I'm surprised they're just now mentioning it, but it's been nearly fully leased since a few months after they broke ground. Laredo Petroleum is the other occupant that leased the rest of the building. There's only the bottom floor left that's right above the parking structure.
Just like every market there's a flight to quality in office. Good thing for Tulsa is we have a really active conversion market of historical or just older office building being converted to hotel/apartments. This will just create more opportunities in that area. It's not neccessary a bad thing to see tenants shift around a bit as eventually some of the smaller B/C office buildings like Beacon and some of those will probably be converted to other uses besides office.
Some surprising and not so surprising news is ARG is officially no longer expanding or looking for new sites. Santa Fe Square is going to be their last deal for a long time. They let go of some staff as well, all bizarre. They would have canceled Santa Fe Square if they hadn't been on the hook for the TIF dollars.
It's a move that makes zero sense to me given how fast Tulsa is growing population wise right now and the housing market is still very strong here with price appreciation unlike some markets like Austin that have seen a bit of a correction. There's only a small handful of housing markets that aren't in the negative right now in pricing change and Tulsa is one of them. There's just a huge lack of housing still.
ARG does this every time there's a small blip in the market - we really need some better developers in town that will do big ground up apartment projects.
