NAI NP Dodge produces a report on Omaha’s commercial real estate market each quarter. Below are some highlights for Q3 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 3rd quarter of 2024 with a vacancy rate of 7.7 percent, which was up from last quarter. Absorption over the past 12 months was -277,000 sq. ft. Rental rates were up to $25.27. Approximately 1.2 million sq. ft. of office space is under construction at this time, a little less than 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, 273,000 sq. ft. of retail space is under construction, which is down from last quarter. Vacancy was 4.3 percent, down a little. Rental rates were $17.25 per square foot. The 12-month net absorption was 489,000 sq. ft. at the end of the quarter, up substantially from the previous period.
Industrial Market
Omaha’s industrial sector continues to be strong. The total market size is 108 million sq. ft. Approximately 3.7 million sq. ft. of industrial space is currently under construction, down from the previous quarter. Industrial vacancy is 3.3 percent, which is higher than last quarter. Rental rates are $8.15, which is unchanged from last quarter. The 12-month net absorption is 1.5 million sq. ft., which is down from last quarter.
Third Quarter Announcements
Olsson announced that it will build a 4-story office building in west Omaha. The engineering and design firm will be the anchor tenant of The Row, part of the 500-acre Heartwood Preserve development near 144th & West Dodge Road. The project is being developed in partnership with Lanoha Real Estate Company.
New additions are planned at Millwork Commons, a 50-acre area just north of Charles Schwab Field including: 1. Millwork Hotel, a $57 million, 135-room renovation of an historic Building; 2. The Frame Apartments, a $44 million, 5-story, 146-unit apartment building west of the Ashton Building; and 3. A 600-stall, city-owned parking garage at 12th & Nicholas Street.
The Omaha Airport Authority approved a slate of retail leases for the new, $950 million terminal now under construction. Tenants will include Block 16, Fernando’s, Scooters, Starbuck’s, Panda Express, Pitch, Runza and several others.
Photo credit: Brad Williams
