The Skyline Will Grow
Sometimes you never know when and where someone of stature is going to confirm what is the next big story. Here’s all the marbles folks – I’ve been tracking what appears to be yet another skyscraper in the making for downtown. I don’t have the story nailed down yet – I’ve spent a lot of time trying to do just that. But for those of you who think I’m taking crazy pills, consider what Mark Beffort said at a real estate forum today – one covered by my esteemed co-worker and sometimes partner in crime Richard Mize:
Mark Beffort said another new corporate headquarters will be built downtown starting this year, but he didn’t say what company. He also said would-be tenants are vying for Devon Energy’s current space, but he didn’t say who.
The deals are in the works, said Beffort, principal with Grubb & Ellis-Levy Beffort. He spoke at the Skirvin Hilton Hotel at the Forecast Conference of the Commercial Real Estate Council of Oklahoma City.
And to anyone who insists Devon’s move into its new 50-story, 1.8-million-square-foot tower starting next month will wreck the downtown market for office space, he said, “I tell you, you are wrong.”
He said downtown, with a vacancy rate of 12.9 percent in Class A and Class B office buildings for lease, will take some time to absorb all of the 800,000 square feet Devon will leave behind in several buildings. But he said he expects almost one-third of it — about 250,000 square feet — to be filled in six to nine months.
SO, what does this all mean? Well, keep in mind Beffort is no run-of-the-mill downtown real estate guy. He represents the group that owns Leadership Square, Oklahoma Tower, Corporate Tower and CityPlace Tower. He is, to quote Ron Burgandy, “kind of a big deal.” This also means we’re tracking a new building for SandRidge that will likely be 10 to 20 stories high, a convention center hotel that will be at least 15 stories high, and this mystery corporate headquarters, which could be higher than anything we’ve seen – well, before Devon Tower that is.
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Comments
Really great news! What a super time in OKC. I am so happy to finally see alot of senergy taking place that will propel the city to new heights of prosperity
William, Continental Resources bought Devon’s current building and will begin moving into it from Enid this spring. The remaining space Beffort refers to is mostly in Chase Tower, some in Corporate Tower as I recall.
Pretty exciting, for sure. I like the lesser known Will Ferrell character, Mugatu’s (from Zoolander) quote, “I feel like I am taking crazy pills!”…
I am going to bet either Midfirst Bank/Midland Mortgage or American Fidelity/First Fidelity Bank. Midfirst is running out of space and Chesapeake would love their location to complement its campus. Midland just located around 200 mortgage bankers at Shephards Mall because they need space… AF had plans for a corporate campus up on wilshire and the broadway extension about 10 years ago and they are currently leasing the space on 23rd….
Steve,
When Beffort is referring to a new corporate headquarters, is he saying a current local company is going to build a new skyscraper or is referring to a new company looking to move to OKC will be building a skyscraper?
Regardless, I have heard that the new Sandridge tower that you reference will be much taller than 15-20 stories, ~30-40 from what I’ve heard.
I hope all this excitement downtown will make it more attractive for someone to restore First National (and clear the issues with ownership, etc.). I hate to see the grand old lady fall by the wayside. I really think it’s one of the prettiest buildings downtown.
Steve,
This quote:
“He also said would-be tenants are vying for Devon Energy’s current space, but he didn’t say who.”
That’s unclear–does that mean the new company wants either to build a new building or may very well just move into the old Devon building, or is it saying that the old Devon building will be destroyed and a new skyscraper erected in its place?
–guy
Jeff – I say “no” to your hunches about MidFirst or American Fidelity. They need inexpensive back office space that is found in the ‘burbs, not expensive highrise space downtown.
i vote for midfirst buying first national tower, restoring its former glory and occupying it. do that, and i might even do business with them.
Tom- You are missing one component. Sure it would be cheaper to be in the burbs, but Bill Cameron and the Record’s family care a tremendous amount about our city and are/would be willing to make a statement about OKC by putting some cash towards a new building downtown. That would cement their legacy and commitment to OKC.
And, Midfirst headquarters is in the middle of the Chesapeake land grab. I also heard that they have totally outgrown that space. Maybe Chesapeake will buy it, paint it black, and then Midfirst will have the cash it needs to put a nice down payment on a new tower.
Guy,
Continental bought Devon’s old building so it will be used by continental. The quote is referring to the additional space Devon occupies downtown.
I guess Continental Resouces for some of the freed- up space and the new highrise, Hasn’t that already been reported?