Brookfield-based real estate development firm 2000 Development Corp. plans to build a 120,000-square-foot, multi-tenant industrial building on an 11-acre site at the northeast corner of Commerce Circle and Watertown Road in the city of Pewaukee.
The firm hopes to break ground on the project this fall or in the spring of 2014, said Brandon Bergman, president of 2000 Development Corp.
The firm is working on a lease deal with a potential tenant that would occupy 45,000 square feet of space, Bergman said. He declined to name the potential tenant, but said it is currently located in southeastern Wisconsin in a facility with 25,000 to 30,000 square feet of space.
“This would be an expansion for them,” Bergman said.
The building is one of several industrial buildings that are planned in the City of Pewaukee. Interstate Partners LLC is working on plans for five industrial buildings in the City of Pewaukee, including a proposed 78,000-square-foot industrial building at N15 W23500 Stone Ridge Dr. in Interstate’s RidgeView Corporate Park development. That building would be occupied by Pro Mach Inc., according to documents submitted to the city. The company has also submitted conceptual plans to the city for four other industrial buildings. No tenants have been announced for those projects. Two of the buildings, one a 113,000-square-foot industrial building and a 20,000-square-foot industrial building, would be located along the south side of Watertown Road in RidgeView Corporate Park. The sites are across the street from the Waukesha Gun Club, located at N22 W23170 Watertown Road. The other two buildings would be located in a business park that Interstate Partners wants to develop on the north side of Bluemound Road between Pewaukee Road and Busse Road. Called Bluemound Corporate Park, it would be developed in two phases with a 100,000-square-foot industrial building in the first phase and a 75,000-square-foot industrial building in the second phase.
The building plans by Interstate Partners and 2000 Development Corp. in Pewaukee are largely a reaction to the strength of the the metro Milwaukee industrial real estate market, which has had 13 consecutive quarters of positive absorption and a vacancy rate of 6.6 percent. The industrial space vacancy rate in Waukesha County is ever lower, at 4.2 percent, according to Xceligent.
“We currently have no vacancy out of (an industrial building portfolio of) 430,000 square feet,” Bergman said. “The longest vacancy we have had in the last 5 years I think lasted a week.”
Some industrial space is available in the market for small tenants, but for tenants seeking 30,000 to 50,000 square feet of space, “brokers say there is nothing out there,” Bergman said.