Milwaukee Office Market
Over the past four quarters, the market has experienced 236,666 square feet of negative absorption. Despite the substantial negative absorption, the vacancy rate has only increased by 18 basis points, reaching 20.75% up from 20.57% in 2Q 2023. While there has a been a lot of movement on the surface, the market’s occupied SF is relatively unchanged since the second quarter of 2020 when it measured 28.88M SF it now stands at 28.74M SF. This past quarter, the availability rate fell a modest 129 basis points from 28.3% to 27.0%. Since the third quarter of 2022, the availability rate has gradually risen from 25.8% to it current level of 27.0% The construction pipeline is nearly empty, as there is only one office building under construction: Mayfair Medical Commons is a two-story, 45,823 SF outpatient facility
Milwaukee Industrial Market
This past quarter, the Milwaukee industrial market experienced 1,004,953 SF of absorption. Over the past year, the market has absorbed 2.04 million SF. Since the beginning of the first quarter of 2020, the market has experienced 16.8 million SF of absorption, representing market growth of 6.3%. This past quarter, the availability rate remained flat at 6.0% and the vacancy decreased slightly to 3.9% from 4.1%. The market is currently recalibrating, it is expected that vacancy rates will remain steady as demand comes into balance with new construction and existing availabilities. Throughout 2024 there has been 1.84 million SF of new construction, of which only 48% is now occupied. There is 932,936 SF in the construction pipeline, of which 81% is preleased.