Milwaukee Office Market
In the past year, the market has experienced negative absorption of 376,875 square feet. Despite the substantial negative absorption, the vacancy rate has only increased by 52 basis points, reaching 20.36% from 19.84%. This can be attributed to the conversion of vacant buildings into multi-family or industrial use. Since the second quarter of 2020, the market has experienced a total negative absorption of 788,924 square feet, resulting in a contraction of 2.13%. This past quarter, the availability rate rose a modest 5 basis points from 27.20% to 27.25%. Looking at the past year, the availability rate has gradual risen from 26.33% to its current level of 27.25%. The construction pipeline is nearly empty, as there is only two office buildings totaling 100,288 SF under construction: The Grain and Loomis Crossing.
Milwaukee Industrial Market
This past quarter, the Milwaukee industrial market experienced 800,046 SF of absorption. Over the past year, the market has absorbed 2.35 million SF. Since the beginning of the first quarter of 2020, the market has experienced 16.0 million SF of absorption, representing market growth of 6.0%. This past quarter, the availability rate rose to 5.8% from 5.7% and the vacancy rate rose to 3.5% from 3.2%. Over the past year, the availability rate has risen to 5.8% from 4.3%, and the vacancy rate has risen to 3.5% from 2.7%. The market is recalibrating, with vacancy expected to continue to rise into the first two quarters of the new year as construction deliveries outpace net absorption. This past quarter 1.72 million SF of new construction which only 32% was preleased.