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Omaha Office Figures Q1 2023

April 6, 2023 10 Minute Read

Bob Kerry Pedestrian Bridge spans the Missouri river with the Omaha Nebraska skyline in the backgrou

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Absorption in the Omaha office market is positive for the 3rd quarter in a row, posting 70,503 square feet of net absorption in the first quarter. As a result, vacancy fell by 30 basis points to 9.3% in the first quarter, compared to 9.6% in the fourth quarter of 2022.

Available sublease space reached a record high level of over 1 million square feet in the fourth quarter of 2022. Since the end of 2022, available sublease space fell by approximately 170,000 square feet and now sits at 886,168 square feet. While this sublease space reflects a challenge in the local office market, the vacancy rate and new construction remain low.

Average asking lease rates increased $1.01, or 4%, quarter-over-quarter, and $0.91, or 3.6%, year-over-year and now stands at $26.09 per square foot on a full-service gross basis. Part of this increase is due to an annual increase of average operating expenses between 5% and 8%.

Vacancy in the market decreased 30 basis points from 9.6% in Q4 2022 to 9.3% in Q1 2023. Vacancy is down by 250 basis points from the 4thquarter of 2021, prior to the disruption caused by the Covid-19 pandemic.