Increased constuction could change the multi-family investment landscape, Buhl said, but while vacancy will increase, it shouldn’t deter demand.
“When you look at the last couple of years in Norman, occupancy has been near full,” he said.
Occupancy will likely return to normal levels with all of the developments occurring.
“Any increase would still leave vacancy tight — at below 7 percent industry-wide,” Buhl said. “Thus, the increase in construction activity, while notable, may only slow but not stop the momentum the industry has enjoyed.”
That doesn’t mean there isn’t demand from tenants, as well, Buhl said. Oklahoma is the 17th fastest growing state in the nation. The state grew by about 34,788 people over the past year, ending July 1.
This marks the second consecutive year the Oklahoma rate of growth has bested the previous year, Buhl said. When you look at population growth, it’s driven by the economy.
He said new residents need places to live, work and shop, which has led to a ramp-up in overall development, and multifamily has led the way.
Multi-family development in Cleveland County includes:
· Aspen Heights — 26 acres of the Sooner Mobile Park at 2601 S. Classen Blvd. in Norman; mixed-use PlannedUnit Development to include 194 units with 684 beds for student housing
· 16.53 acres at 3400 W. Tecumseh Road — multi-family apartment development with 230 units.
· The Avenue at Norman — 314 units at 3301 12th Avenue Southeast in Norman
· The Millennium at Lindsey Street and Classen Boulevard in Norman — 197 units with 705 beds for student housing
· The Icon at Norman at 36th Avenue Northwest and Indian Hills Road — 256 units under construction
· Falls at Brookhaven at 3730 W. Rock Creek Road in Norman — 154 units in final lease-up
· 16.63 acres at SW 19th and Telephone Road in Moore — Rezoned for a 314-unit, multi-family apartment development. Adjacent to the Royal Park Mobile Home community
· Traditions at Westmoore at 12209 S. Western Ave. — 16.37 acres for 615-unit, multi-family apartment development
· 17.24 acres at SW 34th and I-35 in Moore — 17.24 acres for multi-family apartment development
Breaking news, severe weather alerts, AMBER alerts, sports scores from The Norman Transcript are available as text messages right to your phone or mobile device. You decide which type of alerts you want to receive. Find out more or to signup, click here.