CARW / Catylist Release 2019 Q1 Commercial Numbers
MILWAUKEE, April 17, 2019– The Commercial Association of REALTORS® Wisconsin (CARW) first quarter numbers show a market and economic overview of the industrial, office and retail real estate industries. Leasing activity is strong across all sectors in Wisconsin with construction velocity high as a result of low supply in some sectors. In 2019, there are 4.6 million square feet of new construction projects throughout the market. The market reports are produced in collaboration with CARW members and REDIComps Research and Catylist.
The office market data shows that there was more than 40,000 square feet of positive absorption in the market with just over 12% vacancy. “While overall absorption has waned, activity remains strong,” said Joe Lak and Ben Anderson from Colliers International. “We’ve seen a slight shift away from the traditional CBD market into other adjoining submarkets. Adaptive re-use projects continue to perform well and likewise we see new construction continue disrupting the market as users seek creative office product for the foreseeable future.”
The industrial overview revealed Waukesha County leading all other markets with 135,000 square feet of positive absorption. “The momentum from 2018 has very much carried over into the start of 2019,” said Zachary Noble, Principal at The Dickman Company. “Developers continue to target land acquisitions for new spec industrial developments, most heavily in the counties of Kenosha, Racine, Milwaukee, and Waukesha.” According to Noble, the number of suitable sites continues to shrink and pushes up demand, particularly in the Racine and Kenosha markets. “In Waukesha County and Milwaukee County, supply is borderline non-existent,” said Noble “with some looking towards infill re-development and retail conversion opportunities to fill the need.”
Chad Vande Zande, SIOR, Principal at The Boerke Company said, “We are forecasting that the general market fundamentals will remain strong for Metro Milwaukee with vacancy rates staying below the national average, absorption staying consistent with the delivery of new speculative buildings and the area will continue to see rental growth.”
Retail leasing in the first quarter of 2019 remained steady. “Leading the pack of new openings are quick service restaurants, fast casual restaurants, discount retail (apparel/dollar stores/grocery), and boutique fitness concepts,” Nathan Powers, Principal at Cushman & Wakefield | The Boerke Company, Inc. said. “We continue to hear buzz surrounding the Third Ward and The Corners of Brookfield, which have been desired destinations for new-to-market concepts in the food & beverage, fashion, and beauty segments,” he said. Several retailers have already shuttered stores in 2019 including Bon Ton, Shopko, and Payless. “As closures happen and vacancies occur, well position real estate locations will present excellent opportunities for other tenants and developments,” Powers continued. “For a prime example of this repositioning, we look to how CBL is reimagining the former Sears at Brookfield Square with an entertainment concept including Marcus Cinema and Whirly Ball.”
In 2017, CARW partnered with REDIComps/Catylist to develop and offer a statewide data platform for the commercial real estate community to share listing and commercial real estate data. Presently, in Wisconsin, there are more than 45,500 properties in the system and nearly 1,000 contributors. Nationally the exchange houses more than 1.2 million properties. The system serves as a back-end supplier of information for many of the brokerage firms and economic development agencies.
“The Catylist platform allows the Wisconsin Commercial Real Estate market to have a complete, reliable, accurate and flexible platform to share and confirm data on buildings, spaces and land,” said Tracy Johnson, CARW CEO. “Wisconsin’s commercial real estate community is evolving in the way technology is leveraged,” she added. “We’re really proud to have enormous buy-in on this tool that will make our individual members and firms even more valuable for their clients.”
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.
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.
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.
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