Southeastern Wisconsin Commercial Real Estate Markets have continued the year positively with relatively steady vacancy rates and positive absorption, according to the commercial real estate market reports for the third quarter of 2016, released today by CARW and Xceligent. The market reports are produced in collaboration of CARW and Xceligent under the direction of an advisory panel of CARW member commercial real estate professionals.
- During 3Q 2016, the Milwaukee office market experienced 150,722 square feet (sf) of positive net absorption, bringing the total year-to-date net absorption to 626,945 sf. The overall vacancy rate for the market decreased 40 basis points to 16.8% as increases in occupancy outpaced newly introduced vacant space.
- The downtown office market experienced just over half of the positive net absorption gained this quarter, with the majority taking place in the Downtown East submarket with 54,061 sf.
- The market posted another quarter of positive net absorption, with 819,932 sf. The year-to-date net absorption was 3,760,049 sf, aided by the completion of several large projects and steady tenant activity.
- The weighted average asking rental rate for the Milwaukee market decreased $0.04 per sf to $4.38 NNN during 3Q 2016, due to the shift in rents on available space and the direct correlation with the class and quality of property.
- The Milwaukee retail market experienced a 30 basis points decrease during 3Q 2016 to 7.0%, down 100 basis point from this same period in 2015. This is attributed to steady market activity and new construction completions, most of which are fully occupied.
- Milwaukee and Waukesha counties continue to see the majority of the market activity during 3Q 2016 with vacancy rates of 6.5% and 5.8%, respectively.