Area’s industrial space vacancy up a tad

The Milwaukee area industrial space vacancy rate increased slightly during the third quarter, according to the third quarter industrial real estate market report by Boston-based Colliers International, whose local affiliate is Milwaukee-based Colliers Barry.

The Milwaukee area’s industrial space vacancy rate rose from 7.3 percent at the end of the second quarter to 7.4 percent at the end of the third quarter, according to the Colliers report.

Milwaukee’s industrial space vacancy rate was the 31st-highest out of 55 markets in the Colliers report. The Boston area has the highest industrial space vacancy rate with 20.1 percent. For large cities, Los Angeles had the lowest at 2.9 percent. The Chicago area has a 8.7 percent industrial space vacancy rate, according to the report.

According to Colliers International, the sale price for industrial space in the Milwaukee area is about $55 per square foot. The Milwaukee area industrial space cap rate (calculated by dividing net operating income by purchase price) is 8.35, according to Colliers.

The Colliers report predicts that the vacancy rate of industrial space and the absorption of industrial space in the Milwaukee area will remain steady during the next quarter. The report predicts that rents will rise during the next quarter. Currently, rents in the Milwaukee area are $4.35 per square foot for warehouse/distribution space, $3.95 for bulk space, $6.00 for flex/service space and $5.75 for tech/R&D space, according to the Colliers report.

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