Q4 2019 Omaha Industrial Market Report
Omaha is a natural distribution hub due to its central location, strong agriculture industry, and ability to transport via rail, road, river and air. As a result, fundamentals have been sturdy traditionally, and vacancies remained compressed below 5% through early 2020. This has not only kept national tenants like Kellogg and Tyson Foods in the metro, but it will also bring Facebook when its data center completes in 2022. Through positive demand returned late last year, a negative absorption in the first half of 2019 and again in early 2020 has put a damper on year-over-year rent growth. This follows a stretch of strong gains from 2015-19. Low vacancies and availabilities across the same time helped to foster that growth and have been a buffer against the recent turn in demand. Developers have yet to slow down as a roughly 600,000 SF was underway in Q1 2020. Sales volume reached a peak in 2019 at more than $180 million, and prices have appreciated throughout the cycle.