Although distressed house listings still pose a problem on the real estate market of Tulsa, Oklahoma, analysts have stated that the commercial real estate industry of the metro area is showing signs of recovery. According to them, although things are still way below healthy market levels, there have been improvements evident in the commercial property industry.
Local realtors have reported that sale of Tulsa distressed properties in the commercial sector and even newly-built structures are rising as existing tenants try to take advantage of the low prices to improve their locations or find better deals. They also reported that retail development projects are starting to appear in the metro region; including The Walk, a retail space in Jenks and a development project in Yale center.
Aside from rising purchases of commercial distressed properties in Oklahoma, vacancy rate among retail spaces in the region also went down to 11.69%, analysts have reported. Rental rates have also declined, although analysts believe that the drop has more to do with landlords offering concessions to keep retail tenants rather than due to increased number of new renters. However, they did report that more retail stores are appearing, with most of the new tenants accounted for by drug stores, yogurt shops and fast food chains.
Some local realtors are hoping that improvements in the commercial property market will spill over the residential property sector. They stated that it is possible that new tenants in the metro area will also consider purchasing a new house or a dwelling from distressed house listings. They reported that office vacancies have gone down and leasing activities involving office spaces have picked up in the first three months of 2011, with energy firms accounting for most of the new lease agreements.
With a number of energy businesses trying to expand and take advantage of rising oil prices, local real estate agents are hopeful that condo auctions and residential property sales will also benefit from the influx of businesses and tenants. Meanwhile, it is not only office spaces that are enjoying a surge in leasing activities, but also industrial spaces, local real estate agents have revealed, with industrial vacancy rate declining to just a little over 11%.
Despite distressed house listings and residential foreclosures still posing problems on Tulsa's real property market, realtors are optimistic that eventually, the improvement in the commercial property sector will spill over the residential property market. They stated that increased activity in industrial and office properties will likely result in more home buyers.
Distressed House Listings Still Up, but Commercial Market Is Better is a post from: Foreclosure Homes Investing