Investors Realty, Inc. 2025 Mid-Year Industrial Market Report

Investors Realty, Inc. 2025 Mid-Year Industrial Market Report

INDUSTRIAL MARKET OVERVIEW:

  • Sales are on pace through the first 2 quarters of 2025. Quarters 1 and 2 of 2024 saw 48 sales, compared to 53 through the same period. Interestingly, 17 of the sales this year are larger than 25,000 SF, compared to only 7 last year. 
  • Leasing activity slowed during the first half of 2025, with 81 lease transactions year-to-date, compared to 123 transactions during the same period in 2024. Large-scale leasing also declined, with only one deal exceeding 100,000 SF this year, compared to four deals last year. 
  • The vacancy rate continues to outperform national trends, falling to 2.7% in 2025, down from 3.1% at 2024 year-end. This remains well below the national vacancy rate of 7.4%, highlighting Omaha’s ability to maintain exceptionally tight market conditions even amid slower overall leasing activity.
  • Average asking rental rates in the Omaha industrial market remain steady at $8.41 PSF in 2025, marking an 18% increase over the past five years. This stability reflects sustained demand for quality industrial space, combined with a limited pipeline of new, available product.
  • Construction activity has slowed down compared to the past five years but remains steady, with 18 properties totaling 4.7 million SF underway, however, most of that is data centers: Google’s 2.2 million SF off Blair High Road and State Street, and Meta’s 1.4 million SF near Fairview Road. New-to-market developers, such as Hubbell Realty, are also contributing to market growth, delivering 260,828 SF at 15640 Sunburst Drive, of which 181,876 SF is preleased to Rotella’s Italian Bakery. 
  • Other significant projects under construction include the Food Bank for the Heartland at 84th and L Streets (105,000 SF), MUD’s new Operations Center at 108th and Hwy 133 (140,000 SF), and Midwest Peterbilt off Hwy 370 and I-80 (70,000 SF).  
  • Activity remains concentrated in the Northwest and Sarpy West submarkets, which account for over 95% of current construction, signaling continued long-term confidence in these high-growth areas.

To read and download the complete report please click here.