Milwaukee Office Market
The third quarter of 2023 had a total of 600 SF of positive absorption. Over the past year, the market has experienced 22,611 SF of negative absorption. Since the beginning of the second quarter of 2020, the market has experienced 523,807 SF of negative absorption, representing a market contraction of 1.9%. The availability rate fell this past quarter, decreasing 96 basis points from 27.8% to 26.8%, and the vacancy rate also fell a modest 63 basis points from 20.07% to 19.4%. Over the past year, the availability rate has risen from 25.6% to 26.8% and the vacancy rate has decreased from 20.1% to 19.4%. The sublease availability rate rose to 2.4%, from 2.3% the previous quarter, for a total of 882,437 SF. The construction pipeline is nearly empty, as there are only two office buildings under construction totaling 118,788 SF.
Milwaukee Industrial Market
This past quarter, the Milwaukee industrial market experienced 516,727 SF of absorption. Over the past year, the market has absorbed 2.4 million SF. Since the beginning of the first quarter of 2020, the market has experienced 14.5 million SF of absorption, representing market growth of 5.6%. The availability rate rose this past quarter, increasing from 4.8% to 6.0%. The vacancy rate also rose this past quarter from 3.0% to 3.4%. The year-over-year availability rate has risen from 4.5% to 6.0%, and the year-over-year vacancy rate has risen from 2.8 to 3.4%. The increase in the availability and vacancy rates can be primarily attributed to new speculative buildings being delivered. This past quarter 1.8 million SF of new construction was delivered this past quarter of which only 8% was preleased.There is 3.47 million SF in the construction pipeline, of which 42% is preleased.The sublease availability rate increased to 0.3% this past quarter, (716,689 SF), which is up slightly from the previous quarter of 0.2% (627,106 SF) but still near the long-term pre-pandemic average.