Milwaukee Industrial Market Report

Headwinds for older stock amid tapering speculative development. Milwaukee’s industrial market recorded one of the slowest rates of inventory growth in the nation during the year ended in March. Local vacancy still rose substantially, however, largely due to tenant move-outs from facilities built prior to 1980. Nevertheless, the metro still held the fourth-highest occupancy level among major U.S. markets heading into April. This year’s delivery slate will be slightly larger than last year’s, though still only about half the annual average between 2019 and 2023, which was 3.9 million square feet. Over three-quarters of the additions will consist of manufacturing plants with floorplans exceeding 125,000 square feet, most of which are build-to-suit. The recent slowdown in speculative development may help ease rising vacancy, while more stable tenant demand will likely support a return to positive quarterly absorption in the second half of 2025. As such, the metro’s average asking rent is projected to maintain momentum after growing at the third-fastest rate among major markets last year.