Omaha Market Report (Q4, 2024)
Market Report
The 48.6 million sq. ft. Omaha office market ended the 4th quarter of 2024 with a vacancy rate of 8.0 percent, which was up from last quarter. Absorption over the past 12 months was -358,000 sq. ft. Rental rates were up to $24.64. Approximately 1.2 million sq. ft. of office space is under construction at this time, same as last quarter.
More than 66.5 million sq. ft. of retail space was considered for this report, which is based on CoStar data. At this time, 277,000 sq. ft. of retail space is under construction, which is up a bit from last quarter. Vacancy was unchanged at 4.3 percent. Rental rates were $17.64 per square foot. The 12-month net absorption was 450,000 sq. ft. at the end of the quarter, down a little from the previous period.
Omaha’s industrial sector continues to be strong. The total market size is 109 million sq. ft. Approximately 3.7 million sq. ft. of industrial space is currently under construction, same as the previous quarter. Industrial vacancy is 3.1 percent, which is down from last quarter. Rental rates are $8.25, up 10 cents over last quarter. The 12-month net absorption is 742,000 sq. ft., which is down dramatically from last quarter.
New Developments
Woodbury Corporation of Salt Lake City closed on part of the Crossroads land near 72nd & Dodge Street. They plan to start construction of the first two phases this spring. Construction went vertical last quarter on Broadmoor Development’s 550-unit apartment project immediately north of Millard North High School. FNBO announced it plans to sell its 22-story, former “main bank” building at 1620 Dodge Street to NuStyle Development, which will redevelop it into 300 apartments plus two levels of commercial space. The Omaha Press Club will likely remain on the top floor. A 145-room hotel and 6-story mixed-use building are planned for the southeast corner of 132nd & Pacific Street in the Sterling Ridge development.