Omaha Retail Market Ends 2020 with Positive Absorption and Lower Vacancy
After vacancy increased in the third quarter of 2020, the Omaha retail market’s vacancy rate fell 60 basis points from 8.6 percent to 7.8 percent in the fourth quarter of 2020. This can be attributed to 76,782 square feet of positive absorption.
The retail market, both locally and nationally, was already changing prior to Covid-19, with a move from brick-and-mortar to online shopping. As a result, the business community slowed new retail construction to combat the changes in retail habits. As a result, only 6,500 square feet of retail space was delivered in the fourth quarter, bringing annual new construction to 128,716 square feet. In addition, average asking rents increased 30 cents from $12.72 per square foot in the third quarter to $13.02 per square foot in the fourth quarter of 2020.