Downtown office vacancy rate

Downtown, Midtown, and all parts east of 72nd.

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MadMartin8
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Postby MadMartin8 » Sun Jul 14, 2013 6:52 pm

How big is the lot that was formerly supposed to be the Wall Street Tower?
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iamjacobm
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Postby iamjacobm » Sun Jul 14, 2013 6:54 pm

MadMartin8 wrote:How big is the lot that was formerly supposed to be the Wall Street Tower?


An entire city block.

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Re: Downtown office vacancy rate drops to 23%

Postby iamjacobm » Wed Mar 05, 2014 10:39 am

http://www.colliers.com/-/media/4FC164E023C2411A87CD82DBEB1A341A.ashx

At the top end of the office market, vacancy in Class A buildings ended the quarter at 5.4 percent, a
significant decrease of 70 basis points from the prior quarter primarily due to the Gavilon and
Nebraska Wesleyan transactions. In the suburban market, the overall vacancy in Class A buildings is
an incredibly low 4.6 percent; down 30 basis points from the prior quarter. To put this in perspective,
for the second quarter in a row there are currently only five non-medical buildings in the suburban
office market which have 10,000 square feet or greater available today. In addition, vacancy rates in
Class B buildings in the suburban office market increased slightly to 15.5 percent from 15.3 percent
in the prior quarter, and the vacancy rate for Class C buildings decreased to 20.5 percent from 21.7
percent, a 120 basis point decrease primarily due to the leases at 127th & “I” Street.

The CBD market continued to perform well with 140,366 square feet of net absorption due primarily
to completion of Gavilon’s building, resulting in a 9.8 percent vacancy for the CBD, a decrease of 60
basis points from the prior quarter.

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Stargazer
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Re: Downtown office vacancy rate drops to 23%

Postby Stargazer » Wed Mar 05, 2014 9:11 pm

I think we need to update the thread heading.

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Re: Downtown office vacancy rate drops to 23%

Postby Coyote » Wed Mar 05, 2014 9:16 pm

Stargazer wrote:I think we need to update the thread heading.

Yeah! Done.
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Re: Downtown office vacancy rate

Postby iamjacobm » Wed Apr 23, 2014 8:35 pm

http://www.colliers.com/-/media/Files/MarketResearch/UnitedStates/MARKETS/NE%20Research/14Q1%20Omaha%20Office.pdf

At the top end of the office market, vacancy in Class A buildings ended the quarter at a vacancy rate
of 4.3 percent, a significant decrease of another 110 basis points after a 70 basis point reduction in
the fourth quarter of 2013. In the suburban market, the overall vacancy in Class A buildings is an
exceedingly low 3.6 percent; down 100 basis points from the prior quarter. To put this in perspective,
for the third quarter in a row there are only five Class A non-medical buildings in the suburban office
market which have 10,000 square feet or greater available today. As impressive, vacancy rates in
Class B buildings in the suburban office market decreased to 14.0 percent from 15.7 percent in the
prior quarter. The vacancy rate for Class C buildings decreased slightly to 20.6 percent from 20.8
percent.

The CBD market continued to perform well with 44,734 square feet of net absorption due primarily
to the Union Pacific and Regus transactions, resulting in an 8.6 percent vacancy rate in the CBD, a
decrease of 90 basis points from the prior quarter.


Those vacancy rates are seriously impressive.

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Re: Downtown office vacancy rate

Postby iamjacobm » Sun Mar 01, 2015 11:43 pm

City- 12.1% vacancy
CBD- 8.2%
West Dodge Corridor- 5.1% best in city

This year will be a big one with even more office space well on the way along West Dodge and two major projects to finish this year in Midtown. Think and PacLife are in the midtown market according to the breakdowns. Those two could get the Midtown numbers close to 10%, that market will almost certainly have the most absorption this year.

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Re: Downtown office vacancy rate

Postby daveoma » Mon Mar 02, 2015 12:30 am

Great news for the city! Perhaps the relatively low vacancy rate will spur the construction of new office buildings downtown.

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iamjacobm
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Re: Downtown office vacancy rate

Postby iamjacobm » Mon Mar 02, 2015 1:10 am

daveoma wrote:Great news for the city! Perhaps the relatively low vacancy rate will spur the construction of new office buildings downtown.


We will see. I wish there was a little more trust in the market to get spec space built, right now nothing moves forward without a major tenant committed. Westroads Office Park building 4 was one of the few pure spec builds recently and is already 94% full.

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Re: Downtown office vacancy rate

Postby Greg S » Mon Mar 02, 2015 4:42 pm

Is it just me or is downtown development at about it's slowest in years? Even during the downturn in the economy we still have some large projects moving forward downtown.

Greg

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Brad
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Re: Downtown office vacancy rate

Postby Brad » Mon Mar 02, 2015 9:31 pm

Greg S wrote:Is it just me or is downtown development at about it's slowest in years?  Even during the downturn in the economy we still have some large projects moving forward downtown.

Greg


May be for office projects, but residential is still booming.
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Re: Downtown office vacancy rate

Postby Greg S » Tue Mar 03, 2015 9:45 am

Which are the larger residential projects?

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Brad
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Re: Downtown office vacancy rate

Postby Brad » Tue Mar 03, 2015 10:21 am

Greg S wrote:Which are the larger residential projects?


Here is the Larger Projects I stole out of the "1 Billion in Development" Thread phpBB/viewtopic.php?f=5&t=16435" onclick="window.open(this.href);return false;

Under Construction:
Blue Barn: $7 Million
Butternut: $20 Million
DoubleTree Renovation (I80): $6 Million
KETV Burlington Station: $22 Million
Old Power Plant (NuStyle): $30 Million
Flatiron:

Not to mention all the stuff that just finished... 1501, Jones 13, Limelight, The Wire, The Highline and that other one on Capitol by the civic.

Then if Shamrock, Lanoaha, and Tetrad get going, its going to be insane.
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Re: Downtown office vacancy rate

Postby Varsity » Tue Mar 03, 2015 10:45 am

A few more ongoing projects to add off the top of my head:

Power Plant
Midtown Triangle
Rochester (NoD0)
Nichol Flats (North Downtown)
34th and Harney Apartments
The Conrad (36th and Leavenworth)
A few smaller projects in Blackstone
Hotel Omaha (24th and Farnam)

and 2 more than are in the very early stages
Highline 2.0
Burlington Postal Annex

Obviously not all of these are huge projects or in the CBD.. but for the size of Omaha and the slow but steady population and job growth here, I'd say there's a lot of really good infill and plenty to watch! Still have my fingers crossed for the big time projects like Shamrock, Lanoha, and Tetrad, not to mention see some action on all of those empty lots near midtown crossing, but I'm still feeling pretty good about the development that's going on. Fun to watch!

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Brad
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Re: Downtown office vacancy rate

Postby Brad » Tue Mar 03, 2015 10:49 am

I deleted all those when I cut and past from that other thread, we were just talking about downtown.
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Re: Downtown office vacancy rate

Postby Garrett » Tue Mar 03, 2015 11:21 am

You can always consult the map too. ;-)
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Brad
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Re: Downtown office vacancy rate

Postby Brad » Tue Mar 03, 2015 11:23 am

Garrett wrote:You can always consult the map too. ;-)


What Map?
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Re: Downtown office vacancy rate

Postby Coyote » Tue Mar 03, 2015 11:39 am

Brad wrote:
Garrett wrote:You can always consult the map too. ;-)


What Map?


Garrett & Company's eOmahaForums Urban Development Map
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Re: Downtown office vacancy rate

Postby Brad » Tue Mar 03, 2015 12:14 pm

Thanks, I forgot about that thing.
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Re: Downtown office vacancy rate

Postby Garrett » Tue Mar 03, 2015 1:01 pm

I need to update it about... Also... Coyote, two t's in my name. ;-)
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Re: Downtown office vacancy rate

Postby Coyote » Tue Mar 03, 2015 1:07 pm

Garrett wrote:I need to update it about... Also... Coyote, two t's in my name. ;-)


Corrected. Sorry.
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Re: Downtown office vacancy rate

Postby Ben » Thu Jun 09, 2016 7:48 am

Given today's article about ConAgra's start to their moveout to Chicago, it got me thinking about downtown office space, vacancies, and all of the proposed projects.

Even if a major new tenant (like HDR, or someone of that size) comes downtown, aren't we already a bit saturated, nevermind all of the proposed new projects that also include some sort of office component?

Vacant/soon to be:
2 ConAgra buildings
Central Park Plaza has lots of vacant space too, if I remember correctly...

Proposed/discussed projects, with no anchor tenant:
additional ConAgra campus infill
Capitol District office space
Lanaha
Downtown Library site
Civic site

What does this mean for occupancy rates? What about delays in getting proposed structures built? Clearly banks will take all of this into account when underwriting loans on these projects... Doesn't feel good about much of the proposed stuff getting built anytime in the near future, without firm commitments from a major tenant, which will be hard to come by.

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Re: Downtown office vacancy rate

Postby choke » Thu Jun 09, 2016 1:16 pm

Ben wrote:Given today's article about ConAgra's start to their moveout to Chicago, it got me thinking about downtown office space, vacancies, and all of the proposed projects.

Even if a major new tenant (like HDR, or someone of that size) comes downtown, aren't we already a bit saturated, nevermind all of the proposed new projects that also include some sort of office component?

Vacant/soon to be:
2 ConAgra buildings
Central Park Plaza has lots of vacant space too, if I remember correctly...

Proposed/discussed projects, with no anchor tenant:
additional ConAgra campus infill
Capitol District office space
Lanaha
Downtown Library site
Civic site

What does this mean for occupancy rates? What about delays in getting proposed structures built? Clearly banks will take all of this into account when underwriting loans on these projects... Doesn't feel good about much of the proposed stuff getting built anytime in the near future, without firm commitments from a major tenant, which will be hard to come by.


I agree. I wonder about the Capitol District office space being built. I can see that being put on hold indefinitely.

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Re: Downtown office vacancy rate

Postby iamjacobm » Thu Jun 09, 2016 8:03 pm

http://www.colliers.com/-/media/files/marketresearch/unitedstates/markets/ne%20research/16q1%20oma%20office.pdf

According to this report the CBD has a vacancy rate of 8.4% which is pretty strong. Says CPP added over 12K SF of office users with DTO absorbing over 33K total. It looks like Landmark had a strong user move in that took almost 20K SF in Q1 as well.

DTO has new office builds like Alvine and Boyd Jones that will help the vacancy rate.

Overall yes there will be work to do with ConAgra's openings, but think people don't really realize that the majority of deals aren't the 300K SF HDRs, but the smaller transactions by companies most of us have never heard of.

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Re: Downtown office vacancy rate

Postby iamjacobm » Thu Jun 09, 2016 8:26 pm

I will agree that spec space seems not terribly likely, which is too bad. I think some spec space would do well DT. Lots of users don't want whole blocks of floors, but would like a floor to occupy. Kind of a catch 22 where open space is attractive to users b/c it offers flexibility and options, but then that hurts the lending market.

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Re: Downtown office vacancy rate

Postby iamjacobm » Sun Jul 17, 2016 12:58 am


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Re: Downtown office vacancy rate

Postby iamjacobm » Thu Feb 09, 2017 11:22 am

http://www.colliers.com/-/media/files/marketresearch/unitedstates/markets/ne%20research/16q4%20oma%20office.pdf

DT obviously took a big hit in 2016 with ConAgra and Gavilon. Still really strong showing city wide.

Lets hope one of those mystery companies that have toured the ConAgra space pull the trigger and we can get that CBD rate back under 10%.

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Re: Downtown office vacancy rate

Postby PotatoeEatsFish » Fri Feb 10, 2017 12:30 am

iamjacobm wrote:http://www.colliers.com/-/media/files/marketresearch/unitedstates/markets/ne%20research/16q4%20oma%20office.pdf

DT obviously took a big hit in 2016 with ConAgra and Gavilon. Still really strong showing city wide.

Lets hope one of those mystery companies that have toured the ConAgra space pull the trigger and we can get that CBD rate back under 10%.


I wonder what company is big enough to buy ConAgra...
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Re: Downtown office vacancy rate

Postby MTO » Fri Feb 10, 2017 7:38 am

I thought the plan was to demo half of that ConAgra campus for the future projects why are we trying to re occupy it?
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Re: Downtown office vacancy rate

Postby iamjacobm » Fri Feb 10, 2017 9:25 am

It won't be bought, leased out. The Landmark article mentioned a 30K SF user just toured it, need a couple of those to start moving in.

And no they won't or at least shouldn't tear down perfectly good high quality office space.

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Re: Downtown office vacancy rate

Postby buildomaha » Fri Feb 10, 2017 1:50 pm

I think we should get rid of some of the buildings on the campus. Waste of perfectly good downtown space. We have suburban offic parks for a reason.

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Re: Downtown office vacancy rate

Postby skinzfan23 » Fri Feb 10, 2017 3:11 pm

I would love to see some of those buildings razed and 4-6 story mixed used buildings in their place. Also would love to see the street grid return to normal down there, it could be a whole new extension of the Old Market.

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Re: Downtown office vacancy rate

Postby almighty_tuna » Fri Feb 10, 2017 8:12 pm

Sadly, it is good quality office space available for lease. Definitely not the repurposing we hope for, but occupancy affects the whole of downtown/midtown and if this space isn't available, maybe that will spur another company to find an innovative downtown solution.

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Re: Downtown office vacancy rate

Postby buildomaha » Fri Feb 10, 2017 10:23 pm

skinzfan23 wrote:I would love to see some of those buildings razed and 4-6 story mixed used buildings in their place. Also would love to see the street grid return to normal down there, it could be a whole new extension of the Old Market.

Yes Please.


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