The region’s industrial market had 1.06 million square feet of positive net absorption in the first quarter, when the vacancy rate was at 7.34 percent.
The region’s industrial real estate market has been improving steadily since the third quarter of 2010 when the vacancy rate peaked at 9.2 percent.
“Our industrial market continues to strengthen with yet another quarter of strong absorption,” said Adam Matson, an industrial real estate broker with NAI MLG Commercial. “We have seen our quality product availability diminish while demand has strengthened. With the increased demand prices are stabilizing on both lease and sale transactions and we are seeing companies needing to expand finally consider new construction as a viable option. With multiple 75,000-square-foot-plus users in our market looking to secure space, we look forward to seeing another strong absorption quarter, as well as potential announcements of planned construction projects in our southern counties.”
Second quarter industrial vacancy and absorption rates, by county:
- Milwaukee, 10.04 percent vacancy, 181,684 square feet of absorption
- Waukesha, 5.06 percent, 441,802 square feet
- Kenosha, 10.57 percent, 17,369 square feet
- Racine, 3.09 percent, -10,567 square feet
- Walworth, 4.26 percent, 18,185 square feet
- Ozaukee, 11.6 percent, -59,837 square feet
- Washington, 5.33 percent, -35,468 square feet
- Sheboygan, 4.55 percent, zero absorption