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.
Download the complete report at http://files.investorsomaha.com/download/OmahaOfficeReport_Q3_2016.pdf
