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@redicomps.com
CARW / Moody’s Release 2024 Q3 Commercial Numbers for Southeast Wisconsin
MILWAUKEE, October 2024– The Commercial Association of REALTORS® Wisconsin (CARW) 2024 third quarter numbers show a market and economic overview of the industrial, office and retail sectors. The market reports are produced in collaboration with CARW members, Moody’s. Report is HERE
COMMENTS:
OFFICE:
“The Milwaukee office market slowed down in quarter 3 compared to the first half of the year, particularly downtown, posting negative absorption this quarter after 2 consecutive quarters in the black. The combined suburbs showed signs of stability via positive overall absorption of 55,000 SF.
The majority of YTD negative absorption tracked in this report can be attributed to a handful of known, larger lease expirations. We continue to feel the delta in demand between Class A and Class B/C product of a certain vintage, particularly those lacking amenities, as the trends of flight to quality and functionality continue market-wide. Jenna Maguire | Vice President | Colliers, Wisconsin
INDUSTRIAL:
“The industrial market has a healthy vacancy rate of 5.5%, a key threshold I track since rent tends to grow when vacancy rates are at or below this level. While tenants might see this at first glance and be excited at the potential of rent stabilization, a closer look at submarkets provides more context.
The market may see rents stagnate in big-box warehouse particularly in Racine & Kenosha counties, however; in Waukesha and Washington counties rents are likely to continue growing due to the low vacancy and limited new construction pipeline.” Cody Ziegler | Broker | Cushman & Wakefield | BOERKE Company
RETAIL:
“Retail properties in Wisconsin continue a trend of strong occupancy, with a vacancy rate of 5.8% overall. Given the scarcity of available space, especially for free-standing properties (2.3% vacant), retail rents continue to increase and incentives by landlords are limited. While absorption was negative for the period, it should be viewed as transitional with a high likelihood that these spaces will be leased quickly given the level of tenant interest for well-located storefronts. Closure by tenants such as Big-Lots, create an opportunity for landlords to meaningfully increase rents and reposition shopping centers. New development is primarily driven by outlot demand by the coffee, QSR, and financial institution categories.” Kevin Schmoldt | Managing Director | NEWMARK
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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 900 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:
Moody’s is a global integrated risk assessment firm that empowers organizations to make better decisions. Moody’s recently acquired Catylist, a commercial real estate software company that supports the commercial data exchange systems in more than 50 markets across North America. Moody’s 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.
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. Visit carw.com for more information.