The industrial space vacancy rate in the Milwaukee area rose to 7.5 percent as of the end of June, up compared with the area’s 7.3 percent industrial space vacancy rate at the same time in 2007, according to a new report by Boston-based Colliers International. The company’s local affiliate is Milwaukee-based Colliers Barry. The national industrial space vacancy rate also rose a bit during the last year, climbing to 8.5 percent, compared to 8.2 percent in 2007, according to the report.
"There’s clearly a considerable amount of negative sentiment swirling around the warehouse leasing market at this time," said Ross Moore, executive vice president and director of market and economic research for Colliers International. "A wait-and-see attitude prevails as companies seek a better sense of where the economy is going before making any new lease commitments. This is hampering any significant forward movement for the industrial sector. That said, the export sector remains a bright spot, showing it’s not all doom and gloom for industrial."
The markets with the highest industrial space vacancy rates are Raleigh, N.C. (18.1 percent) and Baltimore (17.8 percent), according to the Colliers report. Chicago has an industrial space vacancy rate of 9.4 percent, up from 8.9 percent in 2007.