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DECEMBER 2024 VOLUME36 ISSUE7 CRE MARKETPLACE PAGE 38:
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Some things never change:
Omaha’s commercial real estate market remains a model of consistency, even during challenging times By Dan Rafter, Editor
A of the build-to-suit project that Park ZilberinProperty Group is taking on forby Saputo Cheese in the Caledonia Corporate in Caledonia, Michigan. (Photo courtesy of Zilber.) A rendering new industrial building at Gretna Logistics Gretna, Nebraska, developed NewStreet Properties. (Photo courtesy ofPark NewStreet Properties.)
I
t’s a constant refrain when asking brokers and developers about the Omaha commercial real estate market: Everyone points to its resilience.
The Omaha CRE market seems to be built to weather challenging times. And that’s never been more evident than in 2024. High interest rates and construction costs remain major challenges in commercial real estate. The struggles of the office sector show few signs of lessening. But in Omaha? Yes, the city does face these same challenges. But its commercial real estate market continues to display its resilient nature. Investment sales activity and new development are down here. But deals and developments are still happening, despite the country’s economic challenges. And leasing activity? It remains strong in most sectors, especially for industrial and retail space. The professionals working this market say that they expect 2025 to be an even stronger year, one that should feature an increase in sales and development, while leasing activity remains strong.
Jon Blumenthal, chair of the Real Estate Group at Omaha-based law firm McGrath North, said that demand for industrial buildings in and around the Omaha market remains incredibly high. “Leasing demand remains very strong in Omaha’s industrial market,” Blumenthal said. “There are still more users looking for data, warehouse, storage and production sites than there is existing supply. Omaha’s office and retail markets are not as robust as in past years, but remain active and resilient.” Industrial supply throughout the Omaha market still can’t keep up with demand, even though developers are building new options. But while industrial is seeing the most leasing activity, at least one other sector is also performing well today, retail. And this sector is doing especially well in Omaha, Blumenthal said.
COLUMBUS
A look ahead: CRE pros predict increased sales, development activity for Columbus in the coming months By Dan Rafter, Editor
Sure, the Columbus, Ohio, commercial real estate market has seen development and sales activity slow in 2024. But this market didn’t see slowdowns that were as drastic as what many other major markets across the country saw. And that’s good news for the state of the CRE market in Columbus as 2025 arrives.
OMAHA (continued on page 16) COLUMBUS (continued on page 22)