Industrial employment was a bright spot for the Oklahoma City economy to begin 2019, as the overall metro unemployment rate fell to 3.0% in March. Though hiring remained flat in the energy sector, state-wide crude oil production increased by 8.1% over last year.
Absorption grew further into positive territory during Q1 2019, finishing the quarter with 268,913 sq. ft. of net absorption. Demand for industrial space remains strongest in the Southwest and Southeast Submarkets, due in large part to their proximity to multiple channels of distribution.
The industrial market registered 68 lease transactions during Q1 2019 and over 485,000 sq. ft. of gross absorption during Q1 2019.
Average asking rents rose during Q1 2019, as demand for industrial space with modern amenities remains strong. The rise of e-commerce has caused national retailers to place a premium on building up their industrial portfolios in growing markets like Oklahoma City.