The redevelopment and revitalization of Milwaukee’s Historic Third Ward has been in progress for more than 30 years now, but some would say the momentum has never been stronger. The neighborhood has become one of Milwaukee’s most vibrant, blending several land uses in its 10 square blocks.
And now the Third Ward is increasing its population density and attracting more investment from national retailers and developers.
Recently, a flurry of national retailers have set up shop in the neighborhood. In the past year, Los Angeles-based fast-casual salad chain Sweetgreen opened a location at 300 E. Buffalo St., Houston-based lighting store Visual Comfort opened its doors at 318 N. Water St., and Vermont-based Ben and Jerry’s plans to open an ice cream shop at 203 N. Broadway.
These storefronts are joining a slew of other shops and restaurants backed by national brands that have been popping up in the Third Ward since the early 2000s.
“It’s kind of like a chicken and then the egg because the retail and restaurants have been growing and flourishing, and the residential has really been following that,” said Bruce Westling, managing director at commercial real estate firm Newmark. “A lot of the nationals you see landing have been in pursuit for years now and I think we’re going to see more, especially food and beverage, in the near future.”
In addition, a pair of large apartment developments, led by out-of-state firms, are progressing, which will add nearly 600 apartments to the neighborhood.
At the Third Ward’s gateway, Houston-based Hines is nearing completion on construction of its 333-unit apartment tower at 333 N. Water St. The 31-story building will set a new high for rents in Milwaukee at $3.99 on a price-per-square-foot basis. At the opposite end of the neighborhood, Bloomington, Minnesota-based Kaeding Development Group is about halfway done on construction of its 261-unit apartment building at 640 E. Summerfest Place. The building is set to start leasing in early 2025.
While the Third Ward has had steady development of housing over the past couple of decades, these projects’ combined 594 apartment units represent the most units the neighborhood has ever seen come online at one time, local real estate brokers said, and that’s a good thing for the more than 100 businesses in the neighborhood.
“Certainly, from a retail perspective, more people and more density almost always bode well for the attractiveness of an area to retailers of all kinds and types,” said Marianne Burish, executive vice president of commercial real estate firm Transwestern. “Anybody that relies on foot traffic loves additional density and in the Third Ward specifically, it’s a compact geographic area with cool buildings that lots of people find welcoming.”
As a pedestrian-driven submarket, brokers agree that 333 Water’s addition to Water Street will invite more businesses and consumers west from Broadway – the perennial favorite strip in the Third Ward for retailers – but traffic-calming measures would enhance Water Street.
“I’ll hear people say, ‘I’d consider that building but Water Street’s so busy,’ but it cuts both ways because that does give you a lot of visibility,” Burish said.
While most of the consumer interest in the downtown area has been focused on shopping and dining experiences, as more people move into the Third Ward, the demand for more neighborhood services will increase.
“There are definitely still some holes in the service platform in the Third Ward and downtown in general, but those things will fill in as the density continues to come into the marketplace,” Burish said. “People have been asking for a grocery store in the Third Ward for ages, for example.”
While Chicago-based Go Grocer opened a small 1,985-square-foot store in the Third Ward in early 2023, a large grocery store is unlikely to open in the neighborhood anytime soon. Retailers such as traditional, full-service grocery stores usually want a larger site and more parking than a boutique or restaurant, and land in the Third Ward is expensive. For instance, Hines paid $6 million for its 0.8-acre site. But increased population density will make the neighborhood more attractive to retailers, despite the high costs.
“As more bodies come into the neighborhood, the demand increases for certain services and it becomes increasingly more viable for some of those types of service providers who previously haven’t been able to find a way to make it economically viable,” Burish said.
