Q3 2019 Omaha Office Market Report

The diverse economy is the bedrock of Omaha's strong office fundamentals. The strength of the economy has kept the unemployment rate at or below 3%, which is among the lowest in the state, as well as the nation. Job growth slowed into mid-2019 and was roughly 50 basis points behind the national average. Although job creation remains sound, absorption over the next few years could continue to weaken in conjunction with the tight labor market. Vacancies have remained below 7% since late 2015, despite some volatility in demand. Indeed, the metro's continued population growth, coupled with outsized wage increases since the recession, is a good sign for businesses in the short term. Investors have appeared bullish on Omaha's fundamentals and economic outlook, as prices remain elevated in the metro.