In recent months, it may seem like Omaha is getting more than a facelift, but rather an entire makeover. It can be hard to keep up with all of the proposed developments in Greater Omaha. Major project proposals have been announced for Nebraska Crossing, Crossroads, Central Park Plaza, Eppley Airfield, Levi Carter Park and Adelante Park, to name a few.
Some real estate projects are well on their way to driving new job opportunities and residences in the city. Areas such as Crossroads and Central Park Plaza are going through a lot of change and will be for the next five to 10 years.
Adam Maurer, associate broker at The Lerner Co., compared the Crossroads development to Village Pointe.
“These are anchor developments for Omaha. Similar to what Village Pointe is for west Omaha, Crossroads will be for central Omaha,” Maurer said. “These developments will draw in retailers that are new to Omaha and it will be a center of activity for east Omaha.
“Village Pointe brought in tons of new job opportunities, tax revenue and residential growth, which we will see brought to the center of Omaha.”
Adam Marek, vice president at Colliers, said Central Park Plaza and Crossroads will undoubtedly make a big economic impact. The newly updated Crossroads plan will cost over $186 million, while Central Park Plaza is set to cost $163 million.
“Central Park Plaza will bring in 700-plus new residences for the downtown area,” Marek said.
Downtown Omaha projects currently under development such as the streetcar project and the new Mutual of Omaha headquarters are an impetus for more development.
“Central Park Plaza would not be doing this project of 700 new residences without the plans of the streetcar and Mutual of Omaha Tower,” Maurer said. “This is a great example of how a new project or development can totally change a submarket and community with the creation of new housing and jobs. It’s really a draw from a residential and commercial standpoint.”
Kristi Andersen, vice president of CBRE, emphasized the impact once these projects are completed.
“While these projects are not yet complete and we don’t know their overall impact yet, there’s no doubt they will spur economic impact on our community,” Andersen said. “They are great examples of the strength and resiliency of our economy and the commitment to growth by developers and our city leaders.”
Pressing On
Andersen said the new developments will be a catalyst for further investment. But that’s not to say there aren’t challenges with these big undertakings.
For example, Marek noted that Central Park has been met with a few of the biggest challenges that construction and project managers have ever seen.
“So far they’ve had a global pandemic, a shift of work from home, significant interest rate rises and construction costs,” he said.
He noted how many of the recent downtown projects, such as Steelhouse Omaha and Gene Leahy Mall, wouldn’t exist without one another.
“It’s mainly economics. If you look at interest rates right now, 200-300 basis points above where they were two years ago, financing these projects is a major challenge,” Marek said. “Construction costs are imposing a challenge in finding the right tenants for these areas, the tenant pools might be a little slimmer for that reason.”
Andersen added that the project’s continued progress, despite these challenges, indicates a strong economy.
The streetcar project is projected to strengthen another key challenge: infrastructure in downtown Omaha.
“Omaha is really making an effort, which developers and investors will respond to,” Maurer said.
Unique Attributes
While many different cities in the Midwest have seen comparable developments, a few things set Omaha apart.
“There is a suburban lifestyle power center in Nebraska Crossing, which targets a regional draw since people come in from Lincoln and Grand Island, and targets more retailers who are new to Nebraska,” Maurer said.
“Crossroads is central to Omaha, it is an anchor for Omaha where you will still find retail but more entertainment and restaurant concepts. Central Park Plaza’s target is growing the urban core and growing multi-family availability. These are three different projects that are all adding to Omaha in very different ways.”
Nebraska Crossing has been exemplary in commercial real estate development, and with its proposed Good Life District, it will bring even more development to the Gretna area.
“Nebraska Crossing as it exists today is a best-in-class retail center, and there were many obstacles from a development standpoint that it faced, but Rob Yates created a shopping center that is almost 100% occupied today,” Marek said.
There are opportunities when leasing or selling commercial properties within these new developments.
“New developments present new opportunities for existing businesses and retailers to expand or move to a more desirable location surrounded by amenities, which is desirable for companies looking for ways to retain and recruit employees,” she said. “These new mixed-use developments are also attractive to new-to-market retailers that have been eyeing Omaha as a new location site.”
These developments align with Greater Omaha’s long-term economic and urban development goals.
“We need the urban core to be strong to attract new retailers to Omaha, even if they are going to be in the suburbs or at 72nd and Dodge,” Maurer said. “Having a community that values retail and shopping draws different retailers to our community who might look elsewhere instead.”
The projected growth for these developments will be airing on the side of caution.
“Unfortunately, these projects do take time, it’s important to be getting the right tenant rather than settling and having everyone be disappointed; it’s going to be slow and steady, with Crossroads making it into a new phase,” Maurer said. “They are all set up in phases, and for the long term they are great projects to grow in Omaha.”
These projects impact the overall real estate market and economic landscape of Greater Omaha.
“It’s a domino effect with Mutual of Omaha going downtown; we’ll be seeing more commitments in the urban core. No one wants to be the first one,” Maurer said. “It’s really about finding the right long-term office users for new developers in downtown Omaha.
“A prominent destination for Omaha will always be 72nd and Dodge, and we’ll be seeing more developers invest in prominent corridors to come.”
