Milwaukee office market has a pulse

    The slumbering Milwaukee area office market may finally be showing some signs of life. Office space vacancy rates declined in the Milwaukee area during the second quarter of this year, according to a report by Boston-based Colliers International. The company’s local office is Milwaukee-based Colliers Barry.

    The report offers good news for Milwaukee’s soft downtown office market. The downtown office space vacancy rate declined from 15.3 percent at the end of the first quarter to 14.1 percent by the end of the second quarter, according to Colliers International. The downtown class A office space vacancy rate fell from 12.1 percent to 9.5 percent.

    “I would say we finally appear to be having some momentum where I would argue we are having some real absorption,” said Bill Bonifas, executive vice president for CB Richard Ellis. “It’s headed in the right direction.”

    The office space vacancy rate also fell in suburban Milwaukee during the second quarter, from 11.2 percent to 10.9 percent, and is well below the national average of 13.0 percent. Milwaukee’s suburban class A office space vacancy rate fell from 14.1 percent to 12.8 percent, which is still higher than the national average of 11.9 percent, according to Colliers International.

    Several recent office space leases have helped reduce the vacancy rate in downtown Milwaukee. The Hall, Render, Killian, Heath & Lyman law firm recently doubled its office space by moving its Milwaukee office from 411 E. Wisconsin Ave. to a 20,000-square-foot space at the Milwaukee Center, 111 E. Kilbourn Ave. In addition, ELM Consulting leased 7,500 square feet of space in the Milwaukee Center, said Lyle Landowski, a broker for Inland Companies, which represents the building. The Milwaukee Center’s occupancy rate has risen from 72 percent to about 82 percent during the last year, he said.

    Stark Investments and Reinhardt Boerner Van Deuren S.C. recently added more space in the 1000 N. Water St. building, Bonifas said. The City of Milwaukee Retirement System recently left City Hall and leased 16,000 square feet of space at 789 N. Water St., and Fiduciary Real Estate Development Inc. leased 14,000 square feet of space in the building.

    Associated Bank recently leased 23,000 square feet of space in Two Plaza East at 330 E. Kilbourn Ave.

    “A number of firms are coming to the end of their leases and they are looking for solutions, needing more space,” said James T. Barry III, president and CEO of Colliers Barry. “The fact that there has not been a lot of new supply put on the market (has helped lower the office space vacancy rate).”

    Downtown Milwaukee’s 14.1 percent office space vacancy rate is still considerably higher than the 10.9 percent national average, but Milwaukee’s 9.5 percent downtown class A office space vacancy rate is lower than the 9.8 percent national average, according to Colliers International.

    Despite the lower vacancy rate, any new downtown office building development will need to attract an anchor tenant, Bonifas and Barry said. The only major anchor tenant rumored to be considering space downtown is Town of Brookfield-based RedPrairie Corp., Bonifas said. However, Barry said others are in the market.

    “I think those (potential anchor) tenants are out there,” Barry said. “There is some active pursuit of those projects.”

    Rental rates for existing buildings are lower than what a new building could afford to offer.

    “You’re not going to spec a building,” Bonifas said. “New construction is such a premium price compared to existing because you need $20 net to build something new.”

    West Allis

    Brian Nahey plans to develop a 134,000-square-foot industrial building on an 8.6-acre site he owns at 2160 S. 54th St. The site is part of the former Wehr Steel property, which was vacant for over a decade until last year when Nahey developed a 60,000-square-foot building for Columbia Pipe.

    Gyros Are Us LLC plans open a restaurant in a 1,225-square-foot space in a strip mall at 10722 W. Oklahoma Ave.


    Grafton

    MPI Coin plans to build a 24,271-square-foot office and industrial building on a vacant, 4.5-acre lot on Badger Circle in the Grafton Business Park. The plans include space for a future 12,653-square-foot expansion. MPI is currently located at 1235 Dakota Drive, Suite N, where it leases 9,600 square feet of space. That lease expires next year. The company, which has 42 employees, packages coins made of precious metals for banks and other institutions that use them for promotions.

    Wauwatosa

    Brendan Moore plans to open a Spanish tapas restaurant in a 3,000-square-foot, two-story space at 7610 Harwood Ave., in the downtown village area. The restaurant, called Rioja, will have seating for about 80 to 90 people. The building is owned by Kent Ehley.

    Kenosha

    The Menominee Indian Tribe recently opened an office at Dairyland Greyhound Park, which will be the local office for its proposed Kenosha entertainment center and casino, which would be built at the dog track site.


    Sheboygan

    Provident Technologies plans to open a sales office in a small retail space at 536 South Pier Drive, in the city’s South Pier District.

    Brookfield

    Natick, Mass.-based The Snip-its Corp., a children’s haircutting franchise, is making its entry into the Milwaukee area. Snip-its will open a location in a 1,680-square-foot space in Elmbrook Plaza at North 124th Street and North Avenue in Brookfield. Snip-its tries to make haircuts fun for kids with a colorful interior with TVs and video games to occupy them during their haircuts. Snip-its also offers group parties and dolls for children to play hairdresser. The company has 56 locations in the U.S. Its only location in Wisconsin is in Wausau.

     

    Commercial real estate Transactions

    Leases

    Apex Commercial

    Farrell Prosthetics leased 2,916 square feet of office space at 1011 N. Mayfair Road, Wauwatosa, from 1011 N. Mayfair Road Limited Partnership.

    CB Richard Ellis

    Seton Children’s School Inc. leased 10,333 square feet of office space at 8647 N. Port Washington Road, Fox Point, from North Shore Centers Partners.

    Tuesday Morning Inc. leased 14,487 square feet of retail space at 4930 S. 74th St., Greenfield, from Greenfield LP.

    Digicopy Inc. leased 1,727 square feet of retail space at 222 E. Erie St., Milwaukee, from Fulton Property Master Tenant LLC.

    Lake Geneva Egg Harbor LLC leased 4,306 square feet of retail space at 827-43 Main St., Lake Geneva, from Newport West Shops.

    Theis Trust leased 1,200 square feet of retail space at 3624 S. Moorland Road, New Berlin, from New Berlin Associates LLC.

    Milwaukee Nephrologists S.C. d.b.a. The Kidney Institute leased 6,380 square feet of space at 2211 N. Humboldt Ave., Milwaukee, from Humboldt Ridge LLC.

    Noodles & Company leased 2,619 square feet of retail space at 1351 N. Port Washington Road, Grafton, from Rick Schmit Rentals Inc.

    Jade AN Inc. leased 900 square feet of retail space at 3775 S. 108th St., Greenfield, from Javic Realty Investment LLP.

    MDS Fitness-Port Washington LLC d.b.a. Anytime Fitness leased 5,280 square feet of retail space at Hidden Hills Commercial Center in Port Washington from Bielinski Commercial LLC.

    Northshore Power Systems LLC leased 4,600 square feet of office space at 4425 N. Port Washington Road, Milwaukee, from Eastlake Towers Corporate Center LLC.

    Getz Majdoch Inc. d.b.a. Halloween Express leased 15,000 square feet of retail space at 1701 S. Main St., West Bend, from South Main Center Inc.

    Steven J. Coffee leased 5,343 square feet of office space at 309 N. Water St., Milwaukee, from Water Street Lofts LLC.

    Dots LLC leased 5,000 square feet of retail space

    at 7600 W. Capitol Dr., Milwaukee, from Square V Group LLC.

    KID-DOS LLC leased 1,450 square feet of retail space at 1230 George Towne Dr., Pewaukee, from Wauwatosa Savings Bank.

    Trinity Staffing Group LLC leased 1,100 square feet of retail space at 6804 Green Bay Road, Kenosha, from Southport Plaza LP.

    CMK Investments Inc. leased 1,200 square feet of retail space at 10380 W. Silver Spring Dr., Milwaukee, from 10380 Silver Spring (Milwaukee) LLC.

    Sentinel Technologies leased 5,215 square feet of office space at 3720 N. 124th St., Wauwatosa, from KL 124th Partners LLC.

    Washington Mutual Bank FSB leased 3,279 square feet of office space at 10850 W. Park Place, Milwaukee, from Two Park Place LLC.

    Arandell Corp. leased 40,000 square feet of industrial space at N90 W14700 Commerce Dr., Menomonee Falls, from SBM Wisconsin LLC.

    Iron Block Holdings LLC leased 3,825 square feet of office space at 825 N. Jefferson St., Milwaukee, from Northridge Company.

    The Wireless Network leased 1,689 square feet of retail space at 1683 N. Van Buren Ave., Milwaukee, from RR 101 LLC & EK 101 LLC.

    Wisconsin Vision Inc. leased 2,389 square feet of retail space at 6035 W. Durand Ave., Racine, from 6035 Durand LLC.

    JW Speaker Corp. leased 8,800 square feet of industrial space at W185 N11513 Whitney Way, Germantown, from Hennes Services Inc.

    EZMONEY Wisconsin Inc. leased 1,276 square feet of retail space at 2345 W. Ryan Road, Oak Creek, from West Ryan Road LLC.

    NorthMarq Capitol Inc. leased 1,207 square feet of office space at 325 N. Corporate Dr., Brookfield, from CORE Realty Holdings Management Inc.

    Dickman Company

    Continuum Foot Spas LLC leased 23,051 square feet of industrial space at 2236 S. 162nd St., New Berlin, from VMJ #1 LLP.

    Gerald Nell

    Balistreri, Jezo & Co. LLP leased 1,285 square feet of office space at 2505 N. 124th St., Brookfield, from G&N Investment Company.

    Avalon Advertising Group Inc. leased 1,110 square feet of office space at 2511 N. 124th St. Suite 200, from G&N Investment Company.

    J & A Pohl Concrete Construction leased 589 square feet of office space at 2505 N. Mayfair Road, Suite 205, Wauwatosa, from Sunset Investment Co.

    Fuji Device Technology America Inc. leased 510 square feet of office space at 2525 N. 124th St., Suite 204, from G&N Investment Co.

    BCA Industries leased 3,200 square feet of industrial space at W140 N5898 Lilly Road, Menomonee Falls, from Bronell Investment Company.

    Inland Companies

    Cousin’s Subs leased 2,000 square feet of space in Plaza Del Sol at 1820 S. 27th Ave., Kenosha.

    AEGIS Therapies Inc. leased 5,280 square feet of space at 440 Wells St., Milwaukee.

    Snip-its leased 1,680 square feet of space in Elmbrook Plaza at North 124th Street and North Avenue in Brookfield.

    Snap Fitness leased 3,160 square feet of retail space in Glenwood Crossing at 30th Avenue and 18th Street in Kenosha.

    Snap Fitness leased 3,550 square feet of space in Decorah Shopping Center at 821-B S. Main St., West Bend.

    Snap Fitness leased 3,550 square feet of space in the Hales Corners Shopping Center at 5700 S. 108th St., Hales Corners.

    Spirit Halloween Superstores leased 7,690 square feet of retail space at the Hales Corners Shopping Center, 5720 S. 108th St., Hales Corners.

    Great Lakes Solutions leased 1,350 square feet of space in Lexington Square at 11649 N. Port Washington Road, Mequon.

    Security First Mortgage leased 1,170 square feet of space in the Tri City Bank building at 6767 W. Greenfield Ave., West Allis.

    Allied Electronics leased 2,082 square feet of office space in the Executive Center V, 300 N. Executive Dr., Brookfield.

    Mid-America Real Estate

    Bruegger’s Bagels leased 2,193 square feet of space in Audubon Court at the southeast corner of Brown Deer and Port Washington Roads in Fox Point from North Shore Centers Partners.

    FedEx Kinko’s leased 1,998 square feet of space in the Shoppes at Nagawaukee, at the southeast corner of Highway 83 and Golf Road in Delafield, from TOLD Development Company.

    Wireless Toyz leased 1,563 square feet of space from Spectrum Development Group in an outlot near the Home Depot store at North 76th Street and Good Hope Road in Milwaukee from Spectrum Development Group.

    Best Buy leased 30,000 square feet of space at I-94 and Highway 50 in Kenosha from GM Investors LLC.

    Snip-Its Haircuts for Kids leased 1,680 square feet of space in Elmbrook Plaza at the northwest corner of North 124th Street and North Avenue in Brookfield, from Alexander & Bishop.

    The United States of America Armed Forces Career Center leased 4,249 square feet of space in V. Richards Plaza, 17115 G W. Bluemound Road, Brookfield, from Inland Commercial Property Management Co.

    MLG Commercial

    New Millennium Construction Inc. leased 4,650 square feet of space in the Clybourn Business

    Center, 2120 W. Clybourn St., Milwaukee, from Blankstein Enterprises.

    Makita USA Inc. leased 3,944 square feet of space in the Westbrook Business Center, 2325 Parklawn Dr., Waukesha, from Westbrook Enterprises LLC.

    Blueprints Inc. leased 16,326 square feet of industrial space at 11331 W. Rogers St., West Allis, from Zion Property LLC.

    Subway Real Estate Corp. leased 1,600 square feet of retail space at 2223 S. 108th St., West Allis, from Reilly Joseph Co.

    Ogden & Company

    Mattress Gallery Inc. leased 4,800 square feet of space at 4960 S. 27th St., Milwaukee.

    Siegel-Gallagher

    Fringe Salon LLC leased 1,550 square feet of office space at 5630 N. Lake Dr., Milwaukee, from Kivley Investments LLC.

    Sales

    Apex Commercial

    Dieringer purchased a 25,000-square-foot office building at 180-200 Bishops Way, Brookfield, from Burr-Milwaukee Properties for $1.6 million.

    Boerke Company

    Alpha Source Investments LLC purchased 41,545 square feet of industrial space at 6619 W. Calumet Road, Milwaukee, from JT Investments LLC.

    David Wordan purchased a 2,161-square-foot office condo at 675 N. Barker Road, Brookfield, from Brookfield Watertown Office Ventures LLC.

    CB Richard Ellis

    Mandel/Fifth Ward Holdings 1 LLC purchased a 145,000-square-foot building on 2.6 acres at 322, 343, 344 E. Florida St., Milwaukee, from JRB IV LLC.

    Alpha Source Investments LLC purchased a 41,545-square-foot building on 4.1 acres at 6619 W. Calumet Road, Milwaukee, from Visual Impressions.

    Dr. Mohammad Shafi purchased 2.18 acres at

    8084 N. 107th St., Milwaukee, from Solid Rock Deliverance Church.

    Ilias LLC purchased a 9,100-square-foot building on 1.54 acres at 426 Sunset Dr., Waukesha, from PDQ Food Stores Inc.

    Colliers Barry

    Bell Ambulance purchased the 3,200-square-foot industrial building at 6223 W. Forest Home Ave., Milwaukee, from Swan Sales Corp.

    Inland Companies

    Sure One LLC purchased 1.4 acres of land at 3670 Highway 100, Greenfield.

    West Development LLC purchased 3,600 square feet of office space at 6125 W. National Ave., West Allis.

    Judson & Associates

    Ealon LLC purchased the 69,485-square-foot building on seven acres of land at 1050 Walnut Ridge Dr., Hartland, from License Products Inc. for $4.2 million.

    Ogden & Company

    Dawn Boland and Cecillia Boland purchased the former Cream City Brewery stables at 1523-31 N. 13th St., Milwaukee, from David E. Phelps.

    Siegel-Gallagher

    Action Property Management purchased the 270-unit Brookside Apartments at 1102 Brookside Drive and 501 11th Avenue in Grafton from Robert A. Schroeder of Cedarburg.

     

    New construction

    Berghammer Construction Corp., Butler, was selected as the general contractor to build the two-story, 20,000-square-foot Howell Avenue Professional Building along South Howell Avenue in Oak Creek.

     

    Andrew Weiland is the managing editor of Small Business Times. Send news about commercial real estate to Andrew.weiland@biztimes.com or by calling him at (414) 277-8181 ext. 120. News can also be sent to Andrew Weiland, Small Business Times, 1123 N. Water St., Milwaukee, WI 53202.

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