Weekly Market Report

Nicole Buntgen, Contributing Writer

Santoro by J. Rivera, has leased a 2,409 sq. ft. space on the east end of the 8601 Dodge Street building, according to NAI NP Dodge, which brokered the lease. The restaurant will be owned and operated by Jesus Rivera, who ran the former Rivera’s Mexican Food restaurant near 120th & Blondo Street. The new space will include an outdoor patio. Rivera plans to open by the end of the year.

Cattle Call, a new tapas and wine bar concept, has officially opened at 1603 Farnam Street in the former Culprit Café space next to The Green Room. Soft opening was June 22nd. The downtown bar serves late-night food and has a retail wine and spirit section. Cattle Call is also the new home for Kathmandu Momo Station, which was formerly in the Blackstone District.

Signage is up for Gambino’s Pizza in a new strip mall east of Cobalt Credit Union and next to West Omaha Dermatology at 11717 Bryan Street, just off Highways 6 & 31 in Gretna. The chain pizzeria has Nebraska locations in Fremont, Kearney and North Bend. An opening date has not yet been announced.

Big Chicken, a fast-casual restaurant franchise owned by legendary basketball player Shaquille O’Neal, plans to expand to Omaha, according to KETV. Local entrepreneurs and father-son duo Tom and Zak Davis will be bringing two Big Chicken locations to Omaha. Opening dates have not yet been announced. Founded in 2018, Big Chicken has 32 locations in 18 states. The closest existing one is in the Kansas City airport terminal.

After five years of operating in west Omaha, Jams Modern American plans to permanently close its location at 17070 Wright Plaza. Its last day will be June 30th. Alice, a cocktail bar on the building’s lower level, will remain open. Jams’ Old Market and Midtown locations will remain open.

The Brunch Box recently opened its second location at 225 North 12th Street in the Capitol District. The restaurant plans to concurrently operate the original Old Market location at 1308 Jackson Street until its lease expires next year.

We have clarification about Thirstea, which we reported on in April. The beverage franchise has been renamed to BobaFi and still plans to open this summer at 3838 North 168th Street, next to Little King and Walmart. The franchise is owned by Brain Tune Café, which has existing Thirstea franchise locations in California and soon in Texas and New Jersey.

Rally House will open its fourth metro area store in August at Westroads Mall in the 6,000 sq. ft., former GO Calendars space by Von Maur on the first floor. Kansas City-based Rally House sells specialty sports apparel, gifts and home décor.

The UPS Store is now open in a former jewelry store space in the Keeline Building at 321 South 17th Street downtown. The historic, 7-story Keeline Building recently went through at $6.8 million renovation.

Rue 21, the teen apparel retailer that went out of business earlier this year, is planning to reopen is store at Westroads Mall. YM, Inc. purchased the brand and will open only 101 of the 540 Rue 21 locations. Westroads is one of those locations. The exact opening date has not yet been announced.

Hooters is the latest casual dining brand to close locations because of challenging market conditions. The Atlanta-based chain shuttered about 40 of its nearly 300 locations this week, according to Nation’s Restaurant News. The Council Bluffs and La Vista locations 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

Nearly a Dozen More Downtown Development Projects Planned for 2024

During a press conference called last week to provide streetcar updates, Omaha Mayor Jean Stothert shared some interesting information that so far hasn’t garnered much attention.

Eleven significant, but yet-to-be-announced, real estate projects totaling $400 million are now in the active planning stages in the urban core. We expect many, or possibly all, of these projects to be announced by the end of the year.

These mystery projects – known to city officials and the respective developers but not the general public – are part of $1.3 billion in real estate development identified so far that will help pay for the future streetcar system that will connect downtown Omaha to the University of Nebraska Medical Center. The streetcar is expected to open in 2028.

If a development within a few blocks of the future streetcar line receives Tax Increment Financing from the city, part of that money will be used to pay for the streetcar. Therefore, in order for the mystery projects to be included, they need to be TIF-eligible and be located close to the line somewhere between the Missouri River and Midtown.

Here’s a generic listing of the projects:

Project 1 – $60 million
Project 2 – $60 million
Project 3 – $50 million
Project 4 – $5 million
Project 5 – $5 million
Project 6 – $7 million
Project 7 – $50 million
Project 8 – $40 million
Project 9 – $30 million
Project 10 – $18 million
Project 11 – $75 million

So, what conclusions can we draw from the limited information we have about these mystery projects? First, exciting days are ahead for the urban core – this is an impressive number of substantial projects.

Second, the future streetcar is already having a positive impact on real estate development even though actual construction is still about a year away. Many of these projects simply would not be built if not for a streetcar, which makes greater urban density possible.

Third, some of these projects are going to be pretty sizable; five of them are $50 million or more. Fifty million won’t build a skyscraper, but it does build an impressive 5-story, apartment-and-retail building.

We do not know what these projects will entail, but it’s a safe bet that most of them will be residential buildings or mixed-use buildings with a residential component.

As far as where the projects will be constructed, rumors have been floating around about more buildings being planned in The Mercantile area, which is the north side of the ConAgra campus. We hear that a hotel might be looking at the grassy lot just north of the downtown Embassy Suites. Additionally, the surface parking on the northwest corner of 10th & Harney Street could be in play.

There’s also plenty of room for development further west along the Harney and Farnam corridors all the way to the Blackstone District. It’s even possible a developer may slip in a multi-family building or two on small parcels very close the recently refurbished Riverfront parks.

By the way, any TIF project in the designated streetcar zone approved since 2022 will contribute toward streetcar construction costs. Here are the already approved projects and their total values. The projects below, along with the mystery projects, constitute the $1.3 billion in total real estate development so far:

Approved in 2022

48th & Dodge (apartments) $82 million
Flats on Howard (apartments) $28 million
1501 Mike Fahey (office) $57 million
Keeline Building (renovation) $7 million
Dizzy Mule (apartments & retail) $43 million
Mutual of Omaha skyscraper $443 million

Approved in 2023

Leavenworth Lofts (apartments) $8 million
Digs Mason Apartments $46 million
Digs Apartments $9 million
Square Apartments $18 million

Approved in 2024 (so far)

Service Life Building (renovation) $3 million
1001 North 12th Street (apartments) $19 million
1508 Marcy Street (apartments) $16 million
The Duo (apartments & retail) $164 million
Millwork Commons Project $19 million

Isaiah Ang, Contributing Writer

The University of Nebraska Medical Center is moving forward with building a 750-stall parking garage just north of the Catalyst Building. UNMC submitted a permit this week for construction of the 7-level parking garage. The City of Omaha will purchase and operate the parking garage upon completion

UNMC is also planning to raze several student-housing structures near 39th & Dewey Avenue during the week of July 24th. Those buildings will be replaced by the $65 million residence hall that the Board of Regents approved in April. Finally, UNMC plans to demolish some vacant buildings it owns on Leavenworth Street on both sides of Barrett’s Barleycorn. There are no current development plans for these properties.

The Saddle Creek Road Streetscape Improvement Project secured some funding this week. Mammel Family Foundation and Sherwood Foundation are donating $250,000 and $2 million, respectively. The project consists of new pedestrian-oriented infrastructure, like sidewalks, lighting, landscaping and benches. Additionally, new parallel parking stalls and bicycle parking will be constructed. The project location is along Saddle Creek Road between 50th and Hamilton streets. Construction is planned to be completed by Summer 2025.

CHI Health plans to redevelopment a 19,060 sq. ft. building at 1127 North 20th Street. The nearly $13.6 million project with rehabilitate the building to serve two primary purposes: it will have space for a community kitchen that will serve current CHI health care facilities and house a dietary call center. CHI is applying for $385,000 in tax increment financing from the City of Omaha.

College of Saint Mary has been named a College of Distinction for the 2024-25 academic year for the third straight year. The honor recognizes a commitment to providing a high-quality undergraduate education that focuses on hands-on learning, strong student-teacher relationships, a vibrant campus life and successful outcomes.

Creighton University is among a short list of institutions nationwide recognized with a new designation from the Carnegie Foundation: Leadership for Public Purpose. An inaugural class of just 25 institutions have been awarded the new elective designation, which was announced June 14. Only 10 are private institutions, and Creighton is the only school from Nebraska represented.

The Omaha City Council will vote on an ordinance in July regarding the purchase of three parking garages with a total of 3,500 stalls located on the current Mutual of Omaha campus at Midtown Crossing. The total purchase price for the three parking garages is $52.2 million. The total reflects a previously agreed price of $15,000 per parking stall. The ordinance states that each parking facility will be administered through separate purchase agreements with closings occurring in late 2025 to early 2026.

The city and the developers of the new Mutual of Omaha tower downtown had entered a Redevelopment Agreement in 2022 that obligated the city to purchase the parking garages from Mutual of Omaha. The purchase is also aligned with the city’s Urban Core Housing and Mobility Redevelopment Plan that outlines how existing and new parking facilities will support the Modern Streetcar project. Additionally, while details are still not known, Mutual of Omaha and Lanoha Development have hinted at redevelopment of the current Midtown campus after the tower is completed.

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AMCON Distributing Company, an Omaha-based convenience and foodservice distributor, has closed its previously announced acquisition of Richmond Master Distributors, Inc., of South Bend, Ind.

See’s Candies, which is owned by Omaha-based Berkshire Hathaway, is launching a limited-time collaboration with McConnell’s Fine Ice Creams. Both companies are based in California and have been around for decades. McConnell’s and See’s will offer their collaborative flavors at all McConnell’s Fine Ice Creams Scoop Shops and online at mcconnells.com for nationwide shipping.

The Catios, a cat boarding facility, has opened at 6153 Military Avenue in Benson. The owner describes it as a “hotel that’s cat-oriented but also designed to house small mammals.”

Conde Nast Traveler recently reviewed The Ritz-Carlton Dallas, Las Colinas, a recently completed hospitality project designed by Omaha-based Leo A. Daly. The historic, 400-acre property includes more than 400 guest rooms set in the rolling hills outside of Dallas.

CarePatrol of Omaha opened earlier this spring at 2916 South 132nd Street in Baker Square. The local franchise is owned by Joel High and works with seniors and their families helping them find independent living, assisted living and memory care communities. Because the senior living communities pay for this service after an individual moves in, there is no charge to the senior or their families.

Werner Enterprises, Inc. will release its second quarter earnings on Tuesday, July 30th after the market close. The company will also hold a conference call to discuss the second quarter 2024 results and 2024 outlook on the same day, beginning at 4:00 p.m. CDT.

HDR unveiled three redevelopment concepts for Michigan’s Harbor Island during a community meeting highlighting the visioning process this spring. These early concepts mark the beginning of a new future for the island. Located in Grand Haven, Michigan, the site has been the subject of a significant environmental investigation effort, also led by HDR.

Being healthy might help you financially, according to Omaha-based FNIC. One study found a steep increase in annual medical expenditures for individuals whose body mass index was above 30.

AAA projects that 70.9 million will travel 50 miles or more from home over the Independence Day holiday period. AAA included the entire July 4th week, plus the Saturday before and the Sunday after the holiday, in the estimate this year for the first time. As a result, the projected total is a five percent increase compared to 2023 and an eight percent increase over 2019.

Omaha Real Estate Numbers for September

By Joe Finlay

As we move into the second half of 2024, here’s what experts say you should expect for home prices, mortgage rates and home sales.

Home Prices are expected to Climb Moderately

Home prices are forecasted to rise at a more normal pace. Fannie Mae, Freddie Mac, Zillow and NAR forecast prices to appreciate by an average of 2.9 percent. Why? The supply of homes for sale.

While inventory is up compared to the last couple of years, it is still low overall. And because there still aren’t enough homes to go around, that’ll keep upward pressure on prices.

If you’re thinking of buying, the good news is you won’t have to deal with prices skyrocketing like they did during the pandemic. Just remember, prices aren’t expected to drop. They’ll likely continue climbing, just at a slower pace.

Mortgage Rates are Forecast to Come Down Slightly

One of the best pieces of news for both buyers and sellers is that mortgage rates are expected to come down a bit, according to Fannie Mae, the Mortgage Bankers Association and NAR, with an average of 6.57 to 6.73 percent for the remainder of the year.

When you buy, even a small drop in mortgage rates can make a big difference in your monthly payments. For sellers, lower rates will bring more buyers back into the market, which can help you sell faster and potentially at a higher price.

Home Sales Are Projected to Hold Steady

For 2024, the number of home sales will be about the same as last year and may even rise slightly. Lawrence Yun, chief economist at NAR says, “Job gains, steady mortgage rates and the release of inventory from pent-up home sellers will lead to more sales.”

With more inventory available and mortgage rates expected to go down, a few more homes are expected to be sold this year compared to last year. This means more people will be able to move.

Bottom Line

Steady interest rates and rising inventory will help buyers this fall. At the same time, those steady rates will help sellers, because more buyers will be looking. Let’s connectand talk through your options for the remainder of the year.

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

LEADERSHIP & MANAGEMENT

When taking on a new executive role, Forbes writer Nihar Chhaya recommends you avoid these five “traps:” 1. Sticking to what worked for you in the past; 2. Taking stakeholders for granted or ignoring them completely; 3. Forgetting to set a compelling vision; 4. Avoiding tough performance decisions; 5. Not keeping a check on yourself.

A recent Vyopta study of 40 million virtual meetings held by 450,000 employees from multiple companies found that employees who turn off their cameras during Zoom meetings are less likely to stay with their companies. Employees who stayed at their companies had a 32.5 percent camera enablement rate. Among those employees who left within a year, only 18.4 percent enabled their cameras during meetings.

Business Travel – Most CEOs plan to increase their travel budgets this year, as the C-suite sees business travel as valuable not only for revenue generation but for employee morale, according to Business Travel News. Most CEOs believe that business travel helps with employee retention. Among traveling employees, 63 percent said traveling for work makes them more likely to stay with their current employer. That number jumps to 76 percent for Gen Z employees. Seventy-five percent of HR leaders said job descriptions with travel opportunities are more attractive to applicants.

SALES

The lifeblood of any sales professional’s career is their pipeline, and the most adept among them know that consistently fueling this pipeline requires a significant investment of time, according to sales expert Stu Schlackman. On average, successful sales professionals earmark between 4-10 hours each week purely for prospecting activities, and in the high-octane environments of certain sales sectors, that number can readily climb to 20 hours or more.

More than half of salespeople rely on their peers to get tips for improving, while 44 percent looked to their manager and 35 percent to team training resources, according to HubSpot.

Time Management for Sales Pros – Group similar tasks together and tackle them in batches, says sales guru John Boe. For instance, dedicate a specific time each day to handle email responses, another for prospecting calls, and another for building proposals. Batching tasks helps you stay focused and avoids constant context switching, which can be time-consuming.

WISDOM

“There are two things in life you cannot achieve unless you close your eyes a little bit and take some risk. That is love and peace.” – Shimon Peres

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Did you know Fontenelle Forest is home to the “Constitution Tree?” It’s a burr oak tree that is at least 36 years older than the U.S. Constitution. By the way, the Constitution was written in 1787.

Did you know the University of Nebraska at Omaha has an undergraduate student-to-faculty ratio of 21:1? For graduate students, it’s 8:1.

Did you know that Omaha was just named one of the five best cities to visit in the summer? The study considered walkability, crime, prices, ease of travel and summer weather. Other cities in the top five were Minneapolis, Long Beach, Washington and Seattle.

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.

Night Market on June 28th: As the sun sets and the warm evening breeze rolls in, Omaha’s original Night Market sets the stage for unforgettable summer nights in scenic Turner Park. Highlights include: A bustling hub of more than 40 local vendors, boutiques and makers, live music and entertainment, outdoor games and activities, including a life-size coloring book, cornhole, Giant Connect 4 and more!

Couples Omaha Patio Ride on June 29th: Join in on a tour of downtown bars with the Omaha Patio Ride! Participants will bike around downtown on a 16-passenger bicycle, stopping at three to four bars along the way. The Patio Ride is designed for couples to enjoy a fun and memorable date while making new friends. Only one ticket is required per couple – get them while they last!

2024 Pitch Black Conference and Tech Showcase on June 29th: Pitch Black is a dynamic conference strategically crafted to fuel entrepreneurship across diverse communities in the Midwest. This event showcases prominent speakers, a business exposition and a business pitch competition. The competition is specifically tailored to offer a platform for emerging BIPOC (Black, Indigenous, and People of Color) as well as immigrant and refugee entrepreneurs to showcase their innovative ideas. Participants have the opportunity to compete for a grand prize of up to $15,000, complemented by invaluable in-kind support surpassing $40,000. Join others in championing entrepreneurship within black and minority communities in Nebraska and the broader Midwest!

Yoga in the Park on June 30th: Yoga in the Park offers a weekly outdoor yoga session, sponsored by Methodist Health System and led by certified yoga instructors from Genesis Health Clubs. Yoga styles and instructors will vary from week to week. All skill levels welcome, including beginners! Attendees are welcomed and encouraged to bring a water bottle and blanket or mat.

Leashes at Lauritzen on July 1st: Dogs love going on an adventure, so make your next night out with your four-legged friend an evening garden stroll during Leashes at Lauritzen. These events are enjoyable nights for dogs to walk the trails, meet other dogs, to take photos among the flowers and foliage, and hangout with other dog lovers. They’ll have water available at stations throughout the garden.

Marigold Lunch & Learn | Vendor Event Success: Best Practices and Insights on July 2nd: Join others for an insightful and interactive session on “Vendor Event Success: Best Practices and Insights” at Elevator Co-Warehousing. This event is tailored for small to medium-sized businesses, entrepreneurs and maker/vendors looking to maximize their impact and success at vendor events. Learn from experts in the community and connect with peers in the space!

Late Nights at The Zoo (21+) on July 3rd: This summer, Omaha’s Henry Doorly Zoo & Aquarium is opening its doors for adults only on Thursday nights! No kids – all fun! Sips, bites and wild sights select Thursday nights all summer long. 21+ only.

Free Lemon Fresh Day Independence Day Celebration Concert on July 3rd: Head to the Granary Green on July 3rd for a free concert hosted by the city of Ralston. Special guests Nebraska Wind Symphony will perform before Lemon Fresh Day! This event is free and family friendly until 9 p.m. when it’ll be 21+ only.

This section is sponsored by Eagle Mortgage, a locally owned, full-service mortgage company helping you with Conventional, VA, FHA and USDA loans in both Nebraska and Iowa. Learn how Eagle Mortgage helps people afford the home of their dreams by clicking HERE!

The Commercial Real Estate Summit Hall of Fame has announced its 2024 inductees: Bennett Ginsberg, managing director, CBRE; John Hoich, president, Hoich Enterprises; John Hughes, CEO & president, Magnum Development Corp.; and Nancy Johnson, president/CEO, NKJohnson Commercial Real Estate Advisors.

Fraser Stryker has added attorney Trevor Rogers. His legal practice focuses on commercial litigation, appellate, government and regulatory matters as well as insurance defense. Rogers most recently served as a judicial law clerk for the District Court of Douglas County.

Dr. Sophia Schneider has joined Boys Town Pediatrics as a pediatrician at the 7205 West Center Road office. She received her medical degree from the University of Nebraska Medical Center.

Omaha-based Lutz Financial recently added investment advisor Adriane Washburn to its Grand Island office. She specializes in providing comprehensive financial planning, investment advisory, and retirement planning services for high-net-worth individuals and families.

The Greater Omaha Chamber is a catalyst and connector, advocating for businesses small and large. Learn, share and grow with more than 12,000 professionals from 3,000 member businesses across Greater Omaha. Click HERE to see our latest events.

This week, I spent endless hours listening to the CNBC taking heads drone on and on about what the Fed should do, what it did wrong and whether we will get two, three or a gazillion rate cuts this year. Then I heard David Faber yammer about how the market isn’t working like its supposed to. Then the Mottley Fool published an article stating that the market is all screwed up, because the S&P should be equally weighted, not cap weighted.

All this is well and good. The problem is, or the reality is, Mr. Market is tone deaf to the aimless ramblings of the Wall Street media and has been on a sugar high for as long as I can remember.

Year to date, the market is up 15.2 percent. The numbers for the past 18 months are even more impressive. Since Jan 1, 2023, the S&P has gained 42 percent, while the Nasdaq has gained more than 80 percent.

“Forget the needle; buy the haystack” has an important corollary: “At the end of every straight-away, there’s a curve.” Only a Ouija board (Look that up in your Funk and Wagnalls) can predict when and how Mr. Market’s straight-away will end, but prudent investors need to have a plan in mind for when the inevitable happens.

When I was a wet behind the ears, snot-nosed broker, the answer to this conundrum was simple – just wait long enough and it’ll come back. The logic behind my approach was compelling. I had 1,800 clients, and the industry technology sucked, so any change would have to be done by hand. And – this was a major and – I was paid a percentage of assets under management. Therefore, do nothing or do something, I still got paid.

Today, 70 million Americans manage their own accounts. Transaction fees are close to or at zero. They have a plethora of options available to them. So, let’s say the market goes down 46 percent, like it did during the subpoena crisis. You just wait till it goes back up again. You’ve got to go up 60 percent, just to get back to even.

But, suppose you take a proactive approach. You miss the exact moment the downturn starts and jump ship after a 10 percent decline. The market drops 46 percent. You miss the exact bottom, but get back in after a 10 percent move up. You have done a horrible job of timing the market, but only have to gain 15 percent to get back to whole.

Investing is not a one-size-fits-all proposition, and my mission in life is not to convince you that one particular option best suits your situation. It’s simply to make you aware of the options available to you. Mission accomplished.

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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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