Omaha Market Report (Q1, 2025)
Market Overview
The 48.8 million SF Omaha office market ended the 1st quarter of 2025 with a vacancy rate of 8.0 percent, which was the same as last quarter. Absorption over the past 12 months was -451,000 SF. Rental rates were down slightly to $24.44. Approximately 1.3 million SF of office space is under construction at this time, a little more than last quarter.
Omaha’s industrial sector continues to be strong. The total market size is 109 million SF. Approximately 4.4 million SF of industrial space is currently under construction, up over the previous quarter. Industrial vacancy is 2.8 percent, which is down from last quarter. Rent- al rates are $8.28, up 2 cents over last quarter. The 12-month net absorption is 1.3 million SF, which up quite a bit from last quarter.
More than 66.6 million SF of retail space was considered for this report, which is based on CoStar data. At this time, 281,000 SF of retail space is under construction, which is up a bit from last quarter. Vacancy went up to 4.5 percent. Rental rates were $17.67 per square foot. The 12-month net absorption was 539,000 SF at the end of the quarter, up from the previous period.
New Developments
During the first quarter, U.S. News & World Report named Omaha as America’s hottest housing market just ahead of markets like Austin, Houston and Denver. Additionally, the U.S. Census Bureau reported that the Omaha Metropolitan Statistical Area population exceeded 1 million people for the first time. The metro’s official population estimate is currently 1,001,010. The future streetcar route continues to attract urban development projects as GreenSlate Development announced it will build a 5-story apartment building on the site of WOWT’s former television studio in the Blackstone District. Noddle Companies announced it will build a 31-acre mixed-use development as part of the Gretna Landing project near 192nd & Highway 370. The City of Bellevue broke ground on its $60 million Bellevue Bay Water Park, which will be the fourth largest indoor water park in America.