The Lerner Company Releases 2021 Retail Market Summary
Based on the findings of the 2021 Retail Market Summary, published by The Lerner Company (www.lernerco.com), the Omaha Metro retail real estate market is experiencing healthy growth in many of the submarkets while maneuvering through today’s climate of external factors.
A total of 371 properties were analyzed with over 30.5 million square feet of total inventory. The vacancy square footage came in at just under 2.8 million, which provides a vacancy rate of 9.09%. Eighteen months ago, the concern for retailers revolved around customer presence in physical stores. Fast forward to now, the trouble lies in supply chain bottlenecks and a labor market crisis. While raw land prices remain relatively constant in primary retail corridors, Omaha developers and landlords feel new pains from construction costs, proving to be a challenge to new projects and developments.
The survey considers two types of retail properties, (1) multi-tenant shopping centers larger than 15,000 square feet and (2) large freestanding retail stores serving the Omaha market. Statistics are broken down by project size as well as the seven retail submarkets that comprise the Omaha Metropolitan area. To ensure that the most accurate and current data was used, all research was done in-house, with multiple verification processes (not outsourced).
In 2021, the demolition of Crossroads Mall, except for Target and the parking garage, was completed and will make way for the new mixed-use project with deliveries scheduled for 2024. Also, the leveling of Mall of The Bluffs was also completed and construction will begin for Menards Mega Store in Q2 2022. The once-vibrant Oak View Mall was purchased from the Receiver and AMC 24 Theatres closed its doors.
When you pair the improving performance of the Omaha retail environment with appealing yield spreads and investors primed with cash, you have a recipe for an active market. A few of the ongoing developments in the metro include Regency Landing, Heartwood Preserve, Gene Leahy Mall, as well as numerous projects along the Highway 370 corridor near Gretna. There is also expectation for high activity in the East Downtown submarket with UNMC’s multi-billion-dollar Project NExT commencing.
When these value-added endeavors combine with retailers listing Omaha as a high-priority market to enter, Lerner foresees the low vacancy rates to continue. Overall, the Omaha MSA has been robust during 2021, and that should continue moving forward.
The Lerner Company is a commercial real estate company located in Omaha. Serving the entire Midwest, they have been successfully helping clients and landlords since 1985. Their team specializes in the retail market, offering full services including Tenant representation, brokerage, property management, investment sales, and development. Learn more at www.lernerco.com.