NewsLocal News


Office market in Omaha under-performed in 2017, but optimism remains for 2018

Posted at 6:31 PM, Mar 19, 2018
and last updated 2018-03-19 19:33:59-04

While Omaha's office market was flat last year, experts are anticipating a good year in 2018.

Last year's absorption rate in Omaha was nearly half of the average. Market absorption only totaled 135,000 square feet in 2017, compared to an average absorption of 250,000 square feet.

Office absorption rate factors in the number of office spaces that are leased or sold compared to the overall number of available square feet of space.

Investors Realty Vice President Tim Kerrigan says the city is seeing office space transactions, but not as large as years prior.

"In the better buildings in [Central West Dodge, Midtown, and downtown Omaha] locations, there's just not very much space available," Kerrigan said. "If you're driving Midtown or you're driving downtown and you see something available, you see something empty, chances are its got some inherent complication to it -- a lack of parking, for instance."

Kerrigan says speculative office space, or building without a set tenant in place, can fill a need for business in Omaha.