Meagan McCollum, assistant professor of finance at the University of Tulsa.
For our latest installment of the Expert Insight Series, we had the pleasure of speaking with Meagan McCollum, assistant professor of finance at the University of Tulsa. Meagan received her PhD in Finance from Louisiana State University in 2015.
Dr. McCollum has been a part of the American Real Estate and Urban Economics Association since 2013 and the American Real Estate Society since 2014. Her research interests include real estate finance, household finance, financial intermediation and sustainability. Read on for more insights on the Oklahoma commercial real estate (CRE) market, the challenges the office market will face this year and more.
Q. Tell us about your background and why you chose a career in teaching real estate.
I first began becoming interested in real estate while I was an MBA student in 2008 at the height of the Great Recession and was fascinated by how many market participants made decisions that were based on the assumption that real estate prices would always increase, which sparked my research interests on how mortgage lending and payment decisions are made. My research helps inform my teaching interests. Some of my students will be interested in pursing a career in real estate, but all of my students will interact with the real estate market at some point in time. I love hearing from my students that what they learned in my class helped them make personal real estate decisions.
Q. What is the #1 challenge that the office market will be facing in 2023?
The office market will continue to be challenged by companies navigating and revising work-from-home policies for their employees. It’s still an open question how much remote work that began in COVID will be permanent. Companies will likely be conservative in estimating their office space needs for the foreseeable future. So, office buildings looking to attract and retain tenants will need to stand out in a saturated marketplace.
Q. What differentiates the commercial real estate market in Oklahoma from other major markets in the United States?
The commercial real estate market in Oklahoma is still relatively small relative to other major markets. However, it is growing and starting to attract more institutional investor attention recently. One statistic that is worth watching is how many new residents the state is attracting. Oklahoma has been in the top 10 states for net migration in the past few years. Certainly, the rise of remote work and Oklahoma’s relatively affordable residential real estate market have helped drive this trend. This growth presents new opportunities for the commercial real estate market development activity throughout the state.
Q. How have you seen the industry evolve in the last 10 years?
The proliferation of detailed data availability on property characteristics, transactions and financing has changed commercial real estate investment decision-making, especially for institutional investors. Although the fundamentals by which real estate investment is evaluated haven’t changed, the ability to access relevant and timely data has changed the level of sophistication of the analysis that can be performed has changed a lot. For current students considering a career in real estate, it’s more important than ever to develop advanced data analytics skills alongside a strong foundation in real estate management, finance and law.
Q. Has the evolution of online marketing influenced the commercial real estate industry? If so, how?
Yes, it has made information on CRE available to a wider audience. I don’t think that this has fundamentally changed who invests in CRE, but it has changed how potential buyers and sellers become aware of opportunities.
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