The southeastern Wisconsin industrial real estate market continued to perform well in the third quarter. The market absorbed 1.2 million square feet of industrial space, the 17th consecutive quarter of positive absorption for the market, according to the latest report from Xceligent and the Commercial Association of Realtors Wisconsin.
The region’s industrial space vacancy rate fell to 5.53 percent in the third quarter, down from 6.68 percent a year ago and 5.82 percent in the second quarter. The region’s industrial space vacancy rate has been on a steady decline since peaking at 9.75 percent in 2008 during the Great Recession.
The largest industrial space lease in the region during the third quarter was signed by Quad-Graphics which leased the former American TV warehouse building at W228 N2801 Duplainville Road in Pewaukee.
Third quarter industrial space vacancy rate and absorption by county:
– Milwaukee, 480,284 square feet, 8.24 percent
– Kenosha, 307,891 square feet, 4.03 percent
– Waukesha, 157,929 square feet, 3.8 percent
– Ozaukee, 133,894 square feet, 5.77 percent
– Racine, 72,234 square feet, 3.77 percent
– Washington, 57,228 square feet, 4.52 percent
– Walworth, 24,350 square feet, 3.18 percent
– Sheboygan, 0 square feet, 4.33 percent
Of the 1.2 million square feet of industrial space absorbed in the region during the third quarter, 420,300 square feet was a result of owner-occupied building additions. The largest was a 250,000-square-foot addition built by Rust-Oleum to a facility at 8505 50th St. in Kenosha. Another 1.43 million square feet of building additions and 4.7 million square feet of new construction is scheduled to be completed by the end of the year, according to Xceligent.