The metropolitan Milwaukee office real estate market showed signs of slight improvement during the third quarter of 2024, according to the latest market report from the
Commercial Association of Realtors Wisconsin (CARW) and
Moody’s.
The area’s office market absorbed 29,564 square feet of space during the quarter, according to the report, a notable improvement from the second quarter when the region’s office market had negative absorption of more than 700,000 square feet of space.
The area’s office market vacancy rate increased slightly to 18.6%, according to the report. That comes after a larger vacancy rate increase from about 16.9% in the first quarter to about 18.4% in the second quarter.
The downtown office market, with a vacancy rate of 16.9%, remains healthier than the suburban market, with a vacancy rate of 19.8%. The suburbs had positive office space absorption of 51,800 square feet of space during the third quarter, while the downtown area had negative absorption of 22,236 square feet, however, year-to-date the downtown area has had positive absorption of 133,781 square feet of office space while the suburbs have had negative absorption of 767,508 square feet.
There is very little office space construction occurring in the Milwaukee area. Only 20,300 square feet of office space is under construction in the area, according to the report.
Here’s a breakdown by Milwaukee-area submarket of third quarter office space vacancy rates:
- Milwaukee Central: 1.3%
- Milwaukee South: 7.2%
- Waukesha Southwest: 7.2%
- Waukesha Northwest-Lake Country: 7.9%
- Milwaukee North Shore: 13.9%
- Milwaukee Downtown East: 15.2%
- Mequon-Theinsville: 17.6%
- Milwaukee Downtown West: 18.1%
- Third Ward-Walker’s Point: 20.8%
- Milwaukee Northwest: 21.7%
- Pewaukee: 22.9%
- Brookfield: 23%
- Mayfair-Wauwatosa: 26.1%
- Milwaukee West Allis: 26.4%
- Waukesha Southeast-New Berlin: 37.4%
Here’s a breakdown by Milwaukee-area submarket of third quarter office space absorption:
- Milwaukee Northwest: 38,674 square feet
- Mayfair-Wauwatosa: 30,325
- Milwaukee Downtown East: 27,119
- Milwaukee West Allis: 24,122
- Pewaukee: 8,011
- Milwaukee South: 3,588
- Waukesha Southeast-New Berlin: 786
- Milwaukee Central: 0
- Waukesha Northwest-Lake Country: -1,770
- Milwaukee North Shore: -3,057
- Mequon-Theinsville: -7,230
- Waukesha Southwest: -14,070
- Third Ward-Walker’s Point: -14,864
- Brookfield: -27,579
- Milwaukee Downtown West: -34,491
