Xceligent, Inc. recently released its Q2 Omaha Industrial Market Report and the review is mixed on my end. After what seemed like a busy and active start to the year, both leasing and sale activity in the Omaha Industrial Market have slowed significantly. However, there was some good news. Here are a few highlights:
- The overall market vacancy rate is down slightly from 5.6% to 5.5%
- the South Central submarket, the largest in the Omaha metro, is down to a 3.2% vacancy rate.
- The market absorbed 47,900 SF
- Average Direct Lease Rates are up slightly
And now for the bad news:
- Only 32 industrial deals took place last quarter
- Just 3 deals larger than 20,000 SF took place
- Flex space in the South Central submarket is 9.4% vacant
- Additionally, only 1 property in the Omaha metro has over 100,000 square feet available, the Omaha Works Industrial Building (formerly Connectivity Solutions).
Over all, we’re in a good place right now, but it still feels like it could be a while before new inventory is added to the market: lease rates are still too low and landlords are still having to give rental concessions to renew existing tenants or bring in new ones. But perspective is important, and in comparison to other markets, we are in great shape.