NAI FMA Realty reports that the Lincoln office market reported 214,600 square-feet of positive net absorption in the second half of 2011 which made 2011 the first year that achieved positive absorption since reporting in 2008. Vacancy rose minimally during the second half to 12.1 percent overall. This phenomenon was created in large part, to the delivery of new buildings to the market and the removal of Assurity’s former office building from the rentable market at 16th & K Street, now owned by the State of Nebraska.
Although demand improved in 2011, excess vacant space still plagues the market and the active prospect pipeline remains slow. Most of the active tenants are looking to relocate within an existing or neighboring submarket. The market needs to see further organic growth and new tenants to drive continued absorption gains in 2012.
For the full Lincoln, NE Office Market Report and any other information about NAI FMA Realty, please visit their website at www.naifma.com.