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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 REPORT Source: 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
