As the economic recovery continues, the southeastern Wisconsin commercial real estate market absorbed an impressive amount of space in the industrial, office and retail sectors during the second quarter, according to the latest report from Xceligent and the Commercial Association of Realtors Wisconsin (CARW).
The region’s industrial market absorbed 1.2 million square feet of space during the second quarter, according to the report, bringing the region’s industrial space vacancy rate to 6.6 percent. It was the 13th consecutive quarter of positive absorption for the region’s industrial market and the highest level of absorption since the third quarter of 2012.
“The industrial growth trend for the Milwaukee market has continued to climb,” said Joe Doyle, senior regional director of Xceligent.
The vacancy rate for the region’s industrial market fell from about 7.0 percent in the first quarter to 6.6 percent in the second quarter, according to the report.
The region’s retail market absorbed 289,043 square feet of space during the second quarter and its vacancy rate dipped from about 7.75 percent in the first quarter to 7.6 percent.
“Similar to the last two quarters, the majority of positive absorption (in the retail sector) was a result of new construction,” said Jim Villa, president and CEO of CARW. “Woodman’s continued to expand their market presence by opening a new (239,000-square-foot) store in Waukesha. The majority of the remaining absorption came from neighborhood centers, with tenants such as Big Lots and Bon-Ton.”
The region’s office market absorbed 85,375 quare feet of space in the second quarter, including positive absorption of 53,324 square feet of space in the downtown Milwaukee central business district, according the Xceligent and CARW report.
The most significant deal for the quarter was a 26,819-square-foot lease signed by Infosys at the Schlitz Park RiverCenter building, the report said. Ned Purtell and Jenna Maguire of RFP Commercial brokered the deal for Schlitz Park.
The vacancy rate for the region’s office market fell from 20.6 percent in the first quarter to 20.3 percent in the second quarter.