Omaha is going through a period of favorable supply trends, resulting in improvements in multifamily fundamentals.
CBRE's multifamily report shows that deliveries were nonexistent in the first quarter. This came as rents increased by 0.9 percent from the previous three months and 2.1 percent year-over-year to reach $1,300 per unit.
"By submarket, the highest average rent is $1,587 per unit in the Southwest submarket. By age, properties built between 2010 and 2025 represent the highest rent with an average rent of $1,499 per unit," CBRE said.
Vacancy was a little more of mix bag, depending on how you look at it, meanwhile. Quarterly, the rate fell by 30 basis points to eight percent. Yet, year-over-year, the category spiked by over two percentage points.
While no deliveries occurred in the first quarter — that could change in the short-term. According to CBRE, another 22 properties across 3,477 units are under construction, with most of the active pipeline concentrated in the Downtown and the Central submarkets of Omaha, with 30.6 percent and 27.3 percent, respectively.
In the second quarter, CBRE estimates that two multifamily projects will hit the market, during the second quarter including 307-unit Thread Apartments in Sarpy East and 289-unit Heartland Flat in Suburban Lincoln. That is projected to be followed by 295-unit Broadmoor at Heartwood in the Southwest and 203-unit Cherry Creek Village I in the North/Northwest, in the third quarter.
The two largest multifamily sales in the first quarter in Omaha included 240-unit The Apex at Twin Creek and 204-unit Latitude 4, which traded for $44.20 million and $38.50 million, respectively. The rest of the sales were seven figures or less, led by Deerfield Apartments, which sold for $7.45 million.
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