Milwaukee Office Market Report

Downtown turning the corner while medical office trends support Racine. Entering 2024, traditional office vacancy in the core held relatively stable, following downward momentum over the prior two years. While Class B/C demand has begun to soften, absorption within the Class A segment improved here in 2023, a trend that should carry forward. This dynamic is bolstered by the Veolia group’s 32,000-square-foot move-in off Wisconsin Avenue and the Milwaukee River. Leasing by financial services firms in Waukesha County may aid a similar trend here. Annex Wealth Management is transitioning to a Class A headquarters in Brookfield, increasing its footprint by a net of 30,000 square feet. Conditions in Racine are also of note. Entering 2024, the local vacancy rate lowered by over 200 basis points, holding below 10 percent for the second consecutive year. Concurrent with a growing local populace, medical-related businesses are taking up a considerable amount of space. This contributes to a marketwide medical office vacancy rate that was the lowest mark among major Midwest metros at 6.5 percent as of late 2023.