Milwaukee Office Market
Over the past four quarters, the market has experienced 201,583 square feet of negative absorption. Despite the substantial negative absorption, the vacancy rate has only increased by 70 basis points, reaching 21.0% up from 20.3% in 3Q 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 28.69M SF. This past quarter, the availability rate fell a modest 90 basis points from 27.1% to 26.2%. Since the third quarter of 2022, the availability rate has gradually risen from 25.8% to it current level of 26.2% The construction pipeline is now empty, as Mayfair Medical Commons, a two-story, 45,823 SF outpatient facility, delivered this past quarter, and no new project have been announced.
Milwaukee Industrial Market
This past quarter, the Milwaukee industrial market experienced 602,350 SF of absorption. Over the past year, the market has absorbed 2.24 million SF. Since the beginning of the first quarter of 2020, the market has experienced 18 million SF of absorption, representing market growth of 8.9%. This past quarter, the availability rate increased 30 basis points to 6.3%, and the vacancy decreased slightly to 3.6% from 3.7%. 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 2.2 million SF of new construction, of which only 54% is now occupied. There is 2.3 million SF in the construction pipeline, of which 91% is preleased.