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Second Quarter Commercial Real Estate Market News

July 6, 2024
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NAI NP Dodge produces a report on Omaha’s commercial real estate market each quarter. Below are some highlights for Q2 of 2024. Omaha’s office, retail and industrial markets remain impressively strong.

Office Market

The 48.6 million sq. ft. Omaha office market ended the 2nd quarter of 2024 with a vacancy rate of 7.0 percent, which was up a tad from last quarter. Absorption over the past 12 months was 176,000 sq. ft. Rental rates were up to $25.30. Approximately 1.3 million sq. ft. of office space is under construction at this time, about the same as last quarter.

Retail Market

More than 66 million sq. ft. of retail space was considered for this report, which is based on CoStar data. At this time, 434,000 sq. ft. of retail space is under construction, which is up from last quarter. Vacancy was 4.4 percent, down. Rental rates were $17.43 per square foot. The 12-month net absorption was 334,000 sq. ft. at the end of the quarter, down substantially from the previous period.

Industrial Market

Omaha’s industrial sector continues to be strong. The total market size is $107 million sq. ft. Approximately 4.4 million sq. ft. of industrial space is currently under construction, down from the previous quarter. Industrial vacancy is 3.0 percent, which is higher than last quarter. Rental rates are $8.15, which is up from last quarter. The 12-month net absorption is 1.6 million sq. ft., which is up from last quarter.

Second Quarter Announcements

Construction started on several commercial buildings at Gretna Landing, a mixed-use development northwest of 192nd & Highway 370 in Gretna. A groundbreaking ceremony took place recently to kick off a 220-unit apartment complex as part of that project.

The University of Nebraska Medical Center received approval to build a $65 million residential facility to accommodate 300 residents. Located near 39th & Dewey Street, the site currently consists of a surface parking lot and several low-density apartment buildings currently used as UNMC student housing.

Food Bank for the Heartland held a groundbreaking for a $37 million building planned for the northeast corner of 84th & L Street. The food bank will sell its current building at 10525 J Street. The 105,000 sq. ft. building will be constructed on a 12-acre site formerly occupied by H&H Chevrolet before it moved to the Steel Ridge development near Interstate 80 & Highway 370. Completion is planned for 2026.

Bellevue’s expansive $60 million waterpark development officially announced its name. Bellevue Bay Indoor Waterpark will be a 100,000 sq. ft. facility open year-round, featuring a retractable roof, attached hotels and retail stores.

During Mayor Jean Stothert’s press conference updating streetcar plans, it was revealed that 11 yet-to-be-announced, urban-core development projects totaling $400 million are currently in the planning stages.

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