Scroll Down

Market Report

Milwaukee Industrial

Second Half 2019

Manufacturing Industry Flourishes From Local Demand; Competitive Bidding Market Entices Owners to Sell

 

Access to growing Wisconsin cities creates robust demand for facilities near interstates. Strong in-state manufacturing demand continues to pilot the Milwaukee industrial market. Although the metro’s population growth remains subdued, Wisconsin’s next two largest cities, Madison and Green Bay, are rapidly growing. Over the past five years Madison’s population grew by 4.8 percent and Green Bay’s by 2.9 percent. Milwaukee industrial is benefiting from its access to both cities via Interstate-94 and I-41. Tenants have particularly been drawn to areas west and northwest of the city of Milwaukee , where access to interstates is less congested than within the metro core. In Washington County along I-41, a 706,000-square-foot build-to-suit for Briggs & Stratton was completed in early 2019. Additionally, two speculative projects within the county were finalized this year, totaling 385,000 square feet. Metrowide, construction activity has intensified over the past five years due to consistent leasing activity. Over this time period, market vacancy dropped 50 basis points to 4.8 percent this past third quarter. The lowest vacancy rate within the metro is in Waukesha County, where vacancy dropped 100 basis in the past five years to 1.8 percent, with nearly 3.3 million square feet being absorbed over that timespan. Diminishing availability combined with strong tenant demand allowed this county’s average asking rent to rise 6.5 percent since 2014 to $5.40 per square foot this third quarter, well above the metro average of $4.68 per square foot.

Related Research

Back to top