The metropolitan Milwaukee area office market showed improvement in the first quarter of 2015, according to the latest report from Colliers International|Wisconsin.
The metro area’s office market absorbed 28,000 square feet of space during the quarter and the vacancy rate dipped slightly to 18.8 percent, according to Colliers.
Colliers projects that the metro area will absorb 200,000 square feet of office space this year.
“Office demand remains strong, with a plethora of new and expanding users in the market,” the report states. “Colliers is predicting a strong 2015.”
Office tenants are showing an increased interest in downtown Milwaukee, the report says.
“With a streetcar approved and office, multi-family and hotel development all underway, downtown development is abuzz now more than ever,” the report says.
However, the central business district had negative absorption of 42,000 square feet of office space in the first quarter. JP Morgan Chase downsized by more than 67,000 square feet of space in the Chase Tower at 111 E. Wisconsin Ave.
The northwest part of the metro area could see increased activity as Kohl’s vacates office space that it has leased to move operations to buildings it has acquired near its Menomonee Falls headquarters and Wells Fargo eliminates about 1,000 employees.
“With vacancy comes opportunity and there has been strong interest to backfill these spaces from several large tenants in the market,” the Colliers report states.
The metro area’s western submarket absorbed 56,000 square feet of space during the first quarter. Symmetry LLC leased 26,000 square feet of space at 400 S. Executive Dr.,
Brookfield, consolidating three former locations on the East Side of Milwaukee.
