/Ev Ernst
35,000
0
0%
$7.00
$0.00
Spencer's Smokehouse
Farmer's Insurance
35,765
6,000
16.78%
$16.00
$0.00
Dollar Tree
131,000
1978/1980
1965
1984
101 N Douglas Ave
Choctaw Plaza
14407 NE 23rd St
Decker Center
1200 S Air Depot Blvd
Del Crest Shops
1974/1984
1982
1957/1990
SE 15th & Sunnylane
Dixon Plaza
1985
1995
1987
1974
1970
1966
1952
1952
1993
2012
I-40 & Sooner Rd
Sooner Market Place
E Reno Ave & N Sooner Rd
Spencer's Center
NE 23rd St & N Spencer Rd
Sunnylane Plaza
SE44th St & S Sunnylane Rd
Tan & Tone America Center
1900 S Air Depot Blvd
The Village Shopping Center
4720 - 4754 SE 29th St
Town & Country
E Reno Ave & N Air Depot Ave
Town Center Plaza
SE 29th St & S Air Depot Blvd
Uptown Plaza
7430 SE15th St
Village Oak Plaza
1995
NE 23rd St & S Westminster Rd
Eastern OK County Totals
35.94%
6.57%
$12.00
$8.00
57,770
41,050
71.06%
$6.00
$0.00
Dynasty Care Services
Joe Leon
34,900
0
0%
$8.00
$0.00
Shapes Gym
Joe Leon
North Star
Joseph Atkinson
51,052
25,399
49.75%
$8.00
$0.00
Farmer's Insurance
Family Dollar
98,947
0
0%
$0.00
$0.00
50,000
22,700
45.40%
$3.00
$5.00
75,071
20,290
27.03%
$7.50
$10.00
86,200
11,145
12.93%
$5.00
$0.00
100,000
43,000
43%
$3.00
$5.00
51,000
0
0%
$5.00
$5.00
38,000
4,700
12.37%
$3.00
$0.00
38,000
4,700
12.37%
$3.00
$0.00
38,268
0
0%
$3.00
$4.00
28,160
0
0%
$0.00
$0.00
Bobby Tritten
Charles Shadid
Charles Shadid
GBR Properties,Inc.
Randy Vaillancourt
Equity Commercial Realty
Mark Hyde
Charles Shadid
Charles Shadid
Charles Shadid
Charles Shadid
Shapard Properties,Inc.
Bill Shapard
Shapard Properties,Inc.
Bill Shapard
Charles Shadid
Charles Shadid
CBRE/OKLA
Stuart Graham/Ryan
Storer
Charles Shadid
63,013
9,500
15.08%
Chelino's
$3.00
$5.00
0%
$6.00
$5.00
Speed Mart
Conoco
Discount Beauty Supply
8,600
33.99%
$7.00
$12.00
Super Cuts
My Dentist
32,353
4,350
13.45%
$7.00
$7.00
Rent-A-Center
133,974
10,000
7.46%
$12.00
$16.00
795,000
0
0%
$24.00
$0.00
168,032
2,400
1.43%
$10.00
$14.00
26,012
2,200
8.46%
$8.00
$12.00
Lupe's Restaurant
$6.00
Angel's Furniture, 23rd
Street Auction
84,888
0
2005
Ta Real Estate
25,300
2005
1981
$5.00
Jim Rose/Carl Archiniaco
1963
V C Davidson
Scott Cleaners
Dollar General
Scott Cleaners
Dollar General
Diva Beauty Supply
Plaza Event Center
Ted's Cafe Escondido
$7.00
1979
Michael Biddinger Real
Estate
Meagan Royer
Weingarten Realty
Brandon Schane
Sooner Investment
Brad Goodwin
Northstar Properties
Joseph Atkinson
Newmark Grubb Levy,
Beffort
Dollar Tree
Hobby Lobby
Highlander Laundry
Beauty Supply
Edward Jones
Economy Hearing Aid
The Dance Department
Lucky Bingo
Options Unlimited
Jackson Hewitt
Tom's Tires
The Garage, Volcano Sushi
12.50%
1966/1989
Chase Bank
2,200
5,000
1973
$8.95
33,500
40,000
2000
$6.95
Dollar General
Cool Smile
FedEx
Charles Shadid
Charles Shadid
Charles Shadid
owner managed
1000 S Douglas Blvd
Westminster Shopping Center
47,084
EASTERN OKLAHOMA COUNTY
SE 15th St & S Post Rd
Eastgate Shopping Center
1100 N Midwest Blvd
Gateway Plaza
SE 15th St & S Air Depot Blvd
Hartsdel
SE 44th St & S Bryant Ave
Heritage Plaza
351 N Air Depot Blvd
Holiday Square
1100 S Air Depot Blvd
North East Shopping Center
1124 NE 36th St
Oakcliff Shopping Center
3102 SE 44th Street
Park Estates
NE 36th & N Kelly Ave
Park Estates
NE 36th & N Kelly Ave
Park Plaza
3700 Springlake Dr
Shops at Del City
AAA, Check 'N Go, Papa
Murphy's
Akropolis Greek Restaurant
Ross, Big Lots,
Ace Hardware, Aarons
Target, J C Penney
Lowe's, Kohl's
Langston's, Hancock Fabric
Tuesday Morning
Papa John Pizza
58,000
1,000
1.72%
Davidson
$5.00
Miles Millwork
2,442,205
271,318
11.11%
19
RETAIL MARKET SALES SUMMARY
Property
Address
Submarket
Building
Sales Price
Price PSF
Sale Date
Square Feet
Deville Shopping Center
2408 N Council Road
West
115,693
$1,900,000.00
$16.42
1/1/15
OKC Market Square
8400 NW Expressway
Northwest
146,346
$5,325,000.00
$36.39
3/1/15
South Penn Plaza
1620-1648 SW 89th
Southwest
33,050
$2,200,001.00
$66.56
3/23/15
Cherry Hollow Shopping
13516 N Eastern Ave
Northeast
20,404
$2,800,000.00
$137.23
2/1/15
1100 S Air Depot
Mid/Del
86,200
$1,950,000.00
$22.62
2/1/15
Glen Eagles Plaza
1000 NW 150th
Edmond
20,238
$4,250,000.00
$210.00
4/1/15
Village Center Plaza
805-755 Covell
Edmond
27,656
$4,774,000.00
$172.62
4/30/15
Sooner Shopping Center
623 N Broadway
Moore
31,372
$1,200,000.00
$38.25
5/27/15
Belle Isle Station
1741 Belle Isle Station Blvd
North
202,147
$51,000,000.00
$252.29
5/1/15
Village at Quail Springs
2201 W. Memorial Road
North
100,404
$11,350,000
$113.04
6/17/15
May Crossings
5401 N. May Ave.
Northwest
21,750
$7,100,000
$326.43
6/29/15
Center
Holiday Square Shopping
Center
The sale that stands out is Belle Isle Station; this 15 year-old power center traded at a 5.4 percent capitalization rate in May. This is fully
125 basis points lower than any other power center sale in the last 5 years, that translates into almost $10 million in additional value.
While the location of the center next to Penn Square Mall and its Nordstrom Rack anchor account for some of the value, much can
be traced to aggressive national firms with lots of money to place and limited product. This acquisition is the fourth class A property
Kite Realty has purchased in our market.
Its hard to read too much into one sale. But we have been a seller’s market for a number of years with far more potential buyers than
sellers. It remains to be seen if the Belle Isle sale is a signal that capitalization rates are headed down for all classes of product or not.
Perhaps this will entice a few more sellers to enter the market.
The remaining six sales were indicative of our non-class A sales over the past several years, that is, sales are split between larger
distressed properties sold at a discount and smaller strip center sales.
21
Why the Internet of Things won’t be about the ‘things’
The biggest opportunity for retailers isn’t selling smart gadgets. It’s about understanding the customer and solving their problems.
By Ian P. Murphy | July 2, 2015
“Smart” objects such as self-operating thermostats and self-driving
cars may sound like science fiction. But many experts say these
and other early possibilities suggested by the Internet of Things
(IoT) are only a hint of what’s to come—and the massive amounts of
consumer data they are set to collect.
“Do you want an Internet-connected refrigerator? No!” McQuivey
said. “But do you want a service that solves a problem? Yes, you
absolutely do. The trick is that in order to get those experiences and
services, you need devices—and that’s exactly what the Internet of
Things is going to enable.”
Seen as the fifth wave of online technology that’s emerging as the
mobile and social revolution begins to peak and wind down, the IoT
era will be marked not by people talking to each other using new
technologies, but instead by machine-to-machine communication.
McQuivey described an IoT-linked vase that notifies a florist when
the flowers are wilting, noting that the merchant of the future
wouldn’t sell a consumer the vase; they would give it away to ensure
they could refill it. “The relationship is the goal,” he said.
This example is reminiscent of Amazon’s new Dash button that lets
Prime members order household supplies with just the push of a
button located in the home. While the button is only available on an
invitation-only basis now, the device could offer Amazon a way to
bypass retailers with the ability to stock items without going to the
store or even going online.
Alternatively, a shopper might soon be able to put on virtual reality
glasses, check out how a vase of flowers looks on an end table, and
then order a vase and flowers by voicing their wants into a monitoring microphone. “At any moment you could say, ‘(Insert name of
retail relationship here), send me toothpaste,’” McQuivey posited.
Tapping even bigger data
“Machines can and will chatter with each other at a level that a few
billion people on Facebook can’t even begin to approach,” James
McQuivey, vice president of research and principal analyst at Forrester Research, said at the recent Internet Retailer Conference +
Exhibition (IRCE) in Chicago.
‘We are all early adopters now’
The Internet of Things is a symptom of two larger trends, McQuivey
noted. “First, consumers are hyperadopting new technologies, and
companies are engaging in digital disruption.”
“Hyperadoption is the rapid and simultaneous uptake of unprecedented behaviors,” he said, pointing to texting or talking on
smartphones—things people didn’t do much 10 years ago, but now
embrace quickly. “If you think, ‘Oh, I’ll never need that,’” pointing to
a slide depicting the Apple Watch, “get that out of your system.
”
Forrester surveyed consumers about the Apple Watch upon its release for preorder in April, and 26%—representing about 50 million
people in the United States—said they expect to own a smartwatch
someday. What’s more, “8% want their next car to be a self-driving
car, and they don’t even exist yet,” McQuivey said.
“This is a consumer base that has learned the lesson of the last 10
years: ‘New stuff is going to come out, and it’s going to benefit me,”
he added. “We are all early adopters now.”
The economics of innovation
The reason new technologies are being adopted so quickly is that
their creation is no longer limited to large companies and research
universities. And that’s increasing the number of new ideas in the
marketplace exponentially.
“The economics of providing what customers want is getting more
favorable,” McQuivey said. “Many more people can participate, each
of them operating at significantly lower cost than before. Multiply
those two things together, and you get an explosion of ideas. This is
what’s happening in every industry.”
The result for retailers is the proliferation of sensors, cameras, microphones, and gadgets such as the Apple Watch, all of which are
set to capture the data that powers the Internet of Things. But it isn’t
sensors that consumers are interested in, McQuivey said; they are
looking for new purchase experiences.
22
The data that IoT devices generate is going to make today’s big data
look like small potatoes.
“By 2020, the amount of data consumers give off will be 100 times
what we have today,” he said. “You will know more about your customer, including data your customer never knew about themselves.
That information is gold.”
Machine-to-machine communication could soon guess a consumer’s mood or whether they are in a hurry based on mobile usage,
helping determine the best time to serve them an offer. Or Home
Depot and Whirlpool might collaborate on a sensor that reports
when a washing machine needs more detergent, service or replacement, McQuivey suggested.
Marketers won’t have much time to prepare for the onslaught of
data, and should be prepared to move to the cloud to handle it.
“Consumers will unleash this wave of data faster than you think, and
you must digitally disrupt yourselves to ride this wave with them,”
McQuivey said.
“But don’t just collect data to collect data; there has to be an analytics plan,” he added. “Right now, analytics are designed to push
transactions, and that’s appropriate. The next layer of analytics will
be about understanding your customer: What are their behaviors
and the drivers of those behaviors, and how can we influence and
participate in them?
“The big question mark is not what people want or what will people
do with it. It’s, what will we do with that information so that we can
anticipate our customer’s next need?”