McGraw Commercial Properties manager, Neil Dailey, continues his series of conversations (here, here, and here) with the various divisions of McGraw Commercial Properties on a Zoom call with Warren Stewart and Dilon Argo. Warren and Dilon are part McGraw Commercial Properties industrial team and give an update on what they have seen throughout the COVID-19 shutdowns.
Here are the highlights of the conversation:
Unlike most of the other sectors of the commercial economy, industrial real estate hasn’t taken the same kind of hit. Most of the businesses in this sector have been deemed essential businesses, and for many, that has meant business as usual or an increase in business and productivity. Employers are not laying off employees, tenants are not vacating properties, and Tulsa’s high occupancy rate (around 95%) in industrial space has held strong. That means industrial real estate deals are still happening – often delayed because of accounting and financing being slowed – but still moving forward.
Most new developments are still going strong and moving forward as planned, because of Tulsa’s high percentage of occupancy. Warehouse square footage is needed and because the market is limited locally, these kind of projects are still moving forward. One of the biggest industries driving the new development is the budding marijuana industry that frequently requests space ranging from 1500SF – 8000SF.
Changes in Lease and Contract Language
One constant across market sectors has been the expected change in contract language following the pandemic. Most are expected to include Force Majeure, pandemic, and other types of clauses that would have seemed out of place just a few months ago.
The Market Moving Forward
Most industry professionals and economists are predicting that things will start feeling more like normal in the fourth quarter. As a team we are still showing properties, but implementing new tools such as video tours, face masks, and individual walkthroughs that we weren’t necessarily before.
For more information about how McGraw Commercial Properties can help you with your retail property needs, you can visit ourIndustrial Services tab or call 918.388.9588 today.