FOR IMMEDIATE RELEASE
CARW / Xceligent Release Q3 Commercial Numbers
New Construction impacts Southeastern Wisconsin CRE
(Milwaukee, WI) – The CARW/Xceligent third quarter numbers show the impact of new construction on absorption and vacancy rates across all sectors in southeastern Wisconsin.
The office sector showed slight positive absorption and lower vacancy rates with asking rates up $.88 over last year. “We’re beginning to see space that has been vacant for a number of years, get leased, showing tightening in the market,” said John Mazza, Vice President with CBRE Milwaukee. “The downtown Central Business District (CBD) continues to be hot due to existing CBD Tenants expanding, and tenants coming from outside the CBD to be part of the downtown experience.”
The industrial sector experienced positive absorption despite an increase in the vacancy rate as a result of more than 1.2 million square feet of new construction. More than 600,000 of the market’s total new construction took place in Racine and Uhline contributed significantly to the market with 520,000 square feet in its new distribution center. “We anticipate the industrial trends for southeast Wisconsin to remain strong in the 4th Quarter; both on the user-buyer and investment side,” said Brian Parrish, President of Paradigm Real Estate. “Leasing has slowed, however, as banks compete to lend money to industrial users for building acquisitions or expansions.”
The retail market continues its strong performance in 2015 with a strong third quarter. “Even with the delivery of 550,000 square feet of new space to the market, vacancy dropped to just over 8%,” said Brian Vanevenhoven, principal with NAI MLG Commercial. Nordstrom Milwaukee and two Meijer locations were recently added to the tracked set and contribute to the growing square footage of retail in the Milwaukee Market.
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 is a trade association representing more than 600 members from 200 Wisconsin businesses including REALTORS®, accountants, appraisers, architects, attorneys, bankers, builders, contractors, developers, environmental specialists, title insurance companies and other industry related businesses. CARW REALTOR® members are part of the REALTOR® network, the world’s largest professional association with over 1.1 million members worldwide and over 12,000 just in the State of Wisconsin.