NAI NP Dodge, the commercial real estate division of N.P. Dodge, produces a report on Omaha’s commercial real estate market each quarter. Below are some highlights from the third quarter of this year.
Office
The 49.4 million sq. ft. Omaha office market ended the 3rd quarter of 2025 with a vacancy rate of 7.7 percent, which was down from last quarter. Absorption over the past 12 months was -162,000 sq. ft. Rental rates were up to $25.42. Approximately 1.6 million sq. ft. of office space is under construction at this time, more than last quarter.
Retail
Approximately 66 million sq. ft. of retail space was considered for this report, which is based on CoStar data. At this time, 391,000 sq. ft. of retail space is under construction, which is up from last quarter. Vacancy went up to 4.4 percent. Rental rates were $18.35 per square foot. The 12-month net absorption was 251,000 sq. ft. at the end of the quarter, down from the previous period.
Industrial
Omaha’s industrial sector continues to be strong. The total market size is 111 million sq. ft. Approximately 4.7 million sq. ft. of industrial space is currently under construction, up over the previous quarter. Industrial vacancy is 2.9 percent, which is up from last quarter. Rental rates are $8.54, up over last quarter. The 12-month net absorption is 851,000 sq. ft., which is down from last quarter.
Third Quarter Developments
During the third quarter, we learned that Dillard’s department store will move from Oakview Mall to the former Younker’s space at Westroads Mall. Dillards will completely remodel the space. Westroads also landed a 31,000 sq. ft. Toys R Us store to fill its vacant, former Forever 21 space.
Raymond Partners of Scottsdale, Ariz., plans to break ground early next year on The Residences at Heartwood Preserve, an upscale condo development on the west side of the 500-acre Heartwood Preserve development.
Salt Lake City-based Woodbury Corporation started construction on the long-awaited Crossroads project at 72nd & Dodge Street.
Clarity Development revealed that it plans a multi-building development project in and around the Little Bohemia district.
Photo by Emily Fisher
