After
softening during the first quarter of the year, the southeastern Wisconsin industrial real estate market strengthened during the second quarter, absorbing nearly 2.2 million square feet of space and seeing its vacancy rate dip slightly to 5.7%, according to the latest market report from the
Commercial Association of Realtors Wisconsin (CARW) and
REDIComps.
The amount of space absorbed by the market during the quarter was by far the most during the 12 months. That comes after the market had negative absorption of 153,869 square feet of space during the first quarter.
Kenosha County led the region with more than 1.8 million square feet of industrial real estate absorbed during the second quarter, primarily from the completion of a new 1.4 million-square-foot building for Uline.
Milwaukee County had the highest amount of negative absorption for industrial space in the region during the second quarter, including 150,000 square feet vacated by Smart Warehousing.
The region’s industrial real estate vacancy rate improved slightly from 5.8% in the first quarter, but remains significantly higher than the rate of 3.6% from a year ago.
There is currently more than 2.6 million square feet of industrial space under construction in southeastern Wisconsin. During the first half of the year, construction of 25 industrial buildings have been completed, with a total of 3.1 million square feet of space.
Here’s a breakdown of second quarter industrial space vacancy rates by county:
- Walworth: 0.7%
- Waukesha: 0.9%
- Sheboygan: 1.2%
- Ozaukee: 1.4%
- Washington: 3.4%
- Milwaukee: 7.6%
- Racine: 8.5%
- Kenosha: 13.1%
Here’s a breakdown of second quarter industrial space absorption by county:
- Kenosha: 1,818,639 square feet
- Washington: 315,015
- Waukesha: 289,715
- Racine: 115,372
- Ozaukee: 53,470
- Walworth: 0
- Sheboygan: 0
- Milwaukee: -406,934
Here’s a breakdown of industrial real estate currently under construction by county:
- Milwaukee: 796,539
- Washington: 610,650
- Kenosha: 593,564
- Waukesha: 432,952
- Racine: 109,636
- Sheboygan: 49,500
- Walworth: 25,000
