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Weekly Market Report – October 20, 2022
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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, The Offices at Turner Park!
Restaurant & Retail Updates
Macadoodles Fine Wine, Beer & Spirits will open its first Nebraska or Iowa store in a building to be constructed at 3409 South 72nd Street in the MH Landing development. Missouri-based Macadoodles has 10 existing locations in Missouri and Arkansas. Each store is stocked with 4,000 wine labels and 600 beer varieties. Opening is planned for next year.
The official opening date for the new Little King Deli & Subs restaurant under construction at West Dodge Road & Cass Street is November 1st.
The Beanery coffee shop opened a new location today at 168th & Giles. This location is constructed out of shipping containers stacked upon one another. The Beanery has several existing metro area locations.
Deka Lash plans to open soon in Papillion’s Shadow Lake Towne Center. Deka Lash is a Pennsylvania beauty company with 125 locations including two existing ones in Omaha.
Rib Shack Smokehouse is celebrating a ribbon cutting at 10841 Q Street. The restaurant operated in St. Louis before moving to Omaha.
Stokes Grill and Bar is permanently closing its Old Market location at 1122 Howard Street effective October 22nd. Stoke’s west Omaha location plans to remain open.
Bowlero Corp., the world’s leader in bowling entertainment, has entered into a definitive agreement to acquire The Mark at 20902 Cumberland Drive in Omaha and has completed the acquisition of Thunderbowl in Council Bluffs. New York-based Bowlero has more than 300 bowling centers across North America, serving 27 million customers each year through a family of brands that includes Bowlero, Bowlmor Lanes and AMF.
The Mark has 40 bowling lanes, basketball and volleyball courts, an arcade, full-service kitchen and sports bar in an 85,000 sq. ft. building. Thunderbowl features 32 lanes, an interactive arcade, on-site pro-shop and McCoy’s Bar and Grill.
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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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Is Omaha One of the Nation’s Hottest Real Estate Markets???
Omaha is one of the hottest real estate markets in the country, according to a recent article in Forbes magazine. Home prices in Omaha will jump by 6.4 percent over the next year, making it the third-best-performing real estate market in the country over that time.
Forbes projects nearby Lincoln to be number one: “The home of the University of Nebraska tops (the) list with an estimated 12-month appreciation of 7.2 percent.”
One of the primary reasons for the projected appreciation is high interest rates. Homes in Nebraska’s largest cities are substantially lower than the national average. That translates to a housing market that’s less susceptible to slowdowns brought on by 30-year-loan interest rates approaching 7 percent.
But it’s not just interest rates. Population growth and economic development are big positives in eastern Nebraska’s favor. An Omaha real estate agent quoted in the article cited Nebraska’s effective handling of the pandemic as an attraction factor as well as Omaha’s ability to mix small-town friendliness with “great restaurants, diversity and pocket neighborhoods.”
Here’s the list of the 10 Strongest Performing Metro Markets for projected home value appreciation between now and this time next year (and the projected growth rates):
- Lincoln, NE 7.2%
- Richmond, VA 6.9%
- Omaha, NE 6.4%
- Indianapolis, IN 6.4%
- Wichita, KS 6.4%
- Fayetteville, NC 6.3%
- Warner Robbins, GA 5.9%
- Wilmington, NC 5.7%
- Goldsboro, NC 5.8%
- Grand Rapids, MI 5.7%
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Grow Omaha Snippets
Grow Omaha Snippets Sponsored by:
The Omaha Sports Commission and the Metropolitan Entertainment and Convention Authority plan to make a bid to bring the 2024 men’s and women’s gymnastics trials to Omaha, according to the Omaha World-Herald. Omaha will be competing with St. Louis, which hosted a record crowd of 20,815 on the final night of the 2021 gymnastics trials. A decision is expected early next year.
Demolition Progress Report – Workers started removing exterior walls on the former W. Dale Clark library at 14th & Farnam Street. Demolition is scheduled to be complete before the end of the year, making way for Mutual of Omaha’s 44-story headquarters building.
Construction is expected to begin soon on a Microtel Inn & Suites hotel building in La Vista’s Southport West district on a 1.7-acre lot between an existing Hooters restaurant and a 3-story office building.
Grading is mostly complete at the future Gretna Landing, a 60-acre, mixed-use development northwest of 192nd & Highway 370. The site is immediately west of the 150,000 sq. ft. Hy-Vee grocery store which is under construction and scheduled to open this spring.
The Council Bluffs Area Chamber of Commerce is partnering with Iowa Workforce Development and Iowa Economic Development Authority to complete a Laborshed employment study for the Council Bluffs area. This study will geographically define which communities contribute to Council Bluffs’ workforce, regardless of political boundaries. The Laborshed area is based on commuting patterns. The study’s purpose is to measure the availability and characteristics of area workers.
The eastbound section of Interstate 480 along the north side of downtown Omaha will close temporarily from October 21st to October 23rd to allow for pavement overlay. The 14th and Douglas streets ramps will remain open during the closure.
Commercial Real Estate Trivia – According to CoStar, Omaha has a grand total of 47.6 million sq. ft. of office space. Retail space totals 64.3 million sq. ft. There is 103 million sq. ft. of industrial space.
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.”
Local Business News Sponsored by FranNet of The Heartland:
Real Estate News from CoStar – Kroger, the nation’s largest supermarket chain, is likely to gain leverage and bargaining power with vendors, expand its brick-and-mortar footprint and boost its online-delivery capabilities through its planned $24.6 billion acquisition of grocer Albertsons Cos., creating a juggernaut that can better compete with rivals such as Walmart, Amazon and Costco.
A present, Kroger, based in Cincinnati, and Albertsons, headquartered in Boise, Idaho, would have an enormous combined real estate portfolio that includes 4,996 stores, 3,972 pharmacies, 2,015 fuel centers, 66 distribution centers and 52 manufacturing plants.
Berkshire Hathaway Inc. has completed its acquisition of Alleghany Corporation. Holders of Alleghany common stock as of immediately prior to the closing of the transaction are entitled to receive $848.02 per share in cash, representing a total equity value of approximately $11.6 billion. Upon the closing of the transaction, Alleghany became a wholly-owned subsidiary of Berkshire Hathaway. Alleghany continues to be led by Joe Brandon.
Union Pacific Corporation reported 2022 third quarter net income of $1.9 billion, or $3.05 per diluted share. These results include a $114 million charge for a change to prior period accounting estimates related to new, tentative and ratified labor agreements. Excluding the effects of that charge, adjusted third quarter net income was $2.0 billion, or $3.19 per diluted share. This compares to 2021 third quarter net income of $1.7 billion, or $2.57 per diluted share.
Along with co-owners, Da Yang Seafood and Bornstein Seafoods, Omaha-based Scoular held a ribbon cutting this week for its new fishmeal processing facility in Warrenton, Ore. The facility will upcycle Da Yang and Bornstein fish trimmings from their nearby seafood processing plants. The trimmings will be processed into fishmeal and fish oil, valuable ingredients in the pet food and aquaculture markets and both marketed under Scoular’s Encompass™ brand. Processing will begin in early 2023.
The former U.S. Bank branch office at 525 North 132nd in the Linden Market shopping center will become a new office for Omaha-based Enterprise Bank.
The Creighton University Rural Mainstreet Index fell for the sixth time in the past seven months, sinking below growth neutral for a fifth consecutive month, according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy. The region’s overall reading for October fell to 44.2 from 46.3 in September. The index ranges between 0 and 100 with a reading of 50.0 representing growth neutral.
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 Cost of Waiting for Mortgage Rates to Go Down
By Joe Finlay
Over the past two years, the substantial imbalance of low housing supply and high buyer demand pushed home sales and buyer competition to new heights. But this year, things are shifting as supply and demand reach an inflection point.
This year, buyer demand has eased as higher mortgage rates and mounting economic uncertainty moderated the market. The latest data from ShowingTime suggests that showings (an indicator of buyer demand) have softened by over 12% compared to the same time last year.
Now for a look at how housing supply has changed. Data from the Great Plains Regional MLS suggest active listings are up nearly 39% in the Omaha area compared to last year. That’s because the moderation of demand allowed housing inventory to increase in 2022.
What Does This Inflection Point Mean for Buyers?
If you’re thinking of buying a home, you’ll have less competition and more options than you would have had last year. The number of closed properties in Omaha is down 7% compared to last year. Enjoy having more homes to choose from in your home search and lean on a trusted real estate professional to understand how the increase in supply has also increased your negotiation power. That professional can talk you through the opportunities and challenges buyers face in today’s shifting market. You may be surprised to find they’re different than they were a year ago.
What Does This Inflection Point Mean for Sellers?
If you’re looking to sell your house, know that inventory is still low overall. That means, if you work with an agent to price your house based on current market value, it will still sell despite the inventory gains and moderating buyer demand this year. That’s because there are still buyers out there who want to move, and your house may be exactly what they’re looking for.
As we enter into Q4 and the holidays, the serious buyers are still looking for a house, so your house should sell if priced correctly. Let’s connect so you know what’s happening in your neighborhood.
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
A Focus on Creativity This Week – The Nobel Prize-winning scientist Albert Szent-Gyorgyi once said, “Discovery consists of seeing what everyone has seen but thinking what nobody has thought.”
Inspiration from Outside Your Industry – Southwest Airlines became one of the most effective operators in the USA by reducing its turnaround times at airport terminals. It obtained many of the insights for this from studying the process of pit-stops in motor racing.
Inspiration from Outside Your Industry II – The legendary businessman Henry Ford once visited a beef packing plant in Chicago. Ford took great interest in the way workers processed the beef from whole carcasses into small cuts of ready-to-sell meat. As he observed, it occurred to Ford that if the process was reversed, all the cuts would go back together to form a whole steer carcass again. The metaphorical light bulb switched on in Ford’s head. “I can build automobiles this way,” he thought. Ford went back home to Detroit and promptly created the famous assembly line.
A typical firm of 100 to 500 employees has an average of seven people who are involved in most buying decisions, according to Marketing Blender. That means you should identify and purse multiple contacts in a company, a strategy called “account-based sales.”
As a general rule, sales pros are better off avoiding or working around the procurement departments.
Procurement departments are populated with “professional buyers,” people who are highly trained and experienced. That means they have a built-in advantage over sales professionals. They tend to be more formidable in sales negotiating than sales reps.
That doesn’t mean you disrespect professional buyers, show hostility toward them or have disdain for them. Sometimes, despite your best efforts not to, you will have to work with procurement. They are human like you and me. Building rapport and trust with them can be very effective.
Nevertheless, you are almost always better off prospecting end users and decision makers at companies instead of going through procurement. You’re almost always better off doing the deal with the decision maker and either avoiding procurement all together or only interfacing with them when the process is essentially a formality. Don’t look at procurement as an enemy, but they aren’t one of your close friends.
Sometimes the decision maker or end user will send your proposal to procurement for approval and final negotiation. When that happens, don’t assume anything. You still have to actively shepherd your deal. Procurement will likely have less of a sense of urgency than you and the decision maker do. You’ll likely have to keep in communication with your contact in the procurement department.
Regardless of whether you negotiate with procurement or with the decision-maker themselves, one thing is always true: you don’t want to go into negotiations lacking confidence.
The number one reason salespeople are in a week position at the negotiation table is an empty pipeline. When you don’t have enough opportunities in your pipe, you feel desperate. As the old saying goes, you can smell desperation in a sales rep’s breath. You don’t want “commission breath.” That’s the bad “smell” you emit when you’re too desperate for any one deal. Commission breath is like blood in the water to procurement sharks.
“Effective leadership is not about making speeches or being liked; leadership is defined by results, not attributes.” – Peter F. Drucker
“The nation will find it very hard to look up to the leaders who are keeping their ears to the ground.” – Sir Winston Churchill
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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Ghouls & Glow On October 21-30th: Experience a light-time adventure for the whole family this Halloween at Omaha’s Henry Doorly Zoo and Aquarium during Ghouls & Glow. This zero frightful and all delightful event is an illuminated spectacle for all ages! At Ghouls & Glow, there’s so much to see and do. You can walk through over 400 larger-than-life Halloween lanterns, watch a fire show, dance the night away to drummers and a DJ, visit select animal exhibits after-hours, and of course trick-or-treat every night!
Art Fluid – Fall Fundraiser on October 21st: Art Fluid is a happy hour, open studio night that focuses on what is most unique about the Hot Shops – experiencing the creative process. October’s Art Fluid is also their first ever fundraising event! This Halloween-themed event will feature demonstrations, make-and-take projects, a Halloween scavenger hunt, create your own Halloween mask and will have a limited number of discounted Raku and glassblowing experiences.
Crawl-O-Ween on October 22nd: It’s all treats, no tricks at the inaugural Midtown Crossing Crawl-O-Ween on Saturday, October 22! Themed drinks, food pairings and a costume contest await those who dare to join.
Union Omaha vs Chattanooga Red Wolves Watch Party on October 22nd: Come out to the Granary Green in Ralston to support Union Omaha in their playoff match against the Chattanooga Red Wolves! The outdoor venue features a 27ft LED mega screen perfect for cheering the team on! Bring your friends to support Union Omaha and enjoy the food and drinks at the Granary!
Mug News Social on October 25th: Join local founders, investors, and members of the Maverick Venture Fund at the Ashton building in Millwork Commons on the last Tuesday of every month for meaningful conversations and connections. You’ll have the chance to hear from founders about their startups, important funding and growth updates, and local startup events throughout the social.
Lunch and Learns on October 26th: This event is being offered to the public for a limited time, so take advantage of these FREE Lunch and Learns while you can! This opportunity provides an informative lunch that focuses on a wide range of topics that benefit entrepreneurs and small business owners. Join others for a catered lunch and a chance to expand your knowledge and network!
Average Joey and TerraGram on October 26th: Experience thoughtful lyricism and superb musicality from Average Joey (Pittsburgh), TerraGram (Omaha), and Poetry by Joe from Long Island. Bring your friends for a night out to support local and non local artists!
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
Lance Larsen has been appointed as vice president, alternative distribution at WoodmenLife. Prior to joining WoodmenLife, Larsen was regional vice president at Ameritas Life. He also served as vice president of sales for Transamerica for more than 10 years and as sales vice president at Sammons Financial Group for eight years. Larsen earned a Bachelor of Arts degree in Psychology from the University of Iowa in 1994.
Baird Holm LLP has added four new associates to the firm. Halle A. Hayhurst is a member of the firm’s Technology & Intellectual Property section. Katie L. Kalkowski focuses her practice on corporate transactions and general corporate matters. Addison C. McCauley concentrates his practice on all aspects of employment litigation. James T. Schmidt is a member of the firm’s Bankruptcy & Creditors’ Rights section, where he concentrates his practice on creditors’ rights and commercial litigation.
Javier Fernandez, president & CEO of the Omaha Public Power District, has been elected to Lincoln-based Ameritas Mutual Holding Company’s board of directors. Fernandez also will serve as a director for Ameritas Holding Company and Ameritas Life Insurance Corp.
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.
Views and opinions expressed herein are solely those of the author.
Mr. Market is going through the terrible twos. One minute he is adorable, soft, cuddly and smells like baby oil. Then 20 minutes later, he’s screaming at the top of his lungs and smells like poop.
Investors may be wondering “How did I get into this mess, and is there a legal way out?” They are not alone. The Wall Street broker types and their media enablers are flummoxed, because Mr. Market’s antics don’t match their paradigm that stocks are bought and sold based upon their financial fundamentals.
If we approach the situation from the perspective of the story of the elephant and the four blind men, we can appreciate Mr. Market’s gyrations. One telling data point is the daily report on the most actively traded stocks.
The Wall Street Journal’s reporting methodology treats exchange trades like stocks because they’re traded during regular market hours, just like individual stocks. For the last few months, the top 10 most active list has included four or five index fund ETFs. They are related to the S&P 500 and the Nasdaq. Last week, one based on Crypto currency joined the fray. On the top of the list are two ETFs that are derivatives of QQQ, the biggest Nasdaq 100 index fund.
One of the derivatives is highly leveraged, and the other one shorts the index. Both move about 5x faster than the parent index, and they mirror each other in the opposite direction. Neither is meant to be held long term. If you track their volume, a big spike occurs at the markets close when traders close out their positions. Translation: some of Mr. Market’s gyrations are the result of day traders who love volatility. Take away the volatility, and the day traders flock to the exits.
I will close by taking a major liberty with a quote Biden made to Obama when he didn’t know the mic was live: “China is a big f–king deal.” The pandemic and Xi Jinping’s power grab have turned China’s place in the world 180 degrees.
Three years ago, China was an important player in our economy and the stock market. We run a substantial trade deficit with them and are at their mercy for our supply of key pharmaceuticals and computer chips. That ship has sailed. Xi has instituted a vision of China’s future that puts the CCP in charge of both their economy and society. This and other recent events have caused U.S. and European companies to rethink their relationship with China.
To those of you with robo accounts, the Gnomes suggest you rethink your international exposure component. Time to take a close look at your haystack(s).
Sofra Kitchen Now Open in Midtown Crossing!
Sofra Kitchen is now open on Farnam Street in Midtown Crossing. Located in the former Grey Plume space, Sofra Kitchen is a sister restaurant to Sofra Creperie, the fast-casual eatery in Aksarben Village.
Owner Nils Gjoca says Sofra Kitchen is a full-service restaurant now serving breakfast and lunch items. Unique dishes include the Truffle Shrimp Roll made with a French Brioche, Lox Avocado Toast and the BLT Benedict, as well as classic items such as the Sofra Burger, which is their take at the famous Big Mac.
All of their dishes are curated by Mikel Fane, a European chef with over a decade of experience working in regions such as Italy, Greece and the Mediterranean coast.
Sofra Kitchen is open daily from 7am-2:30pm at 220 S. 31st Avenue, Suite #3101.
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