Thank you to everyone who joined CARW and CCIM Wisconsin for our First Annual Madison Market Update at the Park Hotel in Madison. Nearly 150 commercial real estate professionals attended this inaugural event to hear local market experts share insights on where the market stands today and what to watch in the months ahead.
A consistent theme throughout the program was that Madison continues to outperform many peer markets, driven by strong population growth, a diverse economy, and increasing interest from institutional and out-of-state investors.
Big Picture
- Madison/Dane County continues to attract investors from across the country, including Hawaii, Colorado, Florida, and California.
- Strong fundamentals—including population growth, income levels, and limited supply in several sectors—continue to support the market.
- Higher interest rates, construction costs, and capital market pressures are influencing development decisions and encouraging the repositioning of older properties.
Multifamily
Gretchen Richards, CCIM, CBRE
- Dane County has been Wisconsin’s fastest-growing county for more than five years.
- Approximately 84,000 apartment units, with nearly 41% built in the past decade.
- Average rents remain around $1,775 with continued moderate growth.
- An estimated housing shortage of roughly 13,000 units continues to support long-term demand.
Industrial
Ben Filkouski, CCIM, Madison Commercial Real Estate
- Vacancy remains exceptionally tight at approximately 3.3%.
- Asking rents have increased roughly 40% over the past five to six years.
- Strong demand continues from manufacturers, logistics companies, and small-bay users under 50,000 square feet.
- Growth remains concentrated along the interstate corridor in communities such as DeForest, Windsor, Sun Prairie, East Madison, and Cottage Grove.
Office
Craig Stanley, Broadway Advisors
- The office market remains challenged but is showing signs of stabilization.
- Large occupiers continue to reduce their footprints, creating both direct and shadow vacancy.
- Office-to-multifamily and life science conversions are helping rebalance the market.
- Leasing activity is strongest among smaller tenants seeking high-quality space.
Retail
Aziah Backus, Colliers
- Retail vacancy remains healthy and below or near national averages.
- Grocery, drive-thru, restaurant, and necessity-based retail continue to lead the market.
- Limited new construction is creating opportunities through redevelopment and repositioning of existing properties.
- Local policy initiatives, including the Transit-Oriented Development (TOD) Overlay, are influencing redevelopment opportunities in several corridors.
Bottom Line
Madison continues to distinguish itself as one of the Midwest’s strongest commercial real estate markets. With the Madison MSA approaching 800,000 residents and long-term growth projections remaining strong, the panelists expect continued investment from both in-state and out-of-state capital, creating opportunities across development, brokerage, lending, construction, and professional services.
Thank you to Jesse Schluter of Colliers Wisconsin for serving as emcee and to our outstanding presenters for sharing their expertise. We look forward to making the Madison Market Update an annual tradition.