CARW / Catylist Release 2018 Q4 Commercial Numbers
MILWAUKEE, January 16, 2019– The Commercial Association of REALTORS® Wisconsin (CARW) fourth quarter numbers show that 2018 ended on a high note and put 2019 in position to be another strong year. All sectors are showing robust lease activity, conversions and new developments.
The fourth quarter showed continued momentum in the Milwaukee office market. An active 2018 included ground up construction, building and conversion announcements, and steady leasing velocity. “Graef’s commitment to The Avenue is a catalytic transaction for West Town,” said Jenna Maguire of Founders 3 Real Estate Services, “the entire area is now primed for office leasing due to new, well capitalized ownership of buildings such as HUB640 and 310W. The announcement of Husch Blackwell kicking off Josh Jeffers’ new building on Broadway, Hardware HQ hitting the market, the imminent delivery of space at The Hammes Building, and Michels Corp. breaking ground in the Harbor District, we have headed into the new year with more product than anticipated at the beginning of 2018.” Maguire continued, “We’ll keep an eye on the impact that the increase in new inventory has on the marketplace, specifically, how older buildings will adapt to compete.”
“As we kick off 2019, it promises to be another strong year for the Wisconsin Retail Market,” said Max Jacobson of Mid-America Real Estate. In 2018, several large format retailers opened new stores, including Fleet Farm, Meijer and the state’s first Ikea. “In 2019, we will continue to see a few larger retailers expand, such as At Home with their recent acquisition of the former Sam’s Club in Madison,” Jacobson continued. “Large spaces vacated by Sears, Toys”R”Us, and potentially Shopko will create new opportunities for landlords and tenants alike. We will also continue to see discount fashion, food, “eatertainment” and fitness concepts continue to expand.” In 2018, the Fiserv Forum opened, and this year we will watch the Entertainment Block come to life with a lineup of restaurants and bars. “2019 is poised to be another year of growth for developers, for large and small format national retailers and for Wisconsin’s local businesses.”
The Southeastern Wisconsin Industrial market continued its momentum through the fourth quarter of 2018. “Vacancy rates have continued to shrink albeit a little slower than previous quarters,” said Jim Larkin of Colliers International. The I-94 corridor from Milwaukee to Kenosha county remained the major areas for new industrial developments due to the abundance of land available. “The announcement of the new Amazon development in Oak Creek and the continued growth and development of Foxconn have been major catalysts along this corridor, Larkin said. “Developers have been acquiring available land sites in hopes of capitalizing on the region’s industrial momentum and 2018 saw more speculative development in Racine and Kenosha counties.” Washington and Waukesha counties also saw some major deliveries and new development announcements in the fourth quarter but quality land sites are much harder to come by in these counties. “As a sign of how good things are in the market, these new developments are getting filled before they are completed in some cases and looking forward there is a little uneasiness as demand is outreaching supply,” Larkin said. “As for 2019,
the momentum should continue – with many new major developments in the pipeline across the market and an increasing demand for space there is no reason why this train should slow down anytime soon.”
About CARW: CARW is the VOICE for commercial real estate brokerage and related professionals in Wisconsin. Founded in 1993, CARW is dedicated to the success of our members by providing public policy advocacy, invaluable educational opportunities, networking experiences and data exchange.
CARW is a trade association with over 850 members, representing more than 400 individual businesses including commercial REALTORS®, accounting firms, appraisers, architects, attorneys, bankers, builders, contractors, developers, environmental specialists, title insurance companies and other industry related businesses. CARW REALTORS® are a member of the REALTOR® Network, the world’s largest professional association with over 1.3 million members.
About REDI: Founded in 1994, REDI is the original fully researched CIE/CMLS exchange. REDI provides tailored commercial real estate products for the commercial real estate industry, including a complete market property universe continuously updated with the latest availabilities and sales transactions.
About Catylist: Catylist is a commercial real estate software company that supports commercial data exchange systems in more than 45 markets across North America. Catylist partners with brokerage firms, local associations, and economic development communities to create a customized, local database that serves as the most trusted source for information in the market.
# # #