One Million Square Feet of New Space Drives Record High Asking Rent
2019 started with the first two quarters having negative absorption however the year ended with over 600,000 square feet of annual positive absorption with most of that occurring in the fourth quarter. Over 950,000 square feet of newly constructed industrial space was delivered to the Omaha industrial market in the fourth quarter bringing the annual total to over 1.2 million square feet. This additional product drove rents to a record high average asking rent of $6.83 per square foot for the Omaha industrial market. This represents stunning growth of $1.03 per square foot from the fourth quarter of 2018 and an increase of $1.28 per square foot from the fourth quarter of 2017. The vacancy rate remains at 3.1 percent which is 30 basis points lower than the fourth quarter of 2018. Almost 800,000 square feet of industrial product is currently under construction in the Omaha market.