FOR IMMEDIATE RELEASE
Contact: Tracy Johnson, President & CEO, CARW | 414-698-7474 | tracy@carw.com
Chris Allen, Director of Analytics, REDIComps | 952-456-1669 | chris@redicre.com
CARW / Moody’s Release 2025 Q2 Commercial Numbers for Southeast Wisconsin
MILWAUKEE, July 2025 – The Commercial Association of REALTORS® Wisconsin (CARW) 2025 second quarter numbers show a market and economic overview of the industrial, office and retail report. The market reports are produced in collaboration with CARW members, Moody’s, and REDIComps Research. Click HERE for the report.
The Southeast Wisconsin commercial real estate market continues to evolve, with uneven activity across sectors but strong signs of long-term confidence. Developers are still building, investors are active, and businesses are adjusting how they use space in response to changing needs. Vacancy rates are up in some areas, but that also creates opportunity for creative reuse and repositioning. “We’re seeing a market in transition—but one that’s resilient and full of potential,” said Tracy Johnson, CEO of the Commercial Association of REALTORS® Wisconsin (CARW). “The strength of our workforce, infrastructure, and regional collaboration continues to drive interest and investment.”
COMMENTS:
OFFICE:
The office sector remained under pressure, posting negative net absorption of 135,900 SF, pushing the multi-tenant vacancy rate to 20.1%. Suburban markets and Milwaukee’s CBD both saw persistent softness, though there were bright spots like Pewaukee, which recorded 15,900 SF of positive absorption, led by new medical leases.
“Milwaukee’s office market continues to experience a flight to quality, with Class A buildings in prime submarkets seeing steady activity despite elevated overall vacancy. Tenants remain cautious, favoring financially stable landlords and amenity-rich spaces, while overall leasing volume remains below historical norms.”
— Jim Cavanaugh, Cushman & Wakefield | BOERKE
INDUSTRIAL:
The industrial market remained a strength, with 1.1 million SF of positive net absorption in Q2 and over 883,000 SF year-to-date, maintaining a healthy 6.2% vacancy rate. Leasing activity was strong, especially in Kenosha County, which led the region with over 1 million SF of positive absorption, including a major lease by Westrock.
“The owner-user segment continues to be one of the most competitive areas of our industrial market. Companies looking to grow are having a hard time finding functional space—especially in the 20,000 to 100,000 square foot range. The limited inventory and strong demand are driving competition and pushing more businesses to delay expansion or consider build-to-suit solutions.”
— Travis Tiede, SIOR | NEWMARK
RETAIL:
The retail sector posted modest losses of 21,200 SF in Q2, with a 5.8% vacancy rate for multi and single tenant properties, though some submarkets like West Allis saw gains from new tenants. Development activity continued across all sectors, including retail with more than 540,000 SF across 19 projects.
“Retail spending continues to remain stable throughout the U.S. and in southeastern Wisconsin. Any variance in vacancy is more optics than anything, as a handful of struggling retailers have closed stores—most of which were anticipated long before their announcements. Many of those spaces are already in various stages of being re-tenanted. Kroger’s closure of five Milwaukee-area stores would be the only ‘net new’ mass closure in the area. Some of those locations will attract strong interest, while others may take longer to repurpose. New construction of any scale continues to be very expensive and difficult to pencil out, so vacant space should remain attractive to the market.”
— Cory Sovine, Colliers Wisconsin
“Retail and storefront vacancy in Southeast Wisconsin is less than 6%, while the darling of the asset class continues to be strip centers—where vacancies are scarce. Most opportunities are leased before a sign can be installed in the window, so to speak, given demand from franchises, medical and professional users, and national tenants. Development of multi-tenant properties has generally stalled, while construction of free-standing buildings and build-to-suit projects has momentum.”
— Kevin Schmoldt, NEWMARK
###
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 supports more than 950 commercial real estate professionals in 500 companies throughout Wisconsin and the region. CARW also oversees the statewide data exchange that tracks commercial lease and sale information. Members represent more than 36.5 M sf of commercial real estate available for sale and nearly 63 M sf available for lease.
About Moody’s Commercial Real Estate: Moody’s Commercial Real Estate platform provides trusted data, analytics, and forecasting tools to help investors, lenders, brokers, and developers make smarter real estate decisions. Covering millions of U.S. properties, the platform combines property-level insights with market trends, loan data, and economic forecasts. With tools for underwriting, lead generation, and portfolio management, Moody’s CRE empowers users with the intelligence needed to navigate an increasingly complex real estate landscape.
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. REDI/Catylist provides fully researched market data and Commercial Data Exchange Services to more than 50 markets nationwide. Click HERE for more information.