INDUSTRIAL MARKET HIGHLIGHTS:
- Overall leasing activity is down significantly through the first and second quarters of 2023 compared to the first and second quarters of last year. So far this year there have only been 51 lease transactions. This time last year, there were 101.
- Along with lease volume being down, average lease size is also down. Last year, there were eight leases over 50,000 SF through the first two quarters of the year. As of the end of this most recent quarter, there were only two.
- Of additional significance, all four lease transactions signed over 20,000 SF year to date have occurred in second generation space.
- The 3.5 million square feet under construction through mid-year includes a lot of speculative warehousing, build-to-suits, and owner occupied industrial. NewStreet Properties broke ground on 405,600 SF in Gretna, Rotella’s Italian Bakery broke ground on a 225,000 SF warehouse in Papillion, Nebraska Warehouse broke ground on 205,000 SF in Springfield, and the 60,000 SF Southern Carlson built-to-suit is nearing completion. However, 2.2 million of the overall total of 3.5 million is made up entirely of the Google Data Center on Hwy 133 in Northwest Omaha.
- Deliveries year to date are a different story. A bulk of the deliveries are made up of spec and build-to-suit warehouse construction. Dollar General (930,000 SF), R&R Commerce Park South Warehouses 1 & 2 (286,000 SF & 151,840 SF), I-80 Logistics Hub Warehouse VI (313,281 SF), and River Road Logistics Park Phase 1 (302,348 SF) represented a majority of deliveries through the first half of the year.
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