Absorption Accelerates As Office Market Expands

The Omaha office market again experienced positive absorption of over 100,000 square feet for the first quarter of 2017, which is now three of the last four quarters exceeding the 100,000 square feet benchmark. Average annual absorption over the last ten years is approximately 62,500 square feet per quarter. The first quarter absorption of 124,213 square feet doubles the ten year average. The positive absorption impacted the vacancy rate resulting in a decrease of 100 basis points bringing the overall vacancy to 11.2 percent, down from 12.3 percent at the end of first quarter in 2016 and a 10 basis point decrease from the end of 2016.