The Oklahoma City retail market ended 2020 with total annual negative absorption (-110,640 sq. ft.) for the first time since 2009. Several big box closures contributed to this number, including retailers Stein Mart and Stage Stores.
Occupancy also took a hit, dropping 40 basis points, ending the year at 92%.
The most important stimulus tool is the vaccines that are now being deployed. They will not prevent a difficult winter but should allow for some normalization of activity by mid-Q2 2021.
Presently, we anticipate GDP growth nearing 5% in 2021 with upside risk. The outlook will be uneven across sectors with the travel and hospitality industry likely to operate below potential for some time whilst technology and goods-production should see a quicker path to recovery.