The southeastern Wisconsin industrial real estate market remains on a roll, gaining more strength in the first quarter of the year according to the Xceligent /CARW and CBRE first quarter market reports.
The region’s industrial real estate market had positive net absorption of 933,358 square feet of space in the first quarter, the seventh quarter in a row of positive absorption, according to Xceligent.
The region’s industrial space vacancy rate is now at 7.29 percent, down from 7.58 percent in the fourth quarter of 2011 and down from 9.2 percent when the vacancy rate spiked in the third quarter of 2010.
“The local Milwaukee industrial market has continued to be a major beneficiary of the broader economic gains made globally,” the CBRE report said. “The primary driver of consistently strong asset values, vacancy rates and availability rates is Milwaukee’s unique position as a tremendous manufacturing hub for unique durable goods as well as easy access for warehouse and distribution facilities.”
The biggest industrial space leases in the region during the first quarter were:
- 122,730 square feet, leased by North American Corp. at 1800 S. Sylvania Ave., Racine.
- 111,903 square feet, leased by Joy Global at 6600 Washington St., West Allis.
- 100,520 square feet, leased by Reynold’s Machine at 17005 W. Ryerson Road, Waukesha.
- 73,786 square feet, leased by WPC Technologies at 7350 S. 6th St., Milwaukee.
“The market has moved from tenants capitalizing on below market rents to signing larger leases out of necessity due to increased demand on business,” the CBRE report said.
The biggest industrial space sale during the quarter was American Orthodontics Corps. Purchased of the 249,514-square-foot former Thomas Industries facility in Sheboygan for $5.625 million.
First quarter industrial space vacancy and absorption rates by county (according to Xceligent):
- Milwaukee, 9.9 percent, 124,879 square feet
- Waukesha, 5.4 percent, 92,716 square feet
- Sheboygan, 4.9 percent, 266,314 square feet
- Ozaukee, 9.6 percent, 215,123 square feet
- Racine, 2.9 percent, 138,014 square feet
- Washington, 5.2 percent, 76,633 square feet
- Kenosha, 10.6 percent, 41,679 square feet
- Walworth, 4.5 percent, -22,000 square feet
