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May 2020

Milwaukee Industrial Real Estate Summary: Leases, Sales, and Construction Stats

Milwaukee Wisconsin Industrial Commercial Real Estate Report - Ashley Capital

Following suit with most of the country, Milwaukee posted a major turnaround over the last decade in the aftermath of the economic recession in 2007 / 2008. According to US News and World Report, Milwaukee currently has an unemployment rate of 3.1%, which is 0.8% lower than the national average.

Milwaukee is known for precision manufacturing with several major players in the area, such as Harley-Davidson, Johnson Controls, and Rockwell Automation. These companies and others provide the foundation for a strong industrial jobs market and ultimately influences the industrial real estate market in the region.

It is important to address the current pandemic, and how it is affecting / going to have an effect on the economy overall. Fortunately, in Wisconsin, “the fundamentals of the market appear very strong, macroeconomic factors — such as the effect of the coronavirus pandemic — can quickly take the air of the industrial market’s sails. The effect of this pandemic remains to be seen.” This is further expanded upon in the recent Milwaukee industrial real estate update.

Ashley Capital compiles the top lease, sales, and under construction project statistics every quarter for Milwaukee’s industrial real estate market. These stats and transaction highlights include: latest property deliveries, net absorption, vacancy rates, cap rates, price / square foot for sales, and much more.

Milwaukee Wisconsin Industrial Real Estate Lease Statistics Q1 2020

Top Milwaukee Industrial Real Estate Lease Statistics

12 Month Deliveries in Square Feet: 4.2 million
12 Month Net Absorption in Square Feet: 3.2 million
Vacancy Rate: 4.3%
12 Month Rent Growth Rate: 1.3%

Top Milwaukee Industrial Leases (Past 12 Months)

1) Property: 11800 W Burleigh St
Submarket:
Mayfair / Wauwatosa
Leased SF:
298,940
Quarter:
Q2 2019
Leasing Rep:
Phoenix Investors, LLC

2) Property: 4353 – 4355 N Richards St
Submarket: 
Milwaukee East
Leased SF:
223,000
Quarter:
Q1 2020
Leasing Rep:
Phoenix Investors, LLC

3) Property: W210N12800 Gateway Xing
Submarket:
Washington East
Leased SF:
198,766
Quarter:
Q3 2019

4) Property: 5800 W Donges Bay Rd
Submarket:
SW Ozaukee
Leased SF:
168,358
Quarter:
Q4 2019
Tenant:
HB Performance Systems

5) Property: 6185 S Ace Industrial Dr
Submarket: Milwaukee SE
Leased SF:
113,778
Quarter:
Q2 2019
Tenant:
Menasha Packaging Company
Tenant Rep: NAI Pfefferly
Leasing Rep: Colliers International

Milwaukee Wisconsin Industrial Real Estate Sales Statistics Q1 2020

Top Milwaukee Industrial Sales Statistics (Past 12 Months)

Sales Comparables: 264
Average Cap Rate:
8.0%
Average Price/ SF: 
$52
Average Vacancy at Sale: 5.8%

Top Milwaukee Industrial Property Sales

1) Property: FedEx Ground (N96W14849 County Line Rd)
*Rating:
4
Year Built: 
2015
Building SF:
202,950
Vacancy:
0%
Price (PSF): 
$23,460,964 ($116)
Cap Rate: 
5.9%

2) Property: 5211 S 3rd St
*Rating: 4
Year Built: 1973
Building SF: 360,000
Vacancy: 
0%
Price (PSF): $22,928,470
Cap Rate: 6.5%

3) Property: 6051 S Moorland Rd
*Rating:
4
Year Built: 
2019
Building SF:
192,800
Vacancy: 
0%
Price (PSF): 
$18,500,000 ($96)
Cap Rate: 
Not Listed

4) Property: 4625 W Oakwood Park Dr
*Rating: 4
Year Built: Not Listed
Building SF: 250,000
Vacancy: 
0%
Price (PSF): $17,750,000 ($71)
Cap Rate: Not Listed

5) Property: Baptista’s Building (10000 S Franklin Dr)
*Rating:
4
Year Built: 
1996
Building SF:
246,348
Vacancy: 
0%
Price (PSF): 
$17,750,000
Cap Rate: 
Not Listed

*Rating is 1-5, 5 being the best

Milwaukee Wisconsin Industrial Real Estate Construction Statistics Q1 2020

Milwaukee Industrial Construction Projects Statistics

Properties Currently Under Construction: 11
Total Size in Square Feet:
1,438,128
Percent of Inventory:
0.7%
Preleased: 73.5%

Top Milwaukee Industrial Projects Under Construction

1) Property: 7W12922 Good Hope Rd
Rating*:
4
Building SF:
350,000
Stories: 
Not Listed
Completion:
Q2 2020
Developer/ Owner:
WP Walleye, LLC

2) Property: Illing Co HQ (W204 N13125 Goldndale)
Rating*:
4
Building SF:
248,000
Stories:
Not Listed
Completion:
Q2 2020
Developer/ Owner:
Illing Company Inc

3) Property: Phase II (NW102W 19300 Willow Creek)
Rating*:
3
Building SF:
240,000
Stories:
Not Listed
Completion:
Q1 2020
Developer/ Owner:
Trails AG LLC

4) Property: W226N918 Northmound Dr
Rating*:
4
Building SF:
131,405
Stories:
2
Completion:
Q2 2020
Developer/ Owner:
Briohn Building Corporation

5) Property: Commerce Center East III (15555 W Commerce Center)
Rating*:
3
Building SF:
126,700
Stories:
1
Completion:
Q2 2020
Developer/ Owner:
Interstate Partners

*Rating is 1-5, 5 being the best

Data Sources: Ashley Capital & CoStar