Developer proposes converting half-empty OKC office towers into apartments
OKLAHOMA CITY (KFOR) — A California-based developer wants to breathe new life into a half-empty northwest Oklahoma City office complex by converting it into apartments, the latest in a nationwide trend spurred by housing shortages and a lack of demand for office space post-pandemic.
The Landmark Towers, located off Northwest Expressway, have struggled with occupancy since the pandemic emptied out many in-person office spaces.
Craig Tucker, managing broker and partner at Oklahoma real estate firm Price Edwards, said demand for office space simply isn’t what it used to be.
“The office market, unfortunately, demand is just not there right now,” Tucker said.
The firm’s latest data shows the average Oklahoma City-area office building is more than 25% vacant. That number was closer to 20% in 2018.
“COVID sent a lot of people home,” Tucker said. “They quickly figured out we don’t need office space.”
The farther outside downtown you go, the worse the situation gets.
Price Edwards found the Landmark Towers were only 18% vacant before COVID.
Now, they’re about 50% empty.
Tucker said he wasn’t surprised when OKCTalk.com first reported the plans to convert the complex into apartments.
“It makes a lot of sense,” he said. “Office is a tough slog right now, and apartments are pretty popular, and conversions make a lot of sense.”
According to planning documents on file with the City of Oklahoma City and obtained by News 4, the company behind the plans to redevelop Landmark Towers is California-based Lincoln Avenue Communities.
On its website, Lincoln Avenue describes itself as a company which “builds communities that are sustainable, resilient, and affordable for the long-term… focused on creating solutions to address America’s affordable housing shortage while delivering financial, social, and environmental returns.”
Their full plans for Landmark Towers include dozens, if not hundreds, of apartments, along with a community pool and park. The city’s Planning and Zoning Commission is scheduled to review the developer’s full plans at their next meeting on Thursday.
The company also filed a request with the Oklahoma State Historic Preservation Office to have the buildings added to the National Register of Historic Places, which could open the project up to special tax incentives.
Tucker said the trend of office-to-apartment conversions began around 15 years ago in Oklahoma City, but this would be one of the first examples happening outside the downtown core.
“I think it will energize that area,” Tucker said. “You know, there’s two or three restaurants right out front that will benefit from it. 100% occupied apartments [are] a lot better than the 40% occupied office building.”