Omaha Office Figures Q4 2022

Market Overview

‒ Absorption in the Omaha office market is positive for the 2nd quarter in a row. However, there was only 34,681k sq. ft. of absorption. Net absorption for the year was 233,751 sq. ft.

‒ While absorption is positive and vacancy is low for now, available sublease space increased to over 1 million sq. ft. from 858,046 sq. ft. in the third quarter. All but 200k sq. ft. of the available sublease space was added to the market in 2022. Once the original leases expire, this space will hit the market as vacant unless it is leased. There is an average remaining term of 3.0 years for the original leases. Over 73% of the available sublease space has been listed for 6 months or more. However, only 157.2k sq. ft. has been listed between 1 and 2 years.

‒ Average asking lease rates increased $0.04, or less than 2 tenths of one percent, quarter-over-quarter, and $0.92, or 3.8%, year-over-year and now stands at $25.08 per square foot on a full-service gross basis. 

‒ Vacancy in the market decreased 20 basis points from 9.8% in Q3 2022 to 9.6% in Q4 2022. Vacancy is down by 220 basis points from the 4th quarter of 2021 as office users make space need decisions post-Covid-19.