Space race: Non-energy firms claim newest downtown office space in Oklahoma City – NewsOK.com

Construction of the new 1300 Building in Midtown was on hold until MassMutual chose to abandon the suburbs and make the building the firm's new home. [Photo by Nate Billings, The Oklahoman]

Every year Oklahoman Real Estate Editor Richard Mize provides a snapshot of the office market for both downtown and the city as a whole. And his latest report, based on data accumulated by firm Price Edwards, was pretty bleak.

Office vacancy throughout the city jumped to 22 percent. Devon Energy, which had committed to leasing 250,000 square feet at the BOK Park Plaza, is looking to sublease that space following a dramatic change in oil since construction started on the 27-story tower.

An 11-story office building built by SandRidge Energy, meanwhile, remains empty a year after construction was completed.

Mize also noted the energy market is picking up, and smaller leases are beginning to backfill some of the space. Suburban office construction came to a halt, Mize noted. But downtown, construction continues and we're not just talking about BOK Park Plaza.

Andy Burnett, who along with Mark Beffort bought the historic Pioneer Building downtown, is in discussions with non-energy firms to anchor the building with a potential retail tenant to occupy the first floor.

Other developers are succeeding at attracting firms located in the suburbs. With renovations wrapping up at the Heritage Building (formerly known as the Journal Record Building), Bond Payne not only relocated his operations from north Oklahoma City but also drew an accounting firm, Eide Bailly, to make a similar move.

Eide Bailly, a regional certified public accounting and business advisory firm, will occupy the 20,000-square-foot first floor the Heritage Building starting in November.

Eide Bailly's current office of close to 60 staff members is housed in the Valliance Tower on Northwest Expressway, where the firm has resided on the 19th floor since 2005.

For Eide Bailly, the move downtown coincides with outgrowing their current space. It was when Greg Jones, partner-in-charge of Eide Bailly's Oklahoma City and Norman offices, discussed a downtown option with friend and client Payne that it all fell into place.

We evaluated a number of locations throughout Oklahoma City, but ultimately decided that The Heritage with its blend of classic and modern design and its downtown location would be a perfect fit for us as we move toward a future of growth and success, Jones said. We are excited for the move downtown and the opportunities it will bring, especially being in a building with so much history and significance in our community.

When Michael Nichols first bought a decades-old one-story office building at 1300 N Walker Ave., his plan was to build a small headquarters for his firm, Iconic Construction. But as the area developed, he realized the site could support a more ambitious two-story building.

After a little bit of development and reasoning, I determined it was best to make the property something great, Nichols said. So we decided to build a two-story building facing the property line with great street access.

The design, inspired by buildings Nichols saw in New Orleans, would draw heavily on that experience with the creation of balconies, awnings and the building being built out to the sidewalk. High casement windows were designed to give the appearance of the building having been built in the years after statehood.

Nichols saw no challenges in building a speculative office building with oil selling at $100 per barrel. He launched into design and planning while redeveloping the corner of NW 16 and Broadway for his own company.

The site was cleared. A sign showing the building rendering was posted. And then passers-by noticed everything had ground to a halt.

Once again, a suburban operation looking to move to the heart of the city filled the gap as Richard Labarthe, looking for a new home for MassMutual, discovered Nichols' plans.

My wife Pat Ball wanted to have brunch down here on a Sunday at Louie's, Lebarthe said. We noticed that Michael Nichols had his sign up. And Pat suggested looking at it.

The talks advanced quickly as Lebarthe worked with Mark Burson, a general agent at MassMutual, to create a new hub that would better appeal to young professionals. The major tweak requested was the addition of a glass-encased third floor for event space.

Only the first floor remains available with a bank set to open a retail branch. Lebarthe believes downtown area office space will continue to diversify as it stands out from traditional suburban locations.

There is so much energy and vibrancy here in Midtown, Lebarthe said. It's a mixture of different generations, many amenities and a lot of restaurants. It's in the middle of all the action.

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Space race: Non-energy firms claim newest downtown office space in Oklahoma City - NewsOK.com