Omaha Warehouse Market Report 2025: Your Guide to Midwest Crossroads Industrial Space
Last Updated: December 2025
If you’re looking for warehouse space in Omaha, you’re entering one of America’s most strategically positioned and undervalued industrial markets. Nebraska’s largest city sits at the geographic center of the continental United States, offering one-day truck access to markets from Chicago to Denver, Minneapolis to Dallas – all at rates that make coastal logistics managers weep with envy.
Let me walk you through what’s really happening in this market, from the I-80 corridor’s distribution backbone to Council Bluffs’ cross-river opportunities. Whether you’re a small business owner looking for affordable warehouse space with national reach or a broker helping clients discover the Midwest’s best-kept logistics secret, here’s what you need to know.
Why Omaha Punches Above Its Weight
MARKET SNAPSHOT: OMAHA WAREHOUSE FACTS
| Metric | Value |
|---|---|
| Average Lease Rate | $5.50/sq ft NNN (2025) |
| Total Industrial Inventory | 95 million sq ft |
| Current Vacancy | 6.1% (Q3 2025) |
| Historical Vacancy Average | 5.8% (10-year average) |
| Net Absorption (Trailing 12 Months) | 1.8 million sq ft |
| Metro Population | 985,000 |
| Fortune 500 Headquarters | 5 (highest per capita in U.S.) |
The numbers tell part of the story, but here’s what they mean for you: Omaha offers perhaps the best value proposition in American logistics – rock-bottom costs combined with genuine geographic advantage. At $5.50/sq ft NNN, you’re paying less than half what you’d spend in Chicago and a fraction of coastal market rates.
But here’s what makes Omaha special: This isn’t just cheap space – it’s strategically positioned cheap space. The I-80 and I-29 intersection creates a natural crossroads for east-west and north-south freight movement. Within a one-day drive, you can reach 25% of the U.S. population. Add Omaha’s business-friendly environment and stable workforce, and you understand why five Fortune 500 companies chose this city of under a million people for their headquarters.
The Submarkets That Matter Most
Sarpy County (Papillion, La Vista, Bellevue)
Omaha’s growth engine, anchored by Werner Enterprises and growing distribution development along Highway 370 and I-80.
Key characteristics:
- Highest concentration of new Class A product
- Average rates: $5.50-7.00/sq ft NNN
- Werner Enterprises global headquarters
- Growing e-commerce fulfillment presence
- Highway 370 corridor development accelerating
- Strong residential growth supporting workforce
West Omaha (Elkhorn, Gretna)
The western expansion zone, where new residential development meets emerging industrial parks along the I-80 corridor.
Key characteristics:
- Average rates: $5.25-6.50/sq ft NNN
- Newest speculative development
- I-80 access for national distribution
- Growing from agricultural to industrial character
- Nebraska Crossing retail/distribution hub
- Attractive land costs enabling new construction
North Omaha / Airport Area
The established industrial core, adjacent to Eppley Airfield and the traditional manufacturing base.
Key characteristics:
- Average rates: $4.50-6.00/sq ft NNN
- Mixed building stock from 1960s-present
- Airport adjacency for time-sensitive freight
- Union Pacific Railroad headquarters nearby
- Older but functional space at value pricing
- Infrastructure in place
Council Bluffs, Iowa
The cross-river partner city offers Iowa’s business environment with immediate Omaha market access.
Key characteristics:
- Average rates: $4.75-6.00/sq ft NNN
- Iowa tax incentives available
- Google data center presence validates infrastructure
- I-80 and I-29 intersection
- UP’s Bailey Yard (world’s largest rail classification yard) nearby
- Different state regulations may benefit certain operations
Downtown / Midtown Industrial
Urban industrial pockets serving local distribution and manufacturing needs.
Key characteristics:
- Average rates: $4.00-5.50/sq ft NNN
- Older multi-story and single-story buildings
- Constrained parking and trailer access
- Ideal for local delivery operations
- Redevelopment pressure in some areas
- Limited availability
What Small Businesses Need to Know
Omaha rewards businesses that understand its unique advantages. This isn’t about competing with Chicago or Kansas City on volume – it’s about leveraging geographic position and cost structure for specific distribution strategies.
Your advantages in this market:
- Exceptional affordability – Among lowest warehouse costs nationally
- Geographic centrality – True U.S. heartland positioning
- One-day reach – 25% of U.S. population accessible by truck
- Fortune 500 ecosystem – Berkshire Hathaway, Union Pacific, Mutual of Omaha HQ’d here
- Workforce stability – 3.1% unemployment with Midwest work ethic
- Rail access – Union Pacific headquarters city; extensive rail infrastructure
- Business-friendly environment – Nebraska consistently ranks top-15 for business climate
- No inventory tax – Nebraska doesn’t tax business inventory
Watch out for:
- Limited labor pool – Sub-million metro population constrains rapid scaling
- Winter operations – December-March weather requires contingency planning
- Market depth – Large-block 300,000+ sq ft options limited
- Air freight – Eppley Airfield serves limited cargo routes
- Secondary market perception – May not fit brand requirements for some companies
- Growth ceiling – Market can’t absorb mega-distribution projects
- Trucking availability – Driver shortages affect all markets, including Omaha
The Fortune 500 Factor
Corporate Headquarters Validate Omaha’s Business Environment
Omaha hosts more Fortune 500 headquarters per capita than any U.S. city:
| Company | Industry | 2024 Fortune Rank |
|---|---|---|
| Berkshire Hathaway | Financial/Conglomerate | #6 |
| Union Pacific | Railroad | #139 |
| Kiewit | Construction | #203 |
| Mutual of Omaha | Insurance | #351 |
| TD Ameritrade (Schwab) | Financial | — |
These companies chose Omaha for reasons that benefit industrial users: affordable operations, stable workforce, central location, and business-friendly governance. The corporate presence also creates a sophisticated business services ecosystem unusual for a metro under one million.
The Rail Advantage
Union Pacific’s presence makes Omaha a rail logistics hub:
- Bailey Yard (North Platte): World’s largest rail classification yard, 150 miles west
- Intermodal facilities: UP operates major intermodal terminals serving the market
- Bulk shipping: Rail-served sites available for bulk commodity operations
- Transload facilities: Options for rail-to-truck conversion
For businesses with rail shipping needs, Omaha offers infrastructure that many larger metros can’t match.
Real Numbers from Real Deals
Recent Notable Transactions:
Werner Enterprises – 200,000 sq ft campus expansion, Papillion
- Major trucking company doubling down on headquarters market
Amazon – Delivery station and sortation facilities across metro
- E-commerce validation of market logistics positioning
Google – Data center expansion, Council Bluffs
- $2 billion+ investment validating regional infrastructure
Rate Ranges by Submarket:
| Submarket | Rate Range ($/sq ft NNN) |
|---|---|
| Sarpy County (Papillion, La Vista) | $5.50-7.00 |
| West Omaha (Elkhorn, Gretna) | $5.25-6.50 |
| North Omaha/Airport | $4.50-6.00 |
| Council Bluffs, IA | $4.75-6.00 |
| Downtown/Midtown | $4.00-5.50 |
| Sublease Opportunities | 5-15% below direct rates |
Operating Cost Considerations:
- Property taxes: Approximately 1.8% of assessed value
- Triple net expenses: $2.00-2.75/sq ft annually
- Utilities: Competitive natural gas and electricity rates
- Heating costs: Budget for Nebraska winters
- No state inventory tax: Significant savings for distribution operations
Regional Context: Omaha vs. Kansas City vs. Des Moines
Omaha competes with neighboring markets for Midwest distribution. Here’s how they compare:
| Factor | Omaha | Kansas City | Des Moines |
|---|---|---|---|
| Average Rent | $5.50/sq ft | $6.25/sq ft | $5.75/sq ft |
| Vacancy | 6.1% | 7.2% | 5.8% |
| Metro Population | 985,000 | 2.2 million | 725,000 |
| Fortune 500 HQs | 5 | 3 | 1 |
| Rail Infrastructure | Excellent | Excellent | Good |
| Air Cargo | Limited | Moderate | Limited |
Omaha’s sweet spot: Companies that need true geographic centrality, value Warren Buffett’s hometown business culture, or can leverage Union Pacific rail connections. Kansas City offers larger scale; Des Moines offers comparable value with smaller market dynamics.
Looking Ahead: What’s Coming in 2025-2026
The Good:
- Net absorption positive – 1.8 million sq ft absorbed trailing 12 months
- Balanced market – 6.1% vacancy supports healthy negotiations
- New Class A development – Modern specs becoming available
- Corporate stability – Fortune 500 presence anchors business environment
- Infrastructure investment – Highway and rail improvements ongoing
- E-commerce growth – Amazon and others expanding regional presence
- Cost advantage sustained – Land costs keep development economics favorable
The Challenges:
- Labor pool constraints – Sub-million population limits rapid scaling
- Weather disruption – Winter storms can interrupt operations
- Limited large-block product – Mega-distribution projects look elsewhere
- Air cargo limitations – Direct freight routes limited
- Population growth modest – Metro growing ~1% annually
- Regional competition – Kansas City and Denver compete for major deals
Making Your Move: Practical Next Steps
If you’re a small business owner:
- Leverage the cost advantage – Omaha offers 50%+ savings vs. coastal markets
- Explore Sarpy County – Newest product with best logistics access
- Consider Council Bluffs – Iowa incentives with Omaha market access
- Plan for seasonality – Winter operations require contingency planning
- Evaluate rail needs – UP presence creates unique opportunities
- Factor total costs – Include heating in operational budgeting
- Understand geographic reach – Map your one-day delivery territory
If you’re a broker:
- Lead with value story – Cost comparison vs. larger markets is compelling
- Emphasize Fortune 500 validation – Berkshire, UP chose Omaha for reason
- Highlight geographic centrality – One-day reach maps resonate
- Position as “right-sized” market – Not competing for mega-deals
- Quantify rail advantage – UP headquarters means infrastructure
- Connect corporate culture – Buffett effect creates business credibility
The Bottom Line
Omaha represents something increasingly rare in American logistics: a market that delivers genuine strategic value at Midwest pricing. This isn’t about accepting a secondary market to save money – it’s about leveraging one of America’s most central locations, served by one of its most sophisticated rail networks, anchored by Fortune 500 companies that chose this city deliberately.
The 6.1% vacancy rate indicates a market in healthy equilibrium. There’s availability without oversupply, and demand without the frenzy that makes larger markets unpredictable. For companies that need central U.S. distribution, Omaha delivers the fundamentals without the premium pricing.
This isn’t a market for everyone. If you need 500,000+ square feet, look to Kansas City or Chicago. If you need international air cargo, Omaha isn’t your answer. But for regional distribution, e-commerce serving the heartland, or companies seeking the benefits that attracted Warren Buffett to keep Berkshire Hathaway here, Omaha offers a compelling value proposition.
Nebraska’s largest city has quietly built one of America’s most efficient logistics platforms. The question is whether you’ll discover what the Fortune 500 already know – that Omaha delivers.
