Milwaukee’s industrial space vacancy rate declined a bit during the first quarter of this year, bucking the national trend, according to a report by Boston-based Colliers International.
The Milwaukee area’s industrial space vacancy rate was 7.6 percent during the first quarter, compared with 7.7 percent for the fourth quarter of 2006, according to the report.
Milwaukee’s industrial space vacancy rate remains below the national average, according to the report. The nation’s industrial space vacancy rate for the first quarter was 8.15 percent, up slightly from 8.11 percent during the fourth quarter of 2006.
Honolulu, at 1.9 percent, and Los Angeles, 3.0 percent, had the lowest first quarter industrial space vacancy rates, according to the report. Boston, 22.5 percent, and Little Rock, Ark., 17.7 percent had the highest vacancy rates.
Chicago had an 8.9 percent industrial space vacancy rate for the first quarter, down a bit from the 9.0 vacancy rate from the fourth quarter of 2006, according to the report.
The national industrial real estate market’s absorption during the fourth quarter was considerably below anticipated levels, according to Colliers. However, even though demand for industrial space fell far short of expectations, rents increased a bit during the first quarter.
Nationally, first quarter industrial space absorption was 27.3 million square feet, compared with 36.9 million square feet during the fourth quarter and 40 million square feet from the first quarter of 2006.
"Despite a slow start, it’s too early to sound the alarm," said Ross Moore, senior vice president and director of market and economic research at Colliers International. "The underlying economy, with the exception of the housing sector, continues to register measured growth, which we believe will eventually help bolster the warehouse leasing market."
