FOR IMMEDIATE RELEASE Contact: Tracy Johnson, President & CEO, CARW | 414-698-7474 | [email protected]
CARW / Xceligent Release Q1 Commercial Numbers
2016 Starts off Strong for Southeastern CRE Markets
(Milwaukee, WI) – The CARW/Xceligent first quarter numbers show that 2016 is off to a strong start. The delivery of several large projects this quarter boosts absorption numbers with vacancy rates remaining steady.
The Southeastern Wisconsin Office Market vacancy rate is slowly decreasing, falling 0.1% from the end of 2015 to 17.8%. Asking rates are increasing and new office construction is fueling the supply of Class A Office space. Class B has a great deal of inventory and will likely spur new buyers to revitalize the space. “The strengthening office market fundamentals in the Milwaukee region continue to support the increased investor appetite for office properties,” said Matson Holbrook, MBH Investment Real Estate, “especially from out-of-state buyers.” In 2015, a number of class B properties were purchased by out-of-state buyers including Riverfront Plaza at 1110 N. Old World Third Street.
The Industrial Market continues to show strength although vacancy rates climbed 0.1%. Uline’s warehouse-distribution center in Kenosha brought 1.2 million square feet to the market. “Economic factors fuel the industrial market,” said Paul McBride with RFP Commercial, “recent job numbers in Wisconsin are topping 3 million for the first time and manufacturing PMI indicated strong growth in Southeastern Wisconsin. Both are strong indicators of what should be expected for 2016, with solid vacancy rates and continued positive absorption,” he added.
The first quarter of 2016 for the Retail Market has shown a trend towards repurposing of well-positioned retail assets made available through a number of national retailers shedding space. The two largest deals include the Mayfair Collection Phase II and Bluemound Road Power Center that is home to Dunham’s and Hobby Lobby. Cory Sovine, Colliers International, suggested, “the better positioned assets have been able to be repurposed by other retailers and a handful of new-to-market retailers, however we will reach a tipping point where the good assets are all gone and what remains will see little demand for retail use.”
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 13,000 just in the State of Wisconsin.
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