The southeastern Wisconsin retail real estate market bounced back during the second quarter, recovering from a rough first quarter, according to the Xceligent and Commercial Association of Realtors Wisconsin (CARW) second quarter report. During the second quarter the market had positive net absorption of 82,607 square feet of space and the vacancy rate dipped to 7.7 percent.
In the first quarter the closing of Kmart stores in Waukesha and Burlington helped drive up the vacancy rate to 7.9 percent and the market had negative net absorption of 148,000 square feet.
“Market fundamentals seem to be getting stronger and a depressed supply of new product is beginning to create a pent up demand by retailers,” said Cory Sovine, a retail real estate broker for Siegel-Gallagher. “Many of the big/mid box vacancies in this market have been or are being absorbed, which will likely lead to some new centers being proposed in the stronger trade areas. However, financing is still proving difficult to come by for local tenants and national retailers are still being rather pragmatic about where and how they spend their dollars.”
