OFFICE MARKET HIGHLIGHTS: Downtown Office Suffers while Suburban Class B Thrives
The Omaha office market experienced negative 39,916 square feet (sf) of net absorption in 3Q 2016, and 14,000 sf of positive net absorption year-to-date.
ConAgra’s 250,000 sq. ft. and Gavilon’s 52,823 sq. ft. nearly doubled downtown’s vacancy rate from 8.5% to 15.3% in the 3rd quarter.
Year-over-year average asking rents have climbed slightly from $18.79 psf in 3Q 2015 to $19.52 psf in 3Q 2016 and can be attributed to increasing operating expenses. Average operating expenses for Class A buildings are $10.50 psf, Class B-$9.25 psf, and Class C-$6.50 psf.
North Park leads the way for Suburban Office with 120,000 sq. ft. leased in the 3rd quarter and approximately 230,000 sq. ft. leased in the last 18 months.