southeast Wisconsin Market Summary:
Commercial Real Estate has been an increasingly turbulent market as pricing adjusts to the increase in interest rates in 2022/2023. The Industrial market has performed well, however early 2024 had experienced a slow down which was largely expected. The sharp rise in interest rates and elevated construction costs has nearly wiped out speculative construction. That supply shortage is now hitting the market as projects that take about 18-24 months are now complete and there is effectively zero new supply in the pipeline (speculative). The first Quarter of 2024 did experience a slowdown partly due to decreased overall demand and a bubble of new buildings being delivered. The Q2 numbers appear to show the expected rebound as new construction that went online in the first quarter is largely absorbed, vacancy declined, and lease rates continue to increase.
Waukesha County Market
The Waukesha County market has remained extremely tight. Speculative construction has halted which is keeping supply low. A few opportunities for large blocks of space became available in Q2 but are expected to be absorbed by year end. Look for developers to promote Build to Suit projects and companies to take on new construction for their specific purposes. Projects in Northern Pewaukee and Southern Sussex are expected to begin. Industrial land is in short supply especially for buildings under 100,000 SFas Big Box development has taken over and new business parks have not been constructed for smaller companies. Available properties are coming to the market but are quickly grabbed. Companies should expect continued competition for space
Check out the status of these Waukesha County properties:
1717-1718 Pearl St, Waukesha 175,508 Sq Ft. For Lease
15805 Overland Dr, New Berlin 35,561 Sq Ft. For Sale
W227N2837 Duplainville Rd, Pewaukee 99,991 Sq Ft. For Lease
406 Commerce St, Waukesha 98,183 Sq Ft. Sold
N29W23810 Woodgate Ct, Pewaukee 48,739 Sq Ft. Sold