Omaha Industrial Figures Q4 2022

Market Summary

‒ After posting record low vacancy of 1.3% for the third quarter of 2022, the vacancy rate in the Omaha industrial market is now another record low 1.1% in the fourth quarter of 2022.

‒ The market absorbed 161,170 square feet this quarter, while delivering only 32,500 square feet. Total net absorption for 2022 is 2,065,298 sq. ft.

‒ After hitting a record high of $7.44 per square foot in the third quarter, average asking rental rates fell slightly in the fourth quarter to $7.36 per square foot on a triple net basis. Average asking rental rates are $0.83, or 12.7%, higher than in the fourth quarter of 2021.

‒ Fifteen industrial properties totaling over 2 million sq. ft. are under construction, with over 1.3 million sq. ft. (65.4%) located in the Sarpy West submarket. Another 3.4 million sq. ft. are proposed in the market.

‒ While there were only 32,500 sq. ft. delivered to the market for the quarter, over 1.3 million sq. ft. were delivered to the market during 2022. By submarket, most of the space, 868,300 sq. ft., was located in the Sarpy West submarket. By subtype, most of the space, all but 44,400 sq. ft., was warehouse/distribution space.