Logistics
Specialized Industrial
Flex
Market
Vacancy Change (YOY)
Net Absorption SF
Deliveries SF
Rent Growth
Sales Volume
52,978,885
31,703,710
9,060,178
93,742,773
1.1%
428 K
1.5 M
1.1%
$184 M
4.0%
1.7%
8.2%
3.6%
3.6%
974,667
911,147
1.4%
$87.3M
$5.76
$5.89
$8.15
$6.04
3.6%
483,442
849,234
2.1%
N/A
4.1%
2.2%
10.0%
4.0%
6.9%
4,493,681
2,399,043
3.8%
$192.8M
(161,481)
(19,756)
(52,396)
(233,633)
2007 Q1
2008 Q1
2014 Q1
2017 Q1
2019 Q4
0
0
0
0
2.2%
(529,184)
60,476
-2.0%
$21M
299,725
202,578
132,705
635,008
2018 Q1
2011 Q4
2010 Q2
2010 Q3
2009 Q4
Current Quarter
Annual Trends
RBA
12-Month
Vacancy Rate
Historical Avg.
Market Rent
Forecast Avg.
Availability Rate
Peak When
Net Absorption SF Deliveries SF
Trough When
Under Construction
KEY INDICATORS
NET ABSORPTION, NET DELIVERIES & VACANCY
Q2 INDUSTRIAL MARKET REPORTSource: Co-Star Industrial Market Report
Locally, after a peak sales volume in 2019 with more than $180 million in sales, we have seen a decline in product available for purchase both vacant and leased. Owner/users are having difficulty finding vacant buildings to purchase or prime land to build on, and investors are having difficulty to find leased product. Nearly 630,000 SF of new or under construction space has/or will be delivered. Driving the square footage increase are Omaha Box (335,000 SF), Warren Distribution (211,000 SF), and R&R (250,000 SF).
CNBC published a report that the U.S. may need another 1 billion square feet of warehouse space by 2025, as e-commerce demand booms. People are getting used to shopping through delivery only and even expecting food service to be delivered. The expectation is no longer two-day delivery, but same-day delivery, which will force major tenants to have a footprint more localized for delivery needs.
Nationally, Amazon and other e-commerce firms continue to see increased demand in warehouse space. We foresee requirements for distribution, fulfillment, cold storage, and data center space will only grow in a post-COVID recovery for space needs. We expect to see an increase in sale-leaseback transactions by cash-strapped companies looking for liquidity on their balance sheet and other national “last mile” e-commerce, driving the absorption of leasing in the region. Omaha continues to be behind in the consideration for regional distribution space as major tenants continue to use Des Moines or Kansas City for the regional hub that covers typically 500-mile radius from such location.
13340 California Street STE 100, Omaha, NE 68154 | 402 697 8899 | omnepartners.com
PROPERTIES UNDER CONSTRUCTION
SALES VOLUME & MARKET SALE PRICE PSF
21 635,008 0.7% 84.0%
Properties Square Feet Percent of Inventory Preleased
MARKET RENT PER SQUARE FEET
13340 California Street, STE 100Omaha, NE 68154
402 697 8899omnepartners.com
Alex Epstein402 505 [email protected]
Matt Edney402 505 [email protected]