Weekly Market Report – January 4, 2024

Izzy’s Pizza Bus, a popular local food truck, plans to open a bricks-and-mortar location this May in the Felius Cat Café space at 522 South 24th Street downtown. Felius is moving to a new location. Izzy’s will continue to operate its mobile pizza bus.

Charred Burger + Bar plans to open a second location this year near Cabela’s in La Vista’s Southport area. The original location is at 1150 Sterling Ridge Drive near 132nd & Pacific Street.

Signage is now in place at a former Starbuck’s location in Countryside Village near 87th & Pacific Street. Saddle Creek Breakfast Club will move there from its original location at 1540 North Saddle Creek Road in mid February.

Veg.Edible has opened at 2740 North 61st Street in Benson. The fast-casual, take-out eatery and bakery is 100-percent vegan, gluten-free and nut-free (except coconut) and has soy-free options. Owner Stacie Van Cleave told KETV she started Veg.Edible “to spread awareness about allergen-friendly options and the importance of safe food handling.”

Dolomiti Pizzeria & Enoteca has officially opened inside the Ashton building at 1125 North 13th Street in Millwork Commons. Dolomiti features wood-fired sourdough pizza with a northern Italian influence with a variety of appetizers, salads and desserts. The restaurant is open for lunch and dinner.

Skin Experts will hold a ribbon cutting January 16th for its new location at 7474 Towne Center Parkway in Papillion. Skin Experts “combines revolutionary technology from Europe & Asia with carefully curated ingredients that work synergistically to help skin look fuller, fresher and younger, creating results you can really see.”

Spotlight Bridal will hold a ribbon cutting January 19th for its new bridal boutique in the Venues at the Granary located at 555 Granary Plaza in Ralston.

Green Beans Coffee is closing its Bellevue location at 3512 Samson Way. The west Omaha location at 167th & Harrison Street will remain open.

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

4th Quarter Commercial Real Estate Stats

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

Office Market

The 48.6 million sq. ft. office market ended the 4th quarter of 2023 with a vacancy rate of 7.2 percent, which was up from last quarter. Absorption over the past 12 months was 287,000 sq. ft. Rental rates were up to $24.60. Approximately 1.3 million sq. ft. of office space is under construction at this time, about the same as last quarter.

Retail Market

Approximately 65.6 million sq. ft. of retail space was considered for this report, which is based on CoStar data. At this time, 383,000 sq. ft. of retail space is under construction, which is up from last quarter. Vacancy was 4.7 percent, up slightly. Rental rates were up to $17.60 per square foot. The 12-month net absorption was 424,000 sq. ft. at the end of the quarter, down from the previous period.

Industrial Market

Omaha’s industrial sector continues to be strong. The total market size is $107 million sq. ft. Approximately 5.1 million sq. ft. of industrial space is currently under construction, not quite as much as the previous quarter. Industrial vacancy is 2.2 percent, which is even lower than last quarter. Rental rates are $7.81, which is up slightly from last quarter. The 12-month net absorption is 3 million sq. ft., which is up from last quarter.

Development Projects

During the fourth quarter, Oakview Mall changed ownership. Felix Reznick of 4th Dimension Property, purchased the 859,000 sq. ft. mall, which he had previously co-owned with Kohan Retail Investment Group. Reznick plans to add new entertainment concepts and children’s entertainment.

The Opus Group started construction on the Storz Warehouse, a speculative, industrial/flex project at 5902 North 9th street. The 202,000 sq. ft. building will sit on an 11.5-acre site near Eppley Airport.

The former Ethnic Sandwich Shop building at 13th & Pine Street in Little Bohemia has been demolished. Work is now beginning on the Boho Flats project. The 4-story, mixed-use building will have 59 market-rate apartments and 5,000 sq. ft. of ground floor retail space.

A tower crane went up on the site of a former 24-Hour Fitness building at 120th & Miami Street in the North Park development. The old fitness club is being converted into a 5-story apartment building with 160 units.

R&R Realty Group broke ground on a 286,000 sq. ft. warehouse building as part of its R&R Commerce Park South development in Sarpy County. Located southeast of 156th & Schram Road, R&R Commerce Park South will eventually consist of six buildings totaling more than 1.3 million square feet.

The Omaha City Council approved rezoning requests necessary to pave the way for a 4-story, 195-unit apartment building near Saddle Creek Road & Mason Street. The Midtown site is immediately south of a Baker’s Supermarket and west of the BOS Apartments. The project includes a small amount of commercial space. Construction should begin next summer with completion planned for 2026.

Another multifamily building is coming to North Downtown. The Nicholas Apartments will be a 5-story, mixed-use building on the east side of 12th Street between Nicholas and Izard streets in the Millwork Commons district of North Downtown. Plans call for 78 market-rate apartment units and 12,429 sq. ft. of first-floor commercial space divided into six bays.

A portion of the first floor will be an open-air passage aligning with the platted alleyway, which will then connect with a pedestrian oriented passage that will extend through the neighboring Dizzy Mule redevelopment (under construction to the west) and connect with the HotShops a little further west.

Steel beams are now going vertical east of the Holland Performing Arts Center near 12th & Dodge Street. That’s where the $103 million Tenaska Center for the Performing Arts is under construction. When the 3-story building opens, Omaha Performing Arts will have extra rehearsal, workroom and classroom space in order to expand current and new programming.

Construction is going vertical on Bankers Trust Nebraska’s future 2-story office building at 19202 Davenport, which is immediately southwest of 192nd & West Dodge Expressway.

A non-descript, 3-story, 48,000 sq. ft. office building at 7101 Mercy Road was demolished this week. In its place, plans call for a 4-story, 200-unit apartment building with an accompanying 5-level parking garage. Construction is scheduled to start in March with completion planned for September of 2025.

CHI Health Center Omaha is adding a new courtside lounge to serve drinks to guests on the floor level of the venue. Anticipated opening is sometime later this year.

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Warren Buffett, chairman of Omaha-based Berkshire Hathaway was number one on The Chronical of Philanthropy’s annual list of biggest charitable donors for 2023. Buffett gave 1.5 million shares of Berkshire Hathaway Class “B” stock valued at $541.5 million to the Susan Thompson Buffett Foundation, named for his first wife, who died in 2004, according to Business Insider.

NEI Global Relocation of Omaha earned the highest average score (net satisfaction percentage) in four categories in the 22nd Annual Relocation Managers Survey conducted by Trippel Survey and Research, LLC. Additionally, NEI tied for first in two other categories.

Valmont Industries, Inc. will participate in the CJS Securities New Ideas for the New Year Conference. Avner M. Applbaum, president and Chief Executive Officer, and Timothy P. Francis, interim Chief Financial Officer, will host virtual investor meetings throughout the day on January 10th.

State Sen. John Fredrickson of Omaha has introduced Legislative Bill 856, which would make all child care workers eligible for child care aid, regardless of their income, according to Nebraska Examiner. Nebraska day care workers passing a criminal background check would be eligible for aid if they work at least 20 hours a week at a licensed day care facility or in-home day care. Based on a Kentucky law, the bill is an attempt to address Nebraska’s chronic worker shortage.

After falling below growth neutral in November, the Creighton University Mid-America Business Conditions Index, a leading economic indicator for the nine-state region stretching from Minnesota to Arkansas, bounced above the 50.0 growth neutral threshold in December. Dr. Ernie Goss’ index climbed to 50.3 from 42.2 in November.

The U.S. national debt topped $34 trillion for the first time on December 29th, according to CNN. That disturbing milestone comes just three months after the national debit passed $33 trillion.

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LEADERSHIP & MANAGEMENT

Many executives privately fret that workers are too preoccupied with flexibility and work-life balance and believe that a more gung-ho attitude will be required to take on the business uncertainties in 2024, according to the Wall Street Journal. Though stocks are climbing and inflation has eased, a majority of CEOs expect macroeconomic conditions to worsen over the next six months.

Speaking of work expectations, Wayfair CEO Niraj Shah recently sent employees a memo asking them to not “shy away” from long hours, “blending work and life,” and “being responsive.” Laziness, he noted, is rarely rewarded with success. Predictably, the message was not well received, but many executives quietly agree.

Approximately 92 percent of New Year’s resolutions fail, according to sales author Anthony Iannarino: “If you really want to make a change, the best strategy may be putting it on your calendar and building a system.”

Born between the mid-1990s and early 2010s, Generation Z now commands more than $450 billion in spending power, an average per consumer of $8,894, according to Snapchat Business.

Forty-five percent of companies plan to remove bachelor’s degree requirements from some job postings in 2024 to foster a more diverse workforce and increase applications, according to The Hustle. This adds to the 55 percent of companies that removed degree requirements in 2023 — especially for entry- and mid-level roles.

SALES

Now is a good time to reach out to past clients. It could be a customer who stopped buying from you several years ago, but they’re still familiar with you, says sales author Mark Hunter. Maybe they stopped buying from you and you thought the reason why they stopped was reason “x,” but it was actually a completely different reason. There could be a lot of latent business in the those old customers.

Only three sales verbs matter: Create. Advance. Close. So says sales author Mike Weinberg. If you’re spending inordinate amounts of time “working” on good things (including serving existing accounts or playing good corporate citizen) that keep you from creating, advancing, and closing sales opportunities then you have a problem. Eighty percent of your work week should be focused on those three verbs.

BradBird gives you an edge when competing for customers. There are 40 modules, each a different topic. Modules include a video and matching workbook. It’s only $79 per month and group discounts are available. You can cancel at any time. If you’re an action-taker, click HERE and get started now!

WISDOM

“Keep your face always toward the sunshine, and shadows will fall behind you.” – Walt Whitman

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Did you know that Southwest Airlines (36.3%) has the biggest share of passenger traffic at Eppley? It’s followed by American (19.4%), United (18.2%), Delta (18.0%), Allegiant (3.3%), Alaska (2.4%), Frontier (2.1%) and Sun Country (0.2%). – as of November 2023.

Did you know that the local board of health required that all school children in Omaha were to be vaccinated starting in 1901? At the time, smallpox cases were spreading across the metro area. The vaccinations made a positive impact right away. Source: Howard A. Hamilton

Did you know there are more than 460,000 individuals in the Omaha metro area with either 401(k) or Self Directed IRA accounts? The combined value of those accounts is $150 billion. Source: George Morgan of Morgan Investor Education.

This section is sponsored by Lockbox Storage, an affiliate of Omaha-based McGregor Interests Inc. We provide storage solutions for all of your storage needs. Our facilities have full-time managers and bright lighting to provide superior security for your belongings. In addition to space for rent, we also provide packing supplies, protection plans and locks along with complimentary handcarts and dollies. Visit LockBox Storage and let us help you with all your storage needs.

Monday Night Mocktail Class on January 8th: Kick off the new year with a Monday night mocktail class! Celebrate Dry January with a friend, partner or solo in creating beverages for you to enjoy. Join others for a refreshing and alcohol-free experience, perfect for the month of resolutions. Reserve your tickets now!

Lunch & Learn | Creating & Leveraging Custom GPTs for Your Business on January 9th: Elevator Co-Warehousing is hosting another lunch and learn at their facility! In this one-hour training session, they’ll cover the basics of creating and leveraging custom GPT AI instances. We will also look at possible use cases and possibilities for integration into internal processes and lead generation. The session will conclude with a Q&A segment to address participant-specific applications and best practices. A light lunch is provided or feel free to bring your own!

Singles Whiskey and Wine Tasting on January 10th: Join Forever Smitten for a special event designed for singles to enjoy a unique tasting experience combining wine and whiskey. The event will explore whiskies finished in wine barrels and the wine varietals aged in these barrels. Registration is limited, so don’t miss out on this opportunity to connect with like-minded individuals through curated and distinctive experiences!

Modus FREE Coworking Day and Happy Hour on January 11th: Experience the freedom of coworking at Modus’s monthly FREE coworking day, held every second Thursday of the month from 8 a.m. to 5 p.m. Work in a vibrant atmosphere with high-speed wifi and take advantage of our office amenities. And that’s not all – enjoy the delicious Amateur Coffee and Artemis tea throughout the day. As the day winds down, stick around for our complimentary happy hour starting at 4 p.m., where networking opportunities abound. Indulge in free wine and snacks, and connect with fellow professionals in a relaxed setting.

Night Light: Glow on January 11th: Play at adults-only Thursday nights with exhibits and provocative programs that will expand your brain and spark joy. As the nights grow longer, make plans to join others for ‘Night Light Glow’ — a joyful exhibition of light, art and science. Explore glowing art from international and local artists, and exhibits and activities that play with light. During Night Light Glow, you’ll be able to explore bioluminescence, glowing chemistry experiments, the human need for light in the darkness and more!

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

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HDR, a global, employee-owned architecture and engineering firm, has named its new chief executive officer. President and Chief Operating Officer John Henderson succeeds chairman and CEO Eric Keen, who will continue as chairman of the company’s board of directors. Replacing Henderson as president and COO is Neil Graff, who previously served as the firm’s director of U.S. and North America operations.

Lutz has added Katie Adler, Joe Sloss and Matt Topolski. Adler is an administrative assistant and graduate of the University of Nebraska at Kearney. Sloss is s senior accountant in the client advisory services department. He received a bachelor’s degree from the University of Northern Iowa. Topolski is a senior software engineer. He has more than 11 years of software, DevOps and IT experience.

Baird Holm LLP has announced that Patrick Bartman, Lee Greenwald, Morgan Kreiser and Spencer Murphy have been elected to partners within the firm. Bartman’s practice focuses on commercial real estate and renewable energy. Greenwald’s practice focuses on commercial real estate and renewable energy. Kreiser practices in the areas of employee benefits, ERISA, tax law, and public employer retirement systems. Murphy resolves complex commercial and contractual disputes.

Nebraska Gov. Jim Pillen announced that Douglas County Election Commissioner Brian W. Kruse has been reappointed, according to WOWT. This is Kruse’s third term in the position, which has no term limits. He has been serving as commissioner since 2016 when he was first appointed by then-Governor Pete Ricketts.

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.

Many consider John Maynard Keynes the greatest economist of the 20th century. In my little slice of paradise, greatest economist is an oxymoron.

Keynes wrote his magnum opus, “The General Theory of Employment, Interest and Money” in the middle of the Great Depression. In it, he outlined how government deficit spending could pull the world out of its economic malaise.

The part of Keyes’s insight that politicians ignore is that once the economy returns to full employment, they must retire the debt.

In addition to being a great economist, Keynes was also an astute investor. He made a fortune for himself and his alma mater, Cambridge College. While wearing his investor’s hat, Keyes brought us two revolutionary paradigms. The first one is animal spirits. Keynes claimed that there are times when the stock market operates as though investors were listening to some distant animal spirit. As a result, the market operates emotionally and appears to be totally irrational. Sounds a lot like Ben Graham’s Mr. Market.

The second piece of Keynes’ investment genius was his analysis that investing is like choosing the winner of a beauty contest. He believed that analyzing a company’s financial condition is a waste of time. He postulated that stock picking was like selecting the winner of a beauty contest. Don’t choose the one you think is the best looking. Choose the one you think the judges will choose. Your vote doesn’t count; only those of the judges do! (The General Theory, Chapter 12, page 156)

A recent article in the Wall Street Journal tells me that Keynes is alive and well. The title of the article is “Investors’ Optimism Has the Fed Uneasy.” The author interviewed several Fed officials, who said they think the market is ignoring the true state of the economy. For 2023 the S&P had a 20 percent gain, while the Nasdaq has soared more than 40 percent. This reflects the belief among investors that inflation has been conquered and the possibility of a recession is off the table. None of the members of the Federal Reserve’s Open Market Committee agrees with these positions.

Jim Cramer and his talking-head acolytes can argue all they want about what the Fed can or should do. The Fed’s geeks will continue to try to convince the world that they are the only ones with the magic crystal ball. But – Keynes was right – there is only one vote that counts: Mr, Market’s.

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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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