Nebraska is continuing to see slow but steady growth in the office market. “Being a conservative Midwestern city, we have seen little — if any — downturn in the market,” says Richard Meginnis, senior vice president with Lincoln, Nebraska-based NAI FMA Realty. The fastest growing segment of the market is smaller office buildings for owner/users.

Lincoln has historically had low office vacancy rates due to a steady economy and an absence of overbuilding. Even with SRI/Gallup vacating its headquarters and moving to Omaha, the market will likely feel little impact since this facility is not suitable for multi-tenant occupancy.

Lincoln is developing in multiple directions. The majority of the office is taking place in the south side of the city, since many company owners tend to live in the southern part of town.

Class A rental rates in Lincoln range between $14 per square foot and $18 per square foot in the central business district (CBD) and between $16 per square foot and $24 per square foot in the suburban market. The occupancy rate for Class A space in the CBD is 91 percent and 94 percent in the suburbs. The occupancy rate for Class B space in the CBD is 80 percent and 88 percent in the suburbs.


©2003 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.