Q4 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 was more than double the national in early 2020 following a resurgence that began in the middle of 2019. 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 near or 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. Though rent losses have been the norm since early 2019, moderate rent growth the previous four years, along with average asking rents that surpass larger Midwest metros like Kansas City and St. Louis, has been a testament to these conditions. Sales volume was at its lowest point in seven years in 2019 and the metro had its first trade of the year that came in below the metro's average sale price for the current expansion.