If you look at transaction volume alone, 2025 reads like a slower year. Leasing activity was down from the pace we saw between 2021 and 2024. Construction levels pulled back meaningfully from the peak years. Fewer large deals moved the needle.

That is the surface level read. The real story is about supply.

Omaha finished 2025 with a vacancy rate around 2.7 percent. That is down from 2024 and still well below the national average. But even that number does not fully capture how tight parts of this market are. In South Central, Northwest Omaha, and sections of Sarpy West, quality industrial space under 50,000 square feet is difficult to find. It isn’t about price; there are just few available options.

Absorption came in at roughly 1.5 million square feet. That is healthy, even if below the unusually strong years we experienced from 2021 through 2024. Even in a year with fewer transactions, demand continued to outpace speculative deliveries. Vacancy did not expand, it compressed.

Construction tells the same story. Development activity slowed. The pipeline entering 2026 is lighter than what we saw in 2022 and 2023, and most of the buildings recently completed or underway were either custom builds or mostly leased before construction even started. There was very little speculative risk taken this year. In a lot of areas, we simply do not have enough space.

Nationally, several markets are working through elevated vacancy after pushing too much speculative product into the cycle. Omaha avoided that. We did not flood the market with space that did not have a tenant behind it. As a result, even in a lower transaction year, vacancy tightened.

From a developer’s standpoint, that is the key point. This is not a market sitting on extra inventory. In multiple submarkets, particularly those serving small and mid bay users, there are very few options available.

Rents continued to increase in 2025, although at a slower rate than in prior years. After several strong growth years, moderation is expected. What we did not see was a correction. Well-located Class A buildings and functional Class B buildings continue to command strong pricing. Concessions remain controlled because supply remains tight.

Throughout the year, we said the same thing in our market updates: Omaha is undersupplied. It’s a situation that positions the market well for future development and investment. The 2025 numbers support that.

• Fewer transactions did not lead to rising vacancy.
• Slower construction did not loosen the market.
• Inventory tightened further.

As we move further into 2026, the development pipeline remains lighter than the ten year average. Several major transactions have already occurred to start the year, and very few existing vacancies remain. The limited new construction underway is leasing quickly. If construction stays restrained, vacancy will remain near historic lows.

For developers evaluating timing and product type, the question is not whether Omaha built too much. The question is whether we have built enough.

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This article appeared in our company newsletter in March 2026. Please click here to download the entire newsletter.