Omaha Forums

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

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.

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

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.

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

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

Greg S wrote:Which are the larger residential projects?

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

Brad wrote:

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

What Map?

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

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.

iamjacobm wrote:http://www.colliers.com/-/media/files/m ... office.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%.

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.

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.

iamjacobm wrote:CBD having a nice bounce back from ConAgra. 58K SF absorbed this quarter and 112K SF YTD absorption. According to the report the CBD was as low as 7.9% vacancy, bounced up to 15.5% with the job losses and is trending back down at 12.7% now.

http://www.colliers.com/-/media/files/m ... office.pdf

The Omaha Office Market experienced positive absorption for a fourth consecutive quarter and six out of the last seven quarters. The total absorption for the third quarter of 2017 was 68,122 square feet and 225,985 square feet for the year-to-date. Average annual absorption over the last ten years is approximately 250,000 square feet annually and year-to-date absorption is tracking accordingly. The positive absorption in the quarter impacted the vacancy rate resulting in a decrease of 30 basis points bringing the overall vacancy rate to 10.6 percent; the lowest rate in the past 18 years.

For the second quarter in a row, the leasing highlight in the Omaha office market was the Downtown submarket with positive absorption of 46,165 square feet. The Downtown submarket vacancy rate has been on quite a rollercoaster ride the past few years rising from a low 7.9 percent vacancy rate at the end of 2015 to a high vacancy rate of 15.5 percent in 2016. With the positive absorption this quarter, the Downtown submarket’s vacancy rate is now at 11.7 percent, a 100 basis point decrease from the prior quarter and a 220 basis point decrease year-to-date.