Omaha Office Market Sets a Record for Low Vacancy
At the end of the second quarter of 2019, Colliers International | Omaha declared that a record low vacancy rate of 6.7 percent occurred for the Omaha office market. Last quarter, the vacancy rate rose 30 basis points to 7.0 percent. Since then, the Omaha office market absorbed over 200,000 square feet, bringing the vacancy rate to yet another low vacancy rate of 6.3 percent. This vacancy rate is 140 basis points lower than in the fourth quarter of 2018 and 240 basis points lower than the fourth quarter of 2017. While the national fourth quarter figures aren’t yet out, Colliers International reported that the vacancy rate for the entire national office market was 11.4 percent in the third quarter of 2019. Omaha’s vacancy rate is currently 510 basis points lower than vacancy reported in the third quarter. Omaha’s office market had a stellar year, absorbing over 370,000 square feet in 2019. This level of activity represents 120,000 square feet more than the ten-year annual average of 250,000 square feet. Omaha’s business climate is typically more conservative than other markets, with little speculative building taking place that isn’t significantly pre-leased. The construction pipeline currently has over 1.5 million square feet of office space underway. This is due to the low vacancy rate and the fact that only 226,799 square feet of newly constructed property has been recently delivered to the market.