As construction of speculative industrial space slows drastically, and Waukesha County contends with a shortage of space, a Milwaukee-area firm is proposing a new spec industrial building in the city of Pewaukee.
Brookfield-based 2000 Development wants to build the 225,000-square-foot facility on a roughly 20-acre site at the northeast corner of Redford Boulevard and Lindsay Road.
The company owns other industrial sites in the area and says there's demand from tenants for more space.
"I have the tenants within my own portfolio that call me monthly trying to find more space in Pewaukee,"
Brandon Bergman, 2000 Development's president, told the City of Pewaukee Plan Commission. "They love Pewaukee, it's a great employee base. These are national tenants that need more space — they're growing, growing, growing."
Waukesha County had an industrial vacancy rate of just 1.2%,
according to the most recent report from the
Commercial Association of Realtors Wisconsin. A healthy vacancy rate is generally around 5%.
Meanwhile, though demand for space from industrial users has remained relatively strong, construction of new speculative industrial space has slowed amid economic headwinds, industrial real estate experts say. The issue is particularly acute in Waukesha County where developable land is running short.
"As the municipality and other municipalities have developed out, the sites that are left are the most challenging ones," Bergman said. "We're running out of sites that we can do developments on in the city of Pewaukee, especially for industrial."
The project's estimated value is around $15 million to $20 million and early grading could begin as early as fall 2024, according city documents.
The proposed development would span around 21 acres, most of which is a flood plain. 2000 Development is looking to remap the floodplain to increase the site's buildable area. It's proposing to utilize city-owned property for part of the needed compensatory flood storage area, according to a city report. The company has received approval from the Federal Emergency Management Agency (FEMA) to relocate the floodplain.
The commission reviewed the project's concept on April 18 but did not take action.
Additionally, 2000 Development is requesting tax incremental financing from the city, but the company didn't specify the amount it's seeking.
