Q1 2021 Omaha Office Market Report
A diverse economy is the bedrock of Omaha's strong office fundamentals. Several Fortune 1000 and 500 companies reside here, as well as a growing number of startups in what is known as the "Silicon Prairie." The strength of the economy helped it weather the economic downturn brought on by the coronovirus. More than half of the initial job losses in 20Q2 have been recovered, putting recovery here roughly 200 basis points ahead of the national average. The financial activities sector was the only one experiencing gains year-over-year in early 2021. With other office-using sectors continuing to experience losses year over year in 21Q1, vacancies have risen to levels last seen more than eight years ago. Occupancies have still maintained stabilization, backed by the metro's continued population growth and coupled with outsized wage increases since 2010. The expansion is ultimately expected to be short-term, with move-ins on the horizon, vaccine deployment, and additional federal stimulus on the way. Year-over-year asking rent gains had already been decelerating heading into the pandemic and were flat in early 2021. Though investment slowed as it did in many markets after the pandemic started, one of the strongest first quarters on record kept Omaha on track last year with its typical annual performance over the previous five years.