OMAHA METRO SEES ONGOING EVOLUTION IN ECONOMIC AND BUSINESS CLIMATE
Omaha’s growing retail industry serves as a visible representation of the city’s development and expansion.
2023 Highlights:
• Average retail rents have continued to rise year over year, ending at $17.59 PSF in the fourth quarter of 2023 which represents a 20% increase in average retail rents over the last 5 years.
• Continued absorption, combined with very little new construction, has reduced the vacancy rate to historic lows, currently standing at 4.7% which is down from a high of 6.5% in the last 5 years.
RETAIL VACANCY RATES BY SUBMARKET:
Omaha As A Regional Retail Hub
The big story is the trend that Omaha continues to be noticed by national and international retailers. The Metro area grew enough to hit the key MSA size range, seeing an influx of retailers into the Omaha market. Brands like Nordstrom Rack, Fleet Farm, and possibly IKEA, are examples of confirmed entries or future considerations. This makes Omaha a more popular place for shopping, bringing in people from nearby places. A main factor in Omaha becoming more well-known on a national level is the collaboration between city projects and private initiatives. A new legislative bill, the “Good Life Transformational Projects Act,” aims to fund large projects that can boost retail growth significantly and attract customers from a wider area, not just locally.
Nebraska Crossing could benefit from this bill with its proposed 1,000-acre expansion. The desire is to attract new retail, multi-family, and sports facilities, by establishing facilities large enough to draw people from neighboring states and tapping into multi-billion-dollar potential.
More To Get Excited About
Other projects are also contributing to the growth of retail in the metro area. Examples include the new 7,000-seat Union Omaha soccer stadium and entertainment district downtown. Another initiative
is Build OMA’s work to update our airport to attract more national and international travelers.
Key Takeaway
The retail sector in Omaha is growing and evolving, adapting to consumer needs. With the city attracting new businesses, it is becoming a key player in the regional market, providing opportunities for investors, developers, and retailers.
To view the full Omaha 2023 Year-End Retail Report, please click here.
This article appeared in our company newsletter in March of 2024. Please click here to download the entire newsletter.