Milwaukee Office Market Report

Uneven conditions within Milwaukee County. The primary economic engine and most populous area in the market — Milwaukee County — is split between two submarkets: Downtown and the remaining portion of the county. Entering the second quarter of 2021, the two sections had vacancy rates more than 500 basis points apart, with the CBD at 18.7 percent and remaining Milwaukee County at 13.6 percent. One year later at the same reference point in 2022, that margin had shrunk to 300 basis points as each area's vacancy rate moved about 100 basis points in opposite directions. This potentially represents the reversal of a pandemic-era trend, when demand for urban core office space dried up and less dense suburban floor plans gained favor. New move-ins Downtown in May 2022 by Old National Bank and 3D Molecular Designs indicate that this recalibration could continue in the coming quarters.