The southeastern Wisconsin industrial real estate market flattened in the fourth quarter as the vacancy rate held steady at 7.6 percent, the same as in the third quarter, and absorption slowed to 197,218 square feet of space, down from 1.28 million in the third quarter, according to the fourth quarter market report from Xceligent and the Commercial Association of Realtors Wisconsin (CARW).
Racine County still has the lowest industrial space vacancy rate. Ozaukee County has the highest vacancy rate. Walworth County had the highest amount of industrial space positive net absorption in the fourth quarter.
Fourth quarter vacancy and absorption by county:
- Racine, 3.6 percent (111,863 square feet)
- Walworth, 4.3 percent (184,817 square feet)
- Waukesha, 5.0 percent (33,963 square feet)
- Washington, 5.3 percent (22,660 square feet)
- Sheboygan, 6.5 percent (0 square feet0
- Milwaukee, 10 percent (-139,687 square feet)
- Ozaukee, 12.2 percent (50,550)
The region’s industrial real estate market posted significant gains in 2011. The vacancy rate fell from 8.5 percent at the end of 2010 to 7.6 percent, and the market absorbed 3 million square feet of space during the year.
