The definition of a boomtown is “a town undergoing rapid growth due to sudden prosperity.”
Edmond’s growth has been drawn out over the last few years; however, the most recent increase in commercial real estate has seemingly come out of nowhere. For many residents, it’s impossible to drive down a main road without noticing some sort of construction or “coming soon” sign preempting another arrival of yet another business.
Indeed, Edmond has commercial real estate gurus chomping at the bit to develop. As the population continues to increase and Edmond’s school system continues—despite recent budget cuts—to thrive, the average household income has increased, as well. All of this contributes to a myriad of new businesses popping up along the morning and afternoon commute. Large-scale chain businesses like Main Event, Cabela’s and Top Golf offer a wide variety of entertainment and retail options, while new restaurants like Pappadeaux Seafood Kitchen are expected to make an appearance.
Although the Quail Springs area is booming, the underlying anxiety surrounding the recent downturn in Oklahoma’s economy is still present. However, despite unfortunate education, healthcare and core program budget cuts and layoffs from many Oklahoma juggernauts like Devon and Chesapeake, new businesses such as Zaxby’s, Costco and REI remain interested in staking their claim locally.
Though, the real estate growth is perhaps most notable in the new 91,000 foot, two story, multi-tenant development called Shoppes at Quail Springs.
The retail-office center is located at May off of the Kilpatrick Turnpike. The location, similar to the types of businesses the Shoppes will house, was strategic. The Memorial Corridor, a space attractive to corporate businesses, contains hotels, suites, big box retailers, Quail Springs Mall, a medical office community and various local and chain businesses. It is impossible to talk about Shoppes at Quail Springs without first talking to Fred Mazaheri of Mazaheri Properties.
Mazaheri is responsible for Shoppes at Quail Springs as well as many other Oklahoma real estatedevelopments including retail shops, parking and medical office buildings. He and his team did diligent research concerning the demographics and community needs before taking on Shoppes at Quail Springs. Linked had the privilege of sitting down with Mazaheri as he discussed the benefits, challenges and inner workings of this huge, local development.
Linked: Tell us about what sorts of businesses you expect to house at Shoppes at Quail Springs.
Fred Mazaheri: Shoppes at Quail Springs will be a high-end mixed use retail with office space on the second floor. We are looking to have several restaurants, clothing boutiques, a jewelry store, high-end furniture, a bank, etc.
L: Can you talk about the recent commercial real estate boom in the Edmond/OKC metro area?
FM: In Edmond, with the growth of housing east of I-35, we are in need of more commercial retail along I-35. Bricktown has its own economy. We will see a rapid growth due to the convention center, park, expansion of multi-family, strong hospitality occupancy, etc. Retail and restaurants will soon follow.
L: Why did you decide to invest such time, energy and funding in Shoppes at Quail Springs?
FM: Strong demand for retail, high occupancy rates on the Memorial Corridor and low interest rates are the main reason for our decision to build Shoppes at Quail Springs. There are many investors including myself that are looking to purchase class “A” shopping centers in the Oklahoma City metro, and people are willing to pay premium price with low cap rates. There is currently not enough product in the market.
L: How do you think the downturn of the oil and gas industry will impact the commercial real estate market?
FM: We realize that oil price uncertainty and decline of oil prices has a shocking effect on Oklahoma’s economy. The effect is more in small towns where the energy sector is the main sector of the economy and employment. According the Chamber of Commerce, in Oklahoma City, the energy sector accounts for approximately three percent of Oklahoma City metro’s total employment, but nine percent of total earnings. Oklahoma City has also shown economic stability and diversification of its economy.
L: Why do you believe the Quail Springs area is such a hot spot for new commercial real estate developments?
FM: Business has been very successful in the Quail Springs area. Tenants continue to renew their leases. Pablano Grill moved from 122nd St. and May to May and Memorial and increased their sales more than double. May and Memorial is the main exit to Quail Springs Mall from the west or east side of Kilpatrick. The heavy traffic and visibility make Shoppes at Quail Springs a great location, positioned for success.
