Weekly Market Report – July 6, 2023

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

ANNOUNCEMENT – Next week’s Grow Omaha Weekly Market Report will be delayed by one day. Instead of the typical Thursday afternoon distribution, the newsletter will be published on the afternoon of Friday, July 14th.

Grow Omaha held a live remote broadcast this past Saturday from the future location of B&G’s Tasty Foods at Nebraska Crossing, and we sampled several menu items. For those of you who remember B&G’s when it operated for many years near 78th & Dodge Street, we can assure you – the tastees are as good as ever. Several new items have been added to the menu. Opening is expected to occur within the next week or so.

A future Culver’s burger-and-custard restaurant building is now enclosed and moving closer to completion on a pad site adjacent to the new Gretna Hy-Vee store near 192nd & Highway 370.

BW’s Bistro has opened at 101 B Street in Cedar Creek, Neb., a small village on the Platte River in Cass County just northeast of Louisville. The restaurant offers pizza, pasta, BBQ, salads, smash burgers and ice cream.

Copps Pizza Company now offers all-you-can-eat brunch buffets at both its Papillion and west Omaha locations Sundays from 10 a.m. to 1:30 p.m.

The ribbon cutting for On the Border Mexican Grill & Cantina in Papillion is scheduled for July 18th.

Krave Gym plans to open its first Nebraska location this fall in a 3,611 sq. ft. space near 203rd & Pacific Street, according to Investors Realty. Krave Gym has three existing locations in central Iowa.

Don & Millie’s, which has six Omaha-area locations and two Lincoln locations, is expected to become 80 percent employee-owned within 20 years — at no cost to the employees, according to the Lincoln Journal-Star.

The Winery, a wine shop and deli at 741 North 98th Street in Clocktower Village, has introduced a monthly wine club. For $50 per month wine club members get two seasonal bottles of wine and are invited to monthly socials to pick up their selections. Held every third Thursday of the month, the socials include a free glass of wine, education about the month’s varietals, fresh charcuterie and live music.

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

2nd Quarter Commercial Real Estate Stats

And in the blink of an eye, the year is already half over. It’s time to assess the health of the Omaha commercial real estate market at the midpoint of 2023.

Despite broader concerns commercial real estate and the national and global levels, the market here in Omaha is still quite strong, according to the NAI NP Dodge second quarter market report, which takes into consideration the office, industrial and retail submarkets.

As has been the case for a few years now, the industrial market (warehouse, logistics and manufacturing properties) is the star of the show.

The industrial market has a vacancy rate of 2.6 percent, which is the same as last quarter. Rental rates are $7.72, which is up slightly from last quarter. The 12-month net absorption is -2.9 million sq. ft., which is down dramatically from last quarter.

The total Omaha industrial market size is 106 million sq. ft. Approximately 3.4 million sq. ft. of industrial space is under construction right now, which is triple the amount we saw last quarter.

The office market ended the 2nd quarter of 2023 with a vacancy rate of 6.9 percent, which was the same as last quarter. Absorption over the past 12 months was -334,000 sq. ft. Rental rates were up to $24.07.

The office data take into account 48.5 million square feet of office space in the Omaha market. There is 1.4 million sq. ft. of office space under construction at this time, up substantially from last quarter.

Retail vacancy was 4.7 percent. Rental rates were up to $16.63 per square foot. The 12-month net absorption was positive 639,000 sq. ft. at the end of the quarter, up from the previous quarter.

A total of 64.8 million sq. ft. of retail space was studied for the market report. At this time, 344,000 sq. ft. of retail space is under construction, which is down a little from the end of the prior quarter.

Brinshore Development plans to demolish the long-vacant Martin Luther King, Jr. Center building at 30th & Emmet Street and replace it with a 4-story, mixed use building. The new building will contain 4,000 sq. ft. of commercial space and 39 residential apartment units, with Low Income Housing Tax Credit requirements to meet affordability standards.

Amenities for the apartment residents include a community room, fitness area, community patio, a community garden and an on-site management office. The property will be leased to a yet-to-be formed entity by the Omaha Housing Authority, the current owner.

Now that Steelhouse Omaha is up and running, construction is about to start on the $103 million “Center for Arts Engagement just across Dodge Street. Workers have installed concrete barricades and fencing around the lawn east of the Holland Performing Arts Center, meaning construction is just about to get underway.

Nebraska has the fourth lowest energy costs in the nation, according to WalletHub. The average Nebraskan pays $384 per month for electricity, natural gas and automotive fuel. The only states with cheaper energy are, in order, the District of Columbia, Idaho and Utah. The most expensive state is Wyoming. Iowa is the eight most expensive with an average of $552 per month.

Metonic Real Estate Solutions of Omaha plans to develop a multifamily property in Gretna Landing, northwest of 192nd & Highway 370. Gretna Landing Apartments will have five buildings on 13.44 acres with 220 units plus a clubhouse, pool, dog park, playground, pickleball courts and outdoor gym.

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.”

The Creighton University Mid-America Business Conditions Index, a leading economic indicator for the nine-state region stretching from Minnesota to Arkansas, expanded above growth neutral for the fifth straight month. June’s score was 50.8, down from 51.3 in May. A reading of 50.0 represents growth neutral.

Tiburon Ridge, a new multi-family development northeast of 180th & Highway 370, recently held a grand opening ceremony, according to Lund Company. The project is still under development, and upon completion, will have a total of 208 apartment units.

The Scoular Foundation has donated $250,000 to Methodist Hospital Foundation to support the Methodist Community Counseling Program. The program offers counseling services to students in each middle school, high school and alternative program in Omaha Public Schools and to community members at locations across Omaha, including all three of Metro Community College’s campuses.

Omaha Drain has leased 2,613 sq. ft. of flex space at 310-330 North 115th Street, according to Maddie Graeve and Will Schneidewind of NAI NP Dodge.

Americans voluntarily left four million jobs in May, according to the Wall Street Journal. That marked a drop of around 500,000 from 4.5 million in November 2021, the highest level in Labor Department records back to 2000. The so-called quits rate—the number of resignations as a share of total employment—averaged 2.5% from March to May, down from 3% as recently as April 2022, and only slightly higher than the pre-pandemic level.

Prices for Nebraska farmland rose 14% in 2023, the fourth consecutive year for an increase and a new record high, according to Nebraska Examiner. The average price for an acre of ag land in the state was $3,835 as of February 1st, up from $3,360 in the previous year.

The Federal Trade Commission has proposed new rules that would ban companies from writing, buying, or selling fake reviews, and suppressing real negative ones, according to The Hustle.

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!”

LEADERSHIP & MANAGEMENT

When making a hiring decision, the number one trait to look for is openness to new learning, according to MindSet, LLC, a Bellevue-based leadership and management consultancy. Eagerness for new learning is even better.

According to Fortune, 60 percent of bosses recently admitted that if they had to make job cuts, they’d come for their remote workers first.

Travel Tip – To alleviate potential problems and delays at the security checkpoint, Smarter Travel media recommends you make sure your luggage is completely empty before you start packing for your next trip. Not only does this ensure that you don’t bring unnecessary bulk and weight with you, but don’t accidentally bring any prohibited items to the airport.

Gen Z’ers, born between 1995 and 2012, are more open to discussing sex in the office, even though they might not be experiencing much of it, according to a Wall Street Journal article by Rachel Feintzeig. Among 18-to-25-year-olds, 30 percent of men and 25 percent of women reported they hadn’t had sex in the past year, A generation ago, the number was only 15 percent.

SALES

Ponder this statement from sales author Anthony Iannarino: “Value Creation is the variable that causes salespeople to easily win deals while others lose deals they believed they would win.”

The same way that endorphins play a role in supporting our physical well-being, they can also improve performance in your sales work, says Keith Lubner in an article for Sales Gravy. Starting and finishing your day with a prospecting block can trigger “sales endorphins” that will help you maintain a positive attitude. In other words, start your day with some prospecting phone calls AND end your day with phone calls.

WISDOM

“Be pretty if you can, be witty if you must, but be gracious if it kills you.” – Elsie de Wolfe

Into the Fire Comedy Show on July 7th: The comedians at Big Canvas Comedy will be entering into a fire of fun insults while doing their best not to get burned. Local comics will showcase their best bits and take a few hits along the way! This show is hosted by Richie B, and he’ll be setting the stage for the other comedians to join in on the improv. Bring a friend to enjoy the show and laugh the night away at Blackstone Theater on July 7th!

Music at Miller Park on July 8th: Get ready for the third annual Music at Miller Park, a thrilling outdoor concert series in partnership with Nelson Mandela Elementary School and community organizations. Join others at the Miller Park Pavilion on July 8th and August 12th for free concerts that will captivate your senses. No tickets required—just bring blankets, chairs, sunscreen, bug spray, food, drinks (including beer and wine*) and leashed pets! Rain or shine, the shows will go on, promising an unforgettable experience!

Ladies Night at Soaring Wings Vineyard on July 8th: A special night just for the ladies! It’s time to pamper yourself and spend a night out with the gals! Soaring Wings Vineyard is hosting a ladies night alongside their beautiful venue. Bring your friends and enjoy some delicious wine, possibly win a prize and spend the night dancing!

Tuesdays on The Green on July 11th: Head to Tuesdays on the Green for an exhilarating experience! The gates open at 5:00 pm, welcoming cruisers and enthusiasts alike. Prepare for an atmosphere filled with play, competition, food and excitement. Join in on the fun with the bocce league by Game On Omaha and in mouthwatering food and refreshing drinks. This event promises non-stop fun that will leave you with unforgettable memories!

Swing for Youth on July 13th: Get ready for a thrilling day of golf at the 29th Annual Swing for Youth Best Ball Golf Tournament! Join us on July 13, 2023, for a fun-filled four-person scramble hosted by Southwest Kiwanis of Omaha. For just $100.00 per person, enjoy golf, a cart, a door prize, dinner and even mulligans included. Excitement awaits as you compete for fantastic hole-in-one prizes sponsored by Beardmore of Bellevue. Not only will you have a blast, but your participation will also contribute to assisting children and their families in Omaha. Mark your calendar and join others at Tiburon Golf Course for a memorable day of golf for a great cause!

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.

Farris Engineering has added Meisam Sedighi as senior power systems engineer. He has 15 years of electrical engineering experience and is a registered professional engineer in three states.

Children’s Hospital & Medical Center has named Dr. Brian Hasley as division chief of pediatric orthopedic surgery. Hasley has been a member of Children’s orthopedic surgery team since 2005.

E&A Consulting, an Omaha-based civil engineering firm, has hired Alicia Grace as an accounting clerk and Josh Abraham as a civil engineering technician in the Lincoln office.

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.

It’s been a quiet week in Lake Wobegon, and that pisses Jim Cramer and his media lackeys off because they don’t have anything to yammer about. In the meantime, Mr. Market says, “I don’t care what you guys think, I’m in a good mood and especially fond of big-cap tech stocks.”

Headline on the front page of the Wall Street Journal reads, “Market defies predictions, but outlook ahead remains murky.” Translation; our predictions for the first six months of the year suck, so here’s what we predict for the rest of the year. See any problem that?

So far this year the S&P is up about 15%, and the NASDAQ a little over 30%. I think the greatest quote of the week came from my nemesis Cramer who yelled at the economists. “Where’s the recession you promised us?”

So, what the hell’s going on?

It can be summed up by what I have been saying for years; Mr. Market is not a rational, calculating individual, but rather an emotional, often irrational organism. What’s up can be summed up in three words: Apple, Nvidia and Tesla. These three stocks have large weightings in both the Nasdaq and S&P, and so far this year, all three have been all over the board.

Tesla has acted like a ride on the cheap wooden Coney Island roller coaster. Everything the Tesla stock has done runs counter to what the analysts predicted. Tesla cut prices and the stock went up. Tesla missed revenue projections, and the stock went up. Tesla missed their deliveries projections and the stock went up. A bunch of Wall Street traders made a bucket load of money from Tesla and the CNBC talking heads said it was overpriced $150 ago.

Apple and Nvidia are part of the story of Chairman Xi’s increased meddling in the Chinese economy. This has lead US tech companies to rethink their relationship with China, both on the supply side and the demand side. As a result, they have brought some production, particularly in chips and pharmaceuticals, back to the United States and are ramping up consumer-tech marketing efforts in India.

Bottom line; the events of the past few months have reinforced my paradigm that Mr. Market will do what he wants to do, and the Wall Street professional and their media enablers will continue to push the narrative that stocks are priced based on economic fundamentals. This provides an opportunity for individual investors with accounts at one of the discount brokerage firms to listen to Mr. Market and respond by actively managing their holdings in index funds.

Quantum Fiber in Omaha, Nebraska, is super-fast, reliable internet. We did away with data caps, bundles, and pricing gimmicks because you don’t want them. Instead, you get game-changing customer service, transparent pricing, and a powerful app for freedom, simplicity, and control over your internet. Quantum Fiber is what internet service looks like when it’s built for the world of you.

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.

Support the Grow “O” Mission

Don’t keep this newsletter to yourself. Forward it to your friends, clients and co-workers. You want to know the real reason we produce this report? It’s to remind Omahans about the vibrant, prosperous and growing city they call home. The more Omaha residents believe in their city, the more successful we’ll all be. Spread the news!

Know of someone else who wants to receive this newsletter? Have them send their name and email address to news@growomaha.com!