The southeastern Wisconsin industrial real estate market is in better shape than it has been in years, according to data from the latest Xceligent and Commercial Association of Realtors Wisconsin (CARW) market report.
The region had positive net absorption of 1.7 million square feet of industrial space during the third quarter. That is the region’s best quarter for industrial space absorption since the first quarter of 2011. It is also the third highest level of industrial space absorption for the region since the third quarter of 2003.
The region’s industrial space vacancy rate dipped to 6.7 percent in the third quarter, down from 7.26 percent in the second quarter.
The last time the region’s industrial space vacancy rate was this low was the fourth quarter of 2006, according to Xceligent data.
The region’s industrial space vacancy rate has fallen steadily since peaking at 9.6 percent in the fourth quarter of 2008, during the Great Recession.
The region has had 10 consecutive quarters of positive net absorption of industrial space, according to Xceligent.
“With all signs pointing to the continuation of that trend, it is an extremely strong indication that the recovery is taking root here,” said Jim Villa, president of CARW.
Third quarter industrial space vacancy and net absorption by county:
Racine: 2.9 percent, 312,492 square feet
Walworth: 4.0 percent, 20,053 square feet
Waukesha: 4.5 percent, 406,188 square feet
Washington: 4.5 percent, 215,808 square feet
Sheboygan: 4.5 percent, 0 square feet
Milwaukee: 9.3 percent, 288,463 square feet
Kenosha: 9.5 percent, 303,278 square feet
