The southeastern Wisconsin industrial real estate market continues to post impressive results and absorbed 712,400 square feet of space in the first quarter, the 16th consecutive quarter of positive absorption for the market, according to the latest report from Xceligent and the Commercial Association of Realtors Wisconsin.
However, the region’s industrial space vacancy rate remained flat in the quarter at 6.12 percent, as new construction is adding more space to the market. The first quarter absorption was down from more than 1.5 million square feet of absorption in the fourth quarter of 2013.
The largest industrial space absorption in the first quarter was the completion of a 425,000-square-foot distribution center in Sturtevant for United Natural Foods. The large increase in supply resulted in a slight increase in the industrial space vacancy rate in Racine County.
The second largest industrial space absorption in the first quarter was Baptista’s lease of 246,348 square feet of space at 10000 S. Franklin Dr. in Franklin, formerly occupied by Harley-Davidson.
First quarter industrial real estate market performance by county:
– Racine: 4.63 percent (up from 4.56 a year ago), 542,237 square feet of absorption
– Waukesha: 3.54 percent (down from 5.57 percent a year ago), 131,151 square feet
– Kenosha: 4.17 percent (down from 8.5 percent), 77,597 square feet
– Walworth: 4.26 percent (down from 5.34 percent), 0 square feet
– Sheboygan: 5.07 percent (up from 4.35 percent), 0 square feet
– Ozaukee: 8.57 percent (down from 10.04 percent), 0 square feet
– Milwaukee: 9.23 percent vacancy (down from 10.09 percent a year ago), negative absorption of 36,637 square feet
