OFFICE MARKET HIGHLIGHTS:
- In the second quarter of 2020 (Q2), the Omaha Office Market reported a negative absorption of 64,267 SF compared to 119,954 SF of negative absorption a year ago in Q2 2019. Although the year 2019 ended with significant positive absorption, unfortunately, the same will not occur in 2020.
- The bulk of Q2 2020’s negative absorption comes from the Midtown submarket, which had a negative absorption of 96,359 SF, mostly due to Alorica vacating 91,316 SF from the Plaza of the Americas Building located at 7171 Mercy Road.
- Despite the market experiencing roughly 65,000 SF of negative absorption overall, there were two submarkets that saw a significant amount of positive absorption in Q2, mostly as a result of several smaller transactions.
- Southwest: 42,070 SF
- Northwest: 37,034 SF
- The vacancy rate in Q2 (5.9%) is the highest it has been in almost 4 years (Q4 2016 = 6.1%). Just one year ago in Q2 2019, the vacancy rate was only 5.2%.
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