Weekly Market Report – January 12, 2023

Jan 12, 2023 | 0 comments

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Grow Omaha is proud to deliver this market report to you each week. This would not be possible without the support of our sponsor, NAI NP Dodge!

Restaurant & Retail Updates

The Mio is getting closer to opening in the former Lo Sole Mio space at 3001 South 32nd Avenue. The new ownership is finishing up renovations and arranging for the liquor license. The menu has been finalized. No exact date is set, but opening is expected to occur during the first quarter of this year.

Burrito Bros. has opened a second location inside the Sapp Bros. travel center near Interstate 80 & Highway 50. The first Burrito Bros. opened last year in the Sapp Bros. travel center in York, Nebraska. A proprietary restaurant owned and operated by Sapp Bros. Travel Centers, Burrito Bros. serves fast-casual Mexican food using fresh ingredients.

Bottles & Barrels plans to open soon at 5331 South 204th Avenue. The self-serve wine and liquor store will feature pour technology similar to what was used in the former Brix store in Village Pointe. The ownership refers to the new business as “a sampling and shopping experience.” Bottles & Barrels will be located in a brand-new retail strip southwest of 204th & Q Street, which also houses a Rusty Taco location.

The Fire Barn, a sports bar and restaurant filled with firefighter memorabilia in Waterloo, plans to close permanently on January 21st after 14 years in business. Travis Harlow, who is Waterloo’s fire chief, owns The Fire Barn and Farmer Brown’s steakhouse across the street. Starting January 24th, Farmer Brown’s will add Tuesday-through-Saturday lunch service.

Radical Minds, a private school that serves kids with autism, has leased 2,565 sq. ft. in a retail building at 2055 North 156th Street, according to Chris Falcone of NAI NP Dodge.

F45 Training will hold a grand opening Thursday, January 19th for its new location at 563 North 155th Plaza in Pepperwood Village. Austin, Texas-based F45 Training is a fitness provider with more than 1,750 studios in 45 countries.

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The “Restaurant & Retail Updates” section is sponsored by Anderson Convenience Market, featuring Quality AMOCO Fuels and serving Omaha since 1952, and proud to announce the return of Quality Amoco Fuels. Look for changes this Summer at Anderson Convenience Market – 8 Omaha area locations!

Learn more about Anderson Convenience market at www.Anderson1952.com

The Big Story

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Local Commercial Real Estate Market Stats

While we see some softening in the Omaha commercial real estate market, overall conditions remain positive, according to NAI NP Dodge’s 2022 4th Quarter Market Overview.

Several new developments were announced or started during the final quarter of last year.

Just before the 4th quarter ended, crews finished demolition of the W. Dale Clark library at 14th & Farnam Street. That will pave the way for construction to begin on Mutual of Omaha’s 44-story headquarters building this month. Also during the quarter, the City of Omaha approved $440 million in bonds for the planned downtown-midtown street car.

The Child Saving Institute announced a $46 million expansion of its campus at Saddle Creek Road & Dodge Street. Children’s Hospital & Medical Center announced an $89 million pediatric behavioral health hospital just west of its existing buildings. Construction has started on a 5-story, mass-timber-built office building at 1501 Mike Fahey Street in the Builders District.

The report summarized key statistics for three critical real estate submarkets: office, retail and industrial.

The office market ended the 4th quarter of 2022 with a vacancy rate of 7.7 percent, which was up from last quarter. Absorption over the past 12 months was -83,000 sq. ft., much worse than last quarter. Rental rates were up slightly to $23.75.

The report takes into account 47.6 million square feet of office space in the Omaha market. There is 480,000 square feet of office space under construction at this time, up from last quarter.

Retail vacancy was 4.6 percent, down from last quarter. Rental rates were up somewhat to $15.43 per square foot. The 12-month net absorption was positive 937,000 sq. ft. at the end of the quarter, much higher than the previous quarter.

Approximately 64.3 million sq. ft. of retail space was considered for this report. At this time, 361,000 sq. ft. of retail space is under construction, which is up from the end of the prior quarter.

The industrial market has a vacancy rate of 2.0 percent, which is down from 2.2 percent last quarter. Rental rates are $7.27, which is up slightly from last quarter. The 12-month net absorption is 5.3 million sq. ft., which is down from last quarter.

The industrial sector continues to thrive. The total market size is 103 million sq. ft. More than 2.7 million sq. ft. of industrial space is under construction right now, which is just a little less than last quarter.

This section is sponsored by RENZE. For over 128 years, we have been providing our clients with innovative solutions for interior corporate and retail branding, as well as unique exhibits and graphics for tradeshows and events. With leading-edge equipment and quality craftspeople working out of our 90,000 sq. ft. facility, we partner with you to help create your vision. See a wide variety of our work HERE!

Grow Omaha Snippets

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Construction is expected to begin in about a week on the Blair bypass, a new highway that will connect U.S. Highways 30 and 75 south of the city. The purpose of the new bypass is to remove semi-truck traffic from downtown Blair’s main thoroughfare. Between 3,000 and 3,600 large trucks roll though downtown Blair each day.

FNBO will celebrate the opening of its new Gretna location at 20640 Highway 370 with a ribbon cutting ceremony at 4 p.m. on January 17th, hosted by FNBO and the Gretna Area Chamber of Commerce. FNBO’s newest branch will provide a full-service offering, including traditional banking products, small business products, wealth services and mortgage loans.

The Omaha City Council approved “The Square,” a 4-story apartment project at 30th & Leavenworth, according to the Omaha World-Herald. An existing building will be demolished before construction can begin in April. Completion is planned for July 2024. The $18 million building will have 73 units for rent. Prices would start at $1,188 for a studio and go up to $1,973 for a two-bedroom unit. The project was awarded $1.8 million in Tax Increment Financing.

Construction is coming along nicely on Noddle Companies’ expansion of the Nebraska Medicine Village Pointe medical campus. A 3-story, 120,000 sq. ft. fourth building is expected to be completed this spring at 175th Plaza & Burke Street. The building will allow Nebraska Medicine to offer new medical services and expand existing clinical programs.

Grow Omaha Snippets are brought to you by Omaha Car Care with four metro area locations – 131st & Dodge, 58th & Center, 85th & L and 144th & Harrison.

Omaha Car Care “We’ll be along for the ride.”

Business News

Local Business News Sponsored by FranNet of The Heartland:

Real Estate News from CoStar – Inflation and the higher interest rates accompanying it have finally begun to curtail the largest commercial real estate construction boom for any property type in the U.S. since the 1980s.

About 134 million sq. ft of industrial property development began construction during the final three months of 2022. This marked a steep drop of almost 40% from the quarterly tally averaged during the preceding 12 months, and was the lowest quarterly construction-starts total recorded since the initial outbreak of the Coronavirus in early 2020.

First National of Nebraska is planning to acquire Minneapolis-based Northland Capital Holdings, an underwriter of tax-exempt bonds in the Midwest. The company employs 170 people in seven states. The acquisition is pending regulatory approval and is expected to be completed in the first quarter of this year. Northland Securities will operate as a subsidiary of Omaha-based First National of Nebraska.

If you think airfare prices are high right now wait until all the newly negotiated labor wage increases are added on top of every new ticket price, says Steve Glenn, chairman of Lincoln-based Executive Travel. Labor is the largest cost for airlines alongside fuel. “If every labor union is as successful as the Delta pilots, we could see ticket prices skyrocket out of site in 2023. The bottom line is this….If you are planning to travel this year the earlier you book your reservation the better the prices.”

Berkshire Hathaway continues selling off its BYD shares despite chairman Warren Buffett’s positive comments about the Chinese electric car maker in the past, according to Associated Press. Berkshire said in a filing with the Hong Kong stock exchange that it had sold another 1 million shares, leaving it with 13.97% of the Hong Kong-issued shares of BYD. Berkshire is only required to disclose the sales when its ownership stake decreases into another percentage point such as when it crossed below 14% here. Berkshire has cut its stake from 225 million shares in August to 153.3 million shares as of this latest filing.

Valmont Industries, Inc. has entered into a supply agreement to provide mechanized irrigation equipment and innovative technology for multiple agricultural development projects in Africa. The agreement will harness the market-leading solutions of Valley Irrigation, a Valmont company, to help meet the escalating global demand for more efficient and reliable food production, and support national investments in agriculture to feed growing populations and address ongoing food security concerns.

Midlands Scientific has leased 20,000 sq. ft. at 11741 Centennial Road, according to John Meyer of NAI NP Dodge. The laboratory products distributor joins Metropolitan Warehouse Company in this fully leased industrial building in La Vista.

This section is sponsored by FranNet of The Heartland, the local, trusted franchise experts. They are “in the business of helping you get into business!”

Grow Omaha Residential

The Truth About Negative Home Equity Headlines

By Joe Finlay

Home equity has been a hot topic in real estate news lately. And if you’ve been following along, you may have heard there’s a growing number of homeowners with negative equity. But don’t let those headlines scare you.

In truth, the headlines don’t give you all the information you really need to understand what’s happening and at what scale. Let’s break down one of the big equity stories you may be seeing in the news, and what’s actually taking place. That way, you’ll have the context you need to understand the big picture.

Headlines Focus on Short-Term Equity Numbers and Fail to Convey the Long-Term View

One piece of circulating news focuses on the percentage of homes purchased in 2022 that are currently underwater. The term underwater refers to a scenario where the homeowner owes more on the loan than the house is worth. This was a huge issue when the housing market crashed in 2008, but it’s much less significant today.

Media coverage right now is based loosely on a report from Black Knight, Inc., which says, “Of all homes purchased with a mortgage in 2022, 8% are now at least marginally underwater and nearly 40% have less than 10% equity stakes in their home…”

Let’s unpack that for a moment and provide a bigger perspectivee. The data-bound report from Black Knight is talking specifically about homes purchased in 2022, but media headlines don’t always mention that timeframe or provide the surrounding context about how unusual of a year 2022 was for the housing market.

They also don’t mention specific cities or areas of the country. In 2022, the median home price in Omaha increased about 11 percent, and the appreciation rate reached its max around March-April. Since then, the rate of appreciation has been slowing down.

Omaha homeowners who bought their houses last year right at the peak or those who paid more than market value in the months that followed are more likely to be marginally underwater. However, home prices in Omaha remained steadier than other areas of the country. Cities in the mountain states saw such high price increases that they were ultimately unsustainable.

So, what does that mean for those who purchased a home in 2022? It’s important to remember owning a home is a long-term investment, not a short-term play. When headlines focus on the short-term view, they’re not necessarily providing the full context.

Typically speaking, the longer you stay in your home, the more equity you gain as you pay down your loan and as home prices appreciate. With recent market conditions, you may not have gained significant equity right away if you owned the home for just a few months. But it’s also true that many homeowners who recently bought their house are unlikely to be looking to sell quite yet.

Bottom Line

As with everything, knowing the context is important. If you have questions about real estate headlines or about how much equity you have in your home, let’s connect.

Grow Omaha Residential is developed and sponsored by Joe Finlay, REALTOR with NP Dodge Real Estate.

Grow Omaha University

Leadership & Sales Insights for Ambitious People

Compiled by Grow Omaha co-founJeff Bealsder and sales trainer 

Sponsored by MyStaff, Inc.

Leadership & Management

What’s a typical professional’s most productive day of the year? It’s the day before they go on vacation! On that last day before a trip, people are tunnel-visioned on what must be completed before they leave, says business author Lee Salz. “Imagine if you had that level of priority management every day. How much more successful and productive would you be?”

As a leader, it’s important that you ensure your team does the right work in the right way at the right time, says best-selling author Anthony Iannarino. We want to give people autonomy, but without disciplines as guard rails, we fail individuals.

“When people work for and with us, we have a duty to help them succeed, even if it means providing strong direction,” Iannarino says.


Whatever your reason for disliking sales objections, the first step in overcoming them is to not fear them. Objections are not necessarily bad – they’re a normal and healthy part of the selling process. Some objections are simply questions dressed up as problem statements. Other objections are stalling or delaying tactics. Some are “cries for help,” as prospects are stressed out and they desperately want you to prove that you’ll make their life better while not ripping them off.

Objections during prospecting time are defense mechanisms the buyer uses to protect their time. If you work in B2B sales, you prospect decision makers, people who are so busy, they’re overwhelmed. Time is their most precious resource and it’s in short supply. That’s why busy decision makers will say anything to prevent you from getting 30 minutes of their precious time.

Another kind of objection is used as a surprise attack to proactively put the prospective client in the driver’s seat instead of you or to proactively hurt your negotiating position before negotiating even begins. It can happen at any time during the process and is used by prospects to fluster you or throw you off your game. Examples of this objection include:

“Just so you know, we’re a very small company, so we can’t pay what a lot of your other clients pay.”

“Before we get started, what kind of fees will you charge, because if I can’t afford you, I don’t want to waste our time.”

“I don’t think you have as much experience working with companies in our industry. That’s why we worked with your competitor in the past.”

“Just to be transparent, I’m not going to sign anything today.”

No matter when you get an objection, there are a few important things you must do immediately:

First of all, DO NOT PANIC.

Do not get emotional. Do not get irritated or inconvenience. Do not get defensive. Do not deviate from your game plan. Objections aren’t personal; they’re simply telling you that you haven’t created enough value for them to give you time.

Another important piece of advice: do not slam the door.

In other words, some salespeople will get angry at the client or try to put a guilt trip on them, saying things like, “I’ve put so much time and effort into working with you and I can’t understand why you would do this to me.”

Any sort of negative response is likely to drive a wedge between the prospect and you. Keep in mind that even if you lose a deal right now, if you play your cards right, you might get a deal later because you’re persistent and completely professional.

When you get an objection, first say something that shows you can relate to what the prospect is saying. Next, ask some clarifying questions. Third, minimize the objection, and then move forward.


“A true leader asks advice, when he has time to think; but he never asks advice in a crisis. He acts.” – Herbert N. Casson

Grow Omaha University is sponsored by MyStaff Inc, a locally owned staffing firm whose purpose is helping Nebraska companies recruit for corporate office positions.

My Staff Inc – Our team helps you find yours!

Upcoming Events in the Metro

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Big Canvas Improv on January 13th: Bring your family and friends for a night filled with laughter! Big Canvas will be performing at the Blackstone Theater on the second, third, and fourth Friday nights in January. Check out the premier of their short-form improv comedy show on January 13th!

2023 Tattoo Arts Festival from January 13th to 15th: Come get tattooed by 350 of the world’s best tattoo artists, including the top local, national & international artists. Meet & Greet TV celebrities from Ink Master, Tattoos After Dark, and Best Ink. Tattoo TV stars will be on hand to tattoo the public! In addition, there will be numerous vendors with everything from industrial supplies to clothing, artwork & jewelry. This event has something for everyone!

Modus Coworking Lunch and Learn on January 18th: This free event is only happening for a limited time so make sure to take advantage! Modus Coworking is hosting Lunch and Learns to support entrepreneurs and small business owners. Lunch is catered in for your enjoyment! Come connect with others within the community and increase your knowledge of a wide range of topics that benefit you!

Explorer Series Wine Class on January 19th: Join the Explorer Series of wine classes, typically on the third Thursday of every month. This is a great opportunity to take a little bit deeper dive into a particular wine region or style of wine. This month’s class features guests from Bodegas Lustau and you’ll be exploring Sherry wines! Learn about the history, grape varietals, and what makes Sherry wines unique.

Fireside Chat with Greg Harris, CEO of Quantum Workplace on January 19th: Come learn and connect with CEO of Quantum Workplace Greg Harris! Quantum Workplace is an Omaha-based leader in employee feedback software. If you’re interested in technology innovation and company culture, this is the event for you. You’ll have the chance to ask Greg questions and network with others interested in technology, innovation, startups, and company culture.

This Upcoming Events section is sponsored by Eagle Mortgage Company, is a locally owned and full-service mortgage company in Omaha.

Eagle Mortgage can help you realize your dream of owning a home.

People in the News

Sponsored by Baird Holm Attorneys at Law

a beautiful blue and white house with a green lawn
digital rendering of Flatiron District project buildings

NAI NP Dodge has added Will Schneidewind as a licensed commercial real estate salesperson. An Omaha native, Schneidewind graduated from Nebraska Wesleyan University last month with a Bachelor of Science degree in Business Administration and played catcher on the varsity baseball team. He joins NAI NP Dodge after interning with the company last summer. He also worked construction/carpentry and had his own lawn service while going to school.

Scoular CEO Paul Maass has been appointed to the Federal Reserve Bank of Kansas City’s head office Board of Directors. Prior to this appointment, he served on Federal Reserve Bank of Kansas City’s Omaha Branch Board of Directors in 2022. Maass has been Omaha-based Scoular’s CEO since 2016 and has more than 30 years of experience in the agricultural and food industries.

North End Teleservices, LLC has added Keisha Thomas as vice president of human resources, employee and community relations. Thomas, who has served with the company since its launch in September 2015, holds the title of the first employee ever hired at NET. She joined the company, located at 24th and Hamilton Street, as the human resources project manager.

Ervin & Smith marketing agency has hired John Rost as creative director. He will develop the vision laid out by longtime creative director and current president, Leanne Prewitt. Rost joins Ervin & Smith with more than a decade of experience building brands and strategies for companies and inspiring creative teams to meet ever-expanding business challenges. He will work alongside the executive team, strategists, and account managers to connect compelling creative to the overall goals of each client. He will also oversee the agency’s entire creative team and production which includes design, copy, development, video and public relations.

Brian D. Moore and Jeremy C. Hollembeak have been named as partners at Baird Holm LLP. Moore is a member of the firm’s Labor and Employment section. His practice focuses on employment and workers’ compensation litigation. Hollembeak is an experienced financial restructuring and workout advisor who concentrates his practice on distressed investment opportunities and related litigation.

Mayor Jean Stothert has named Gerald Kuhn as the City of Omaha director of human rights and relations. Kuhn has held the assistant director position for five years and succeeds Dr. Franklin Thompson, who retired in July.

The “People in the News” section is sponsored by Baird Holm LLP. Baird Holm’s dedicated team of real estate lawyers has extensive experience in all aspects of real estate law, including purchases, sales, zoning and land use, leasing, and dispute resolution. Click HERE for more information.

Wall Street: The Week in Review

with George Morgan

The author is founder of Morgan Investor Education of Omaha.

Sponsored by Baird Holm Attorneys at Law

Views and opinions expressed herein are solely those of the author.

For the past few weeks, Mr. Market has been channeling Goldilocks. He has fixated on the Fed’s every twitch and parsed every jot and twiddle put out by Wall Street’s brown nose media.

To him, everything is either too hot or too cold. When it’s too hot, he slams stock prices, like Gallagher smashing a watermelon. Then when it’s too cold, he gives stock away, like beer at a frat party.

If you listen to Cramer and his minions, “investors” are responsible for Mr. Market’s radical mood swings. Taking a line from the best movie ever made – Butch Cassidy and the Sundance Kid – “who are those guys.”

It’s not mom and pop. Over the course of the past year, the $12 trillion that mom and pop hold in the big three discount brokerage firms has seen less than a 1% redemption. Mr. Market’s enablers are hedge funds, computer traders and the 500 guys on Morgan Stanley’s trading floor – none of whom give a s–t about the economic fundamentals.

These guys program their computers with algorithms that respond to trigger words such as changes in the unemployment rate or an uptick in the inflation rate. When the computers see these words, they are programmed to either buy or sell. No questions asked. Bottom line: It’s the professionals who are responsible for the volatility, not mom and pop.

For those of you who, like myself, have no social life and want to explore this phenomenon, wait for a day when there’s going to be a big economic data release. Go to yahoo.com. Pull up the chart of the S&P 500 or NASDAQ and watch what happens the instant the news is released. You get a chart that looks like my heart rate when I receive the property tax bill.

Jason Zweig’s article in the WSJ is about the long-standing position of Wall Street and academia that proper diversification is a portfolio of 60% stocks and 40% bonds. When this mix changes, because one of the asset classes outperforms the other one, you rebalance. Jason points out that in 2022 this approach sucked because of the implosion of bond prices. When I was a young buck of a broker, I thought this was a dumb idea.

Why sell the good stuff and buy the bad stuff? But, in my golden years, I have come to understand that investing is like pickleball. One size does not fit all. The major advantage of the 60/40 split is not an increase in performance, but a reduction in volatility. Jason concluded by opining that those using this approach may have had a bad year, but that does not necessarily mean it’s time to give up on it. Investment styles, like the Cornhuskers, go through periodic slumps.

Have You Watched Grow O on Video Yet?

Jeff Beals, Trenton Magid and a guest in the KFAB 1110 Radio Booth

The Grow Omaha radio show broadcasts live every Saturday morning at 9:00, but now you can watch videos of each episode instead of just listening.

Grow Omaha’s brand-new website features video footage shot inside the radio studio during each week’s show!

Videos include News of the Week, Lightning Round, guest interviews, and “Grow Omaha Uncut,” a behind-the-scenes look at what happens during commercial breaks.

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