Omaha Market Report (Q4, 2023)

Omaha Market Trends

The 48.6 million sq. ft. Omaha office market ended the 4th quarter of 2023 with a vacancy rate of 7.2 percent, which was up from last quarter. Absorption over the past 12 months was 287,000 sq. ft. Rental rates were up to $24.60. Approximately 1.3 million sq. ft. of office space is under construction at this time, about the same as last quarter.

Approximately 65.6 million sq. ft. of retail space was considered for this report, which is based on CoStar data. At this time, 383,000 sq. ft. of retail space is under construction, which is up from last quarter. Vacancy was 4.7 percent, up slightly. Rental rates were up to $17.60 per square foot. The 12-month net absorption was 424,000 sq. ft. at the end of the quarter, down from the previous period.

Omaha’s industrial sector continues to be strong. The total market size is 107 million sq. ft. Approximately 5.1 million sq. ft. of industrial space is currently under construction, not quite as much as the previous quarter. Industrial vacancy is 2.2 percent, which is even lower than last quarter. Rental rates are $7.81, which is up slightly from last quarter.  The 12-month net absorption is 3 million sq. ft., which is up from last quarter. 

New Developments

During the fourth quarter, Oakview Mall changed ownership. Felix Reznick of 4th Dimension Property, purchased the 859,000 sq. ft. mall, which he had previously co-owned with Kohan Retail Investment Group. Reznick plans to add new entertainment concepts and children’s entertainment. The Opus Group started construction on the Storz Warehouse, a speculative, industrial/flex project at 5902 North 9th street. The 202,000 sq. ft. building will sit on an 11.5-acre site near Eppley Airport. The former Ethnic Sandwich Shop building at 13th & Pine Street in Little Bohemia has been demolished. Work is now beginning on the Boho Flats project. The 4-story, mixed-use building will have 59 market-rate apartments and 5,000 sq. ft. of ground floor retail space.

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