Area’s industrial real estate market posts strong Q3 results

But office market dips, and retail was flat

Mitchell Industrial Park

Last updated on May 15th, 2019 at 04:55 pm

The metro Milwaukee industrial real estate market continues to outperform the area’s office and retail real estate markets.

Mitchell Industrial Park

During the third quarter, the area’s industrial real estate market absorbed 1.68 million square feet of space and its vacancy rate dipped to 3.7 percent, compared to 4.0 percent a year ago, according to the latest market report from Xceligent and the Commercial Association of Realtors Wisconsin (CARW).

The region’s third quarter industrial space absorption was more than double that of the third quarter of 2016, when 723,516 square feet of space was absorbed, but was down from the second quarter of 2017, when about 2 million square feet of industrial space was absorbed in the region.

The Milwaukee area’s office market had negative absorption of 77,961 square feet of space during the third quarter and its vacancy rate rose from 16.5 percent in the second quarter to 16.8 percent.

The decline in the area’s office market during the third quarter was largely due to Johnson Controls’ move to vacate 120,000 square feet of space at the Lydell Corporate Center in Glendale, according to the Xceligent and CARW report.

The area’s retail market had a flat performance during the third quarter with only 32,848 square feet of absorption, and the vacancy rate increased slightly to 7.6 percent.

The area’s retail real estate market was hit by Pick ‘n Save store closures that resulted in a total of 150,000 square feet of vacant space, but the completion of the first phase of the 84South development in Greenfield boosted the retail real estate data.

Read more economic data reports at the BizTracker page.

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Andrew is the editor of BizTimes Milwaukee. He joined BizTimes in 2003, serving as managing editor and real estate reporter for 11 years. A University of Wisconsin-Madison graduate, he is a lifelong resident of the state. He lives in Muskego with his wife, Seng, their son, Zach, and their dog, Hokey. He is an avid sports fan and is a member of the Muskego Athletic Association board of directors.

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