OFFICE MARKET HIGHLIGHTS:

• Q3 2020 experienced 182,288 square feet of negative absorption. This was largely due to InfoGroup vacating 176,033 square feet in the Papillion Business Park within the Southeast Submarket.
• Out of 12 submarkets only 4 experienced positive absorption, of which were minimal gains.
  • Northeast
  • Old Mill
  • South Central
  • Suburban West Dodge
• Overall Market year over year results:
  • Vacancy Rate: Q3 2019 – 6.3% to Q3 2020 – 8.2%
  • Absorption: Q3 2019 – 212,501 SF to Q3 2020 – (51,295) SF
  • Asking Rental Rates: Q3 2019 – $18.40 PSF to Q3 2020 – $21.72 PSF
    • This dramatic increase is initially surprising but results from significant Class A new construction which raises the average asking rent.
• Q3 2020 leasing activity continues to lag far behind previous years.
  • Q3 2020 saw no leases signed over 15,000 SF whereas Q3 2019 saw 8.
  • Q3 2020 saw only 5 leases signed over 10,000 SF:
    • Raymond James – 14,770 SF
    • CareDX – 13,132 SF
    • Alff Construction – 12,500 SF
    • NP Dodge Real Estate – 11,397 SF
    • Concentra – 10,314 SF

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