The Omaha Commercial Real Estate Market

Jun 17, 2024

For years, the Omaha commercial real estate market has proven to be a stable, steadily growing region, ripe with opportunities that attract brokers and principles alike. When discovering commercial real estate opportunities, investors rely on data to make informed, profit-driving decisions. Crexi bridges the gap between the different parties, helping tenants, buyers, and brokers find the best deals in the market.

On any given day, millions of buyers and tenants use the platform's search tool to find Omaha properties that match their criteria. Thousands of brokers also use Crexi's sales and leasing suite of tools to connect and transact with leads.

Crexi's goal is to centralize the transaction process in an online hub where commercial real estate buyers, brokers, tenants, and appraisers enjoy complete transparency throughout each deal. Helping brokers close $615 billion in asset sales and representing upward of $7 trillion in value since its 2016 launch, Crexi is proud to serve Omaha as the fastest-growing online commercial real estate marketplace.

The State of Commercial Real Estate in Omaha

Omaha, Nebraska, is the state's largest city and a key economic hub in the Midwest. Situated along the Missouri River, Omaha is known for its vibrant downtown area, with an impressive skyline featuring prominent landmarks like the First National Bank Tower and the Woodmen Tower.

The economy is diverse, with thriving sectors including finance, healthcare, technology, and agriculture. Major corporations such as Berkshire Hathaway, Union Pacific Railroad, and Mutual of Omaha have headquarters here.

The city is part of the larger Omaha-Council Bluffs metropolitan area, which extends into Iowa. With extensive rail and highway networks, the region is a central transportation, logistics, and trade location.

Home to a mix of historical neighborhoods and modern developments, the city has experienced steady population growth and commercial real estate development. The unique blend of economic vitality, strategic location, and community charm makes Omaha an attractive place to live and do business.

Omaha Regional Breakdown

Omaha has seen a steady influx of new residents over the years, fueled by the city's strong job market and relatively low cost of living. The expanding population supports the city's ambitious urban development projects and contributes to its economic stability, providing a solid foundation for growth and investment.

Omaha is home to more than 483,000 people in the city and nearly 977,000 people in the metropolitan area.
The city has added over 74,000 residents since 2010, based on data from the most recent census.
Douglas County, where Omaha is the county seat, is projected to grow by 13% over the next 30 years.
The Omaha-Council Bluffs metropolitan area includes the cities of Omaha, Bellevue, Council Bluffs, Fremont, and La Vista.
The median age is 36.7, a little less than the figure in the US, according to data from CensusReporter.org.
Per capita income is $42,711, about the same as in the US.
Median household income is $79,638, about 10% higher than the amount in the United States.
The cost of living in Omaha is 7% lower than the national average.

The Omaha Job Market

Omaha's economy is powered by a combination of longstanding industries and emerging sectors. Thanks to strategic public-private partnerships and investment in urban development projects, the city has seen consistent job growth, particularly in technology and advanced manufacturing.

GDP for the Omaha-Council Bluff metropolitan statistical area is over $73.5 billion, leading the nation in GDP growth.
Omaha is home to four Fortune 500 companies and three Fortune 1000 companies, including Berkshire Hathaway, Union Pacific, Mutual of Omaha, and Valmont Industries, according to regional data from the Greater Omaha Chamber.
Major employers in the metropolitan area include Offutt Air Force Base, Nebraska Medicine, CHI, Methodist Health System, First National Bank, Mutual of Omaha, Fiserv, and Union Pacific Railroad.
Employed population of the Omaha-Council Bluffs metro area is nearly 502,000 and has grown by nearly 1% over the past year, according to information on DataUSA.com.
Unemployment rate is 2.8% as of March 2024.
Key industry sectors include agriculture, food processing, insurance, transportation, healthcare, and education.
Omaha is home to more than $8 billion in new commercial real estate projects, including the Mutual of Omaha Tower, The RiverFront, The Mercantile mixed-use development, and a third Google Data Center.
U.S. News & World Report ranks Omaha as one of the best places to live in the US in 2024-2025, due to its low unemployment rate and cost of living.
The Omaha area is home to three major institutions of higher education: the University of Nebraska at Omaha, Creighton University, and Metropolitan Community College.
Nearly 40% of residents have a bachelor’s degree or an advanced degree, a rate about 10% higher than in the US.
Omaha's transportation infrastructure includes major interstates I-80 and I-29, Eppley Airfield (one of the busiest in the state), and the Port of Omaha on the Missouri River for shipping activities.

Omaha Industrial Market

Omaha's industrial market is currently experiencing a low overall vacancy rate despite reporting negative absorption for the first time since 2020. This recent trend is largely due to an influx of new speculative developments delivered vacant. However, a significant amount of build-to-suit projects in the pipeline are expected to drive positive absorption later in the year. Overall asking rents have slightly increased, with flex properties commanding the highest rates in the market.

Market overview (Cushman & Wakefield Q1 2024 Omaha Industrial Report)

Inventory: 107,186,183 SF
Vacancy rate: 2.6%
Net absorption: -202,785 SF (Q1 2024)
Deliveries: 236,517 SF
Under construction: 4,837,573 SF
Key leases by tenant: Kamps, J. Skinner, Midwest Wheel Companies
Largest submarkets: Sarpy West, South Central Omaha, Northeast Omaha

Crexi Insights

These are the most recent lease and sales trends from Crexi Insights (as of May 2024):

For Lease (active)

Asking rate/SqFt (median): $8 per year
Median SqFt/listing: 6,402
Days on market: 232
Total listings on Crexi: 140 spaces

For Sale (active)

Median asking price: $1.94 million
Price/SqFt: $111
Asking cap rate: 6.0%
Days on market: 200
Total listings on Crexi: 36

Sales Comps (past 12 months)

Median sold price: $737,000
Sold price/SqFt: $88
Total sales volume: $83.1 million
Sold cap rate: 7.0%
Median SqFt sold/transaction: 8,850
Total SqFt sold: 1.85 million
Days on market (median): 137

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Omaha Office Market

The Omaha office market is experiencing its second quarter of negative absorption. Despite this, vacancy rates have decreased significantly since late 2021. Key demand drivers for office space in Omaha include the finance sector, healthcare institutions, and the growing presence of technology firms.

Market overview (Colliers 2024 Q1 Omaha Office Market Report)

Inventory: 35,134,800 SF
Vacancy rate: 7.8%
Net absorption: -52,726,000 SF (Q1 2024)
Under construction: 1,299,335 SF
Key leases by submarket: Suburban West Dodge 50,747 SF, Midtown 29,266 SF, Midtown 27,723 SF
Largest submarkets: Downtown, Midtown, Suburban West Dodge, Southwest

Crexi Insights

For the latest updates on the office market in Omaha, turn to Crexi Insights. Here is the detailed information on the recent sales and leasing trends as of May 2024:

For Lease (active)

Asking rate/SqFt (median): $19 per year
Median SqFt/listing: 2,721 SF
Days on market: 333
Total listings on Crexi: 822 spaces

For Sale (active)

Median asking price: $2.82 million
Price/SqFt: $167
Asking cap rate: 6.5%
Days on market: 220
Total listings on Crexi: 48

Sales Comps (past 12 months)

Median sold price: $675,000
Sold price/SqFt: $122
Total sales volume: $131 million
Sold cap rate: 7.2%
Median SqFt sold/transaction: 10,200 SF
Days on market (median): 352

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Omaha Retail Market

Omaha's retail market continues to thrive, driven by high demand for new construction and strong positive absorption throughout 2023. Despite developers' efforts to keep up, much of the new space is claimed before completion, leading to tight overall vacancy and slower tenant expansion. This robust demand has increased asking rents, with prime areas like Downtown Omaha commanding premium prices.

Market overview (Cushman & Wakefield Q4 2023 Omaha Retail Report)

Inventory: 65,446,454 SF
Vacancy rate: 4.5%
Net absorption: 43,764 SF (Q4 2023)
Under construction: 224,374 SF
Key leases by tenant: Fowling Warehouse, Nordstrom Rack, MW Climbing
Largest retail submarkets: Southwest Omaha, Central Omaha, Sarpy East, Council Bluffs

Crexi Insights

Lease and sales trends from Crexi Insights (as of May 2024):

For Lease (active)

Asking rate/SqFt (median): $17 per year
Median SqFt/listing: 2,131 SF
Days on market: 342
Total listings on Crexi: 552 spaces

For Sale (active)

Median asking price: $1.5 million
Price/SqFt: $202
Asking cap rate: 6.0%
Days on market: 195
Total listings on Crexi: 59

Sales Comps (past 12 months)

Median sold price: $415,000
Sold price/SqFt: $111
Total sales volume: $106 million
Sold cap rate: 7.2%
Median SqFt sold/transaction: 4,073 SF
Days on market (median): 154

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Omaha Multifamily Market

The Omaha multifamily market is experiencing a slight uptick in vacancy rates, increasingly modestly both quarter-over-quarter and year-over-year. However, average asking rents continue to climb, driven by demand for newer properties and prime locations. The market remains active, with significant construction underway, particularly in the Southwest, Central, and Downtown submarkets, which account for many of the new units being developed.

Market overview (CBRE Omaha Multifamily Figures Q1 2024)

Total housing units: 412,830
Multi-unit inventory: 81,030 units
Vacancy rate: 7.0%
Average asking rent: $1,183
Annual rent growth: 2.4%
Units delivered: 149
Under construction: 1,782 units
Notable sales: Antelope Gardens (132 units), Ashley Square (120 units), Ralston House (97 units)
Largest submarkets: Central, North/Northwest, Southwest, South

Crexi Insights

Here are the most recent Multifamily Insights from Crexi (as of May 2024):

For Sale (active)

Median asking price: $787,000
Price/SqFt: $112
Asking cap rate: 6.4%
Days on market: 259
Total listings on Crexi: 18

Sales Comps (past 12 months)

Median sold price: $295,000
Sold price/SqFt: $77
Total sales volume: $59.7 million
Sold cap rate: 6.6%
Total SqFt sold: 852,000
Days on market (median): 90

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Get more in-depth Omaha market data with Crexi Intelligence.