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Tulsa Apartment Rental Rates Increase

Written by Dorothy G. Macdonald    Friday, 23 December 2011

Apartment rental rates rose 1.2 percent in Tulsa through the first half of 2011, according to the CB Richard Ellis of Oklahoma midyear survey released Tuesday. Rates rose 2.4 percent from year-ago marks, according to data compiled by CBRE First Vice President David Z. Forrest and Senior Associate Brian J. Donahue. This increase also came with a decline in new-tenant incentives. Forrest and Donahue estimated only a third of complexes now offered such specials. “We were probably seeing 65 to 75 percent of properties we surveyed in December offering some sort of special, where now it’s just a third of that,” said Donahue. Occupancy rates averaged 91.5 percent, half a percentage point higher than December but equal to a year ago. “I think the takeaways from it that we saw was just the large occupancy increase in Class A, 2.5 percent in the last six months,” he said in a telephone interview. While rental rates have not regained historic levels enjoyed at the close of 2008, the CBRE duo expect Tulsa-area apartment rents to record 2-percent to 3-percent annual growth, barring any further economic problems. The survey found rents for: * One-bedroom units averaged $477 a month. That was up $4 from Dec. 31 and $11 from a year ago. * Two-bedroom, one-bath units averaged $606, up $11 from the end of 2010 and $32 from June 2010. * Two-bedroom, two-bath units averaged $644, up $5 from December, but down $3 from a year ago. With 1,004 units surveyed, Broken Arrow led the geographic area with a 94.5-percent occupancy rate. Central Tulsa, with 2,367 units sampled, followed at 93 percent. At the other end of the pack was east Tulsa, its 3,174 surveyed units averaging 89.5 percent occupancies. CBRE charted only three multifamily property sales of 50 or more units in the first half of 2011, the average sale price per unit $31,098. One represented a distressed sale. Forrest and Donahue said they expect sales to pick up in the next six months, setting the pace for a “new normal” of 12 to 15 property deals a year. All of these trends left an overall positive feel, said Donahue. “It just seems like things are slowly firming up, both occupancies and rental rates as well,” he said.

Last Updated ( Friday, 23 December 2011 )