Milwaukee Office Market Report

Central Milwaukee’s office market carries forward progress entering 2025. Corporate relocations, including Enerpac Tool Group, The Marcus Corporation and Allspring Global Investments, have accelerated the flight-to-quality trend, bringing CBD availability closer to suburban rates in 2024. Suburban submarkets, meanwhile, face higher vacancies and more sublease offerings as part of this process. Up 630 basis points since the start of 2019, suburban vacancy of 16 percent entering this year reflects competition from the CBD’s higher-quality offerings. With no major speculative office projects on the horizon, vacancy rates should improve in 2025 as companies consolidate into exisiting spaces. Although hybrid work models and downsizing moderated demand compared with pre-pandemic levels, net absorption returned to positive levels in 2024, allowing Class B and C assets to have modest rent gains above the national average. Limited construction, coupled with ongoing conversions, is expected to keep vacancy in check and motivate property owners to upgrade and differentiate their portfolios.