In the center of America’s heartland lies a growing industrious population. As the home of one of the most important Interstate highway intersections in the United States, connecting Interstate 35, Interstate 40 and Interstate 44, Oklahoma is well-suited for commercial and industrial development.
In 2014, the Bureau of Economic Analysis ranked Oklahoma number one in Durable Goods Manufacturing Growth. Forbes, using economic data from the Bureau of Labor Statistics and C2ER, named Oklahoma as one of the best states to make a living. Various other publications rank Oklahoma among the top ten states for middle class job creation (New Geography, 2013) and the Best Place of Business (Forbes, 2014).
The Bureau of Economic Analysis also noted that Oklahoma City was one of three large metropolitans in the United States to post a GDP gain of 3.5% or higher during the 2011-2013 period. Oklahoma City was also ranked fourth nationally as “most aspirational cities” based upon economy, quality of life and demographics (The Daily Beast, 2013). As a retirement destination, Oklahoma City was ranked in Forbes (2014) among the “25 Best Places to Retire.”
With approximately 726,000 acres of land owned since statehood, the CLO offers many locations for commercial and industrial developments.
The CLO offers short-term commercial leases from one to three years and long term commercial leases from three to 55 years. A long-term commercial lease can be negotiated to ensure a lease meets the needs of a commercial or industrial lease.
Short-Term Commercial Leases
The Land Office offers a short-term commercial lease (STCL) that can be renewed every three years, with a new appraisal before renewal and a new contract issued. A STCL is not subject to public bid. The lease rental amount is determined by the Land Office based upon an appraisal using current market values. The Land Office offers several types of short-term commercial leases (STCL) which include, but are not limited to: residential, commercial tower sites, pipelines, access roads, valve sites, well sites, meter sites, compressor stations or salt water disposal sites.
In order to apply for a STCL, the individual or entity must submit an application to the Land Office.There is a non-refundable one-time appraisal fee of $250.00, which will be applied to the first year’s rent once the contract is signed. Annual rent is determined by the appraisal. Once the annual rent is determined, the Land Office will notify the potential lessee of the annual lease rent. If accepted, the Land Office will produce and deliver a contract to the lessee to be signed and returned to the Land Office for signatures and recording. An original executed contract will be mailed to the lessee. For a more detailed timeline on this, please refer to the STCL process.
Salt-Water Disposal Leases
The Land Office requires both a bond and a mechanical integrity test on all salt-water disposal leases. Specifically:
- $10,000 Bond with the Land Office or $10,000.00 cash in lieu of the CLO bond which will be held in a trust.
- A bond with the Corporation Commission does not satisfy this requirement, only a bond with the Land Office.
- The Land Office does not accept letters of credit.
Additionally, a Mechanical Integrity Test is required every five years for salt-water disposal leases. An Injection Report (1012A) is due annually.Failure to supply the bond, MIT and Injection Report in a timely manner is cause for cancellation of the lease.
Short-Term Commercial Lease Assignments
A STCL can also be assigned to a new lessee if current lessee agrees to the assignment and the assignment is approved by the Land Office. The current lessee must submit a completed assignment request form. The assignment is not final until approved, in writing, by the Land Office.
An assignment fee of $75.00 must be paid when the initial assignment request is submitted. Improvements can either be sold to the new lessee or removed from the property. The Land Office is not responsible for negotiating rent payments or status of the improvements to complete an assignment. All lease rents must be paid current before an assignment will be approved.
Long-Term Commercial Leases
A Long-Term Commercial Lease (LTCL) may have a lease term of more than three years, but not more than 55 years. All long-term commercial leases are subject to public bid. A LTCL Lease Application Form must be submitted for consideration.
Long-Term Commercial Lease Assignments
Long-term commercial leases (LTCL) can also be assigned according to the terms of the lease contract. An assignment requires a request for assignment and written approval from the Land Office.
The Land Office can exchange property if the private property to be exchanged is either equal to or greater than the value of the Land Office property and the exchange is determined to be beneficial to the Trust. All exchanges must be approved by the Commissioners and are not subject to public bid.
Commercial Property Listing
A complete listing of commercial property listings, may be accessed here.
Appraisal Services Contracts
For information on appraisal services contracts click here.