Omaha Market Report (Q1, 2024)

Market Report

The 48.6 million sq. ft. Omaha office market ended the 1st quarter of 2024 with a vacancy rate of 6.9 percent, which was down from last quarter. Absorption over the past 12 months was 155,000 SF. Rental rates were up to $25.25. Approximately 1.3 million SF of office space is under construction at this time, about the same as last quarter.   

Omaha’s industrial sector continues to be strong. The total market size is 107 million SF. Approximately 4.8 million SF of industrial space is currently under construction, not quite as much as the previous quarter. Industrial vacancy is 2.6 percent, which is a little higher than last quarter. Rental rates are $7.93, which is up from last quarter. The 12-month net absorption is 1.3 million SF, which is down dramatically last quarter.  

Approximately 66 million SF of retail space was considered for this report, which is based on CoStar data. At this time, 375,000 SF of retail space is under construction, which is down slightly from last quarter. Vacancy was 4.6 percent, down slightly. Rental rates were $17.47 per square foot. The 12-month net absorption was 576,000 SF at the end of the quarter, up from the previous period.

New Developments

NuStyle Development announced a $163 million plan to convert the Central Park Plaza twin towers downtown into a 700-unit apartment complex. Known as “The Duo,” this project would include a city-owned parking garage on the site of the old Park Fair Mall building which is now used for indoor parking. The value of the crossroads redevelopment project has gone from $553.8 million to $861.7 million. Woodbury Corporation of Salt Lake City has joined the ownership team and will direct the development moving forward. The Omaha Airport Authority broke ground on its $950 million expansion and renovation of the Eppley terminal Completion is planned for 2028. Owners of the Union Omaha soccer team announced plans for a $300 million, 18-acre, mixed-use development next to Gallup’s headquarters along Abbott Drive that would include a 7,000-seat soccer stadium. Mayor Jean Stothert said the city is not in a hurry to issue a development RFP for the empty square block at 14th & Dodge, because it may be used as a laydown yard for streetcar construction which starts this year. 

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