After showing some
signs of improvement during the first quarter of the year, the metro Milwaukee office market declined significantly during the second quarter, according to the latest market report from the
Commercial Association of Realtors Wisconsin (CARW) and
REDIComps.
The area’s office space vacancy rate spiked to 18.6% during the quarter, up from 17.1% at the end of the first quarter and up from 16.3% a year ago.
The metro Milwaukee office market had negative net absorption of 746,929 square feet of office space during the quarter, which comes after positive absorption of 50,597 square feet of office space during the first quarter.
The downtown Milwaukee office market fared better than the regional market with a 16.8% office space vacancy rate and positive absorption of 45,000 square feet of office space during the second quarter, led by Veolia North America leasing 32,000 square feet of space and moving downtown from the city’s west side.
However, the suburban area is taking a bigger hit to its office market, with 792,000 square feet of negative net absorption during the second quarter and a vacancy rate of 19.9%. The biggest loss was in Wauwatosa where GE Healthcare vacated 254,400 square feet of office space.
Here’s a breakdown by Milwaukee-area submarket of second quarter office space vacancy rates:
- Milwaukee Central: 1.3%
- Waukesha Northwest-Lake Country: 2.7%
- Milwaukee South: 5.2%
- Waukesha Southwest: 5.4%
- Milwaukee North Shore: 14.4%
- Milwaukee Downtown East: 15.2%
- Mequon-Theinsville: 16.0%
- Milwaukee Downtown West: 17.9%
- Third Ward-Walker’s Point: 20.7%
- Brookfield: 22.4%
- Milwaukee Northwest: 22.6%
- Pewaukee: 23.5%
- Mayfair-Wauwatosa: 27.3%
- Milwaukee West Allis: 27.7%
- Waukesha Southeast-New Berlin: 37.5%
Here’s a breakdown by Milwaukee-area submarket of second quarter office space absorption:
- Milwaukee Downtown West: 32,296
- Waukesha Northwest-Lake Country: 20,136
- Milwaukee Downtown East: 18,172
- Milwaukee South: 8,462
- Mequon-Theinsville: 4,229
- Waukesha Southeast-New Berlin: 1,634
- Milwaukee Central: 0
- Waukesha Southwest: -189
- Third Ward-Walker’s Point: -5,394
- Pewaukee: -7,045
- Milwaukee North Shore: -22,570
- Brookfield: -115,554
- Milwaukee West Allis: -155,386
- Milwaukee Northwest: -199,649
- Mayfair-Wauwatosa: -326,071
