CARW / Catylist Release 2020 Q2 Commercial Numbers
MILWAUKEE, July 24, 2020– The Commercial Association of REALTORS® Wisconsin (CARW) second quarter numbers show a market and economic overview of the industrial and office industries and notable transaction report in retail. The market reports are produced in collaboration with CARW members and REDIComps Research and Catylist. The high level numbers are HERE.
“We’re starting to see the effects of COVID-19 shutdowns in the statewide data,” said Tracy Johnson, President and CEO for CARW, “but the true impacts will become even more visible as workers return to the workplace and real estate considerations are evaluated. “Much of the inventory from new construction that was on the table for 2020 will be absorbed in Q3 and Q4.”
“The second quarter office data reveals that absorption was significantly impacted, but vacancy rates, year over year, were not as severely impacted by the pause for COVID-19,” Jim Cavanaugh, Principal at Cushman & Wakefield | BOERKE said. “The office market went into the second quarter with a enough momentum to finish with overall positive statistics. Most deals long in the works were completed as planned with downtown remaining the leader in second quarter absorption.”
“Many tenants shifted their strategies from long-term expansions to short-term renewals while they wait to see what lasting impact employment and workplace trends have on their respective industries,” said Ben Anderson, Colliers International. “Conversely, there has been an uptick in owner occupied activity with firms looking to take advantage of potential pricing discounts on purchase transactions.”
Industrial vacancy remains low around 4.2%. Much of the activity in Q2 was driven by e-commerce giant, Amazon, resulting in 1,186,000 sq ft absorption. “The industrial segment remained strong throughout Q2 with many large new deliveries and ground breakings on new facilities,” said Adam Williquette, President for American Companies. “Vacancy remains low throughout southeastern Wisconsin with demand still high and little existing product to place users. I expect more new development and activity to remain strong going into Q3.”
Second quarter retail sale and lease transactions suggest that there will be increased activity through 2020 as retailers make decisions to evolve with changing consumer needs and demands. “Retail is still fighting the good fight and retailers are doing everything they can to survive however with the highly uncertain consumer environment and large degree of disruption caused by the pandemic and social unrest we do not currently have a high level of certainty what the future will hold,” said Cory Sovine, Colliers International Wisconsin. “Many mom and pop retailers are struggling to survive and are finding that opening their doors for take out and limited service options are not keeping them solvent. Meanwhile, many national retailers that were already on their way out have been completely exposed with this disruption acting as an accelerant and many other national brands are using the disruption as cover to cut loose underperforming stores that likely would have eventually been closed anyhow.”
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 875 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.
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. Visit www.redicatylist.com/carw for more information.
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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