The Milwaukee area's industrial space vacancy rate fell during the second quarter of this year from 7.6 percent in the first quarter to 7.3 percent, according to a report by Boston-based Colliers International. The company's local office is Milwaukee-based Colliers Barry. Milwaukee's industrial space vacancy late is lower than the national industrial space vacancy rate of 8.23 percent, which is up from 7.98 percent in the first quarter, according to Colliers International.

Boston has the highest industrial space vacancy rate in the nation, at 20.9 percent. Chicago has an industrial space vacancy rate of 8.9 percent. For the next three months, the Colliers International forecast predicts that Milwaukee's industrial space vacancy rate will decline more and rental rates will increase.

The Milwaukee area's industrial space is selling at $57 per square foot and has a capitalization rate of 8.15 percent, according to Colliers International.

Two requests for proposals (RFPs) from developers could lead to new buildings that dramatically reshape the area northwest of Water Street and State Street in downtown Milwaukee.

The Marcus Center for the Performing Arts is issuing a request for proposals (RFP) for a "high-quality, mixed-use" redevelopment of its 2.4-acre, 700-car parking structure property at the northwest corner of Water Street and State Street in downtown Milwaukee. Development proposals must be submitted to the Marcus Center by Sept. 7.

To obtain a copy of the RFP, visit www.marcuscenter.org/documents/MarcusCenterRedevelopmentRFP.pdf.

At the same time the city of Milwaukee has issued an RFP for a vacant 19,985-square-foot property, located along the Milwaukee River and just west of the Marcus Center parking garage. Responses to that RFP must be submitted to the Department of City Development by Sept. 28. To obtain a copy of the RFP, visit www.mkedcd.org/realestate/Edison/EdisonMain.html.

The fact that these two RFPs are being issued at the same time is just a coincidence, said Paul Mathews, president of the Marcus Center.

 Earlier development plans for the Marcus Center parking structure and the lot owned by the city have fallen through.

"While we have been working on this project for a number of years, the market may be better now," said Paul Mathews, president of the Marcus Center. "We're looking for some fresh ideas for what will be a signature project for the Marcus Center and the city."

The last time the city tried to attract development to its lot, the proposed 25-story River Tower condominium development fell through in 2002.

According to its RFP, the Marcus Center would prefer a development with retail/restaurant space on the first floor and office space or residential units on the upper floors. The project must include a new parking structure with at least 1,200 spaces and a skywalk connected to the Marcus Center. The skywalk would replace the existing skywalk.

The city's asking price for its property is $540,000. According to the city's RFP, officials want a mixed-use development and "ground floor use must activate the Riverwalk, the Highland Street pedestrian bridge and the walkway to Edison Street." The upper floors could have residential or office space.

A nearby property, the Rojahn & Malaney Co. wholesale florist building at 1005 N. Edison St., also may be a prime redevelopment site. Although developers have approached the company about buying its 18,784-square-foot, one-story building, the company has no plans to move, said chairman Walter Rojahn.

"We've been here since 1955," he said. "It's just a location that works for us. We are happy where we are. It's centrally located, near the freeway and our customers are used to us being here."

As several condominium and office developers have sprung up along the Milwaukee River downtown, Rojahn & Malaney has seen its property value and property taxes rise, Rojahn said. The property has an assessed value of $541,000, according to city records, up from the $531,000 assessment in 2006. Despite the rising property taxes, the company plans to stay put, Rojahn said.

The City of Milwaukee is seeking requests from developers to buy and redevelop the former Hawley Road Engine House fire station at 407 N. Hawley Road, Milwaukee. The 79-year-old, one-story, 4,792-square-foot building sits on a 19,692-square-foot lot. The city's asking price for the property is $350,000. The city wants the building to be redeveloped for office, retail or research and development use. Proposals must be submitted to the Department of City Development by Sept. 14. To read the RFP go to: www.mkedcd.org/realestate/HawleyRoad/HawleyMain.html.

Milwaukee-based Mandel Group Inc. recently purchased six buildings and about three acres of land in the Fifth Ward at 322-44 E. Florida St., Milwaukee, from JRB IV LLC. The transaction was brokered by Rand Wolf of CB Richard Ellis, who represented JRB. Mandel Group indicated that it is working on various development alternatives for the property. The Fifth Ward is becoming a hot area for redevelopment of old industrial sites as development from the Historic Third Ward is spreading south. The property that Mandel purchased can be seen across the Milwaukee River from the Third Ward riverfront property where Mandel plans to build Domus, a $50 million, 6-story, 61-unit condominium development. The building is also just south of where developer Bob Schultz plans to build Rivianna, a proposed $100 million development that would feature three towers, each 16 stories high, with a total of 165 condos and a 60-room boutique hotel, and the Transpak Corp. facility at 235 E. Pittsburg Ave., where Lighthouse Development Co. LLC is planning a mixed-use redevelopment. Tanspak is moving to a new facility in Franklin and the grand opening for that facility was held recently.

"We have been looking for the right acquisition in the Fifth Ward, recognizing that the area has great potential given its location between Historic Walker's Point and the Historic Third Ward," said Robert Monnat, chief operating officer for Mandel Group, which is one of the largest condominium developers in the area. "This property is a prominent piece of the area's historic fabric and provides an intriguing opportunity for a creative adaptive reuse development." The properties comprise about 206,000 square feet of building area. The buildings had housed the distribution operations for Brass Light Gallery of Milwaukee. Brass Light Gallery has consolidated and expanded its operations at a new location in the Menomonee Valley at 1101 W. St. Paul Ave., Milwaukee. Brass Light's new home became available as a result of Aldrich Chemical Co.'s relocation, which was forced by the Marquette Interchange construction project. Brass Light has been spread out in several historic buildings in Walker's Point and the Fifth Ward. "We really enjoyed our stay in the Fifth Ward, however, in order for our company to operate efficiently we needed a single building with large open floorplans to properly house our operations," said Stephen Kaniewski, president of Brass Light Gallery.

Ealon LLC purchased the 69,485-square-foot office building located on seven acres of land at 1050 Walnut Ridge Dr., Hartland, from License Products Inc. for $4.2 million. The property has an assessed value of $4.5 million, according to Waukesha County records. License Products was represented by Barry Chavin and Steve Anderson of MLG Commercial and Ealon was represented by Mark Smith of Judson & Associates in brokering the deal.

Joseph Zilber, the founder of Milwaukee-based Zilber Ltd., recently announced that the Joseph and Vera Zilber Foundation is making a $1.5 million donation to the Aurora Visiting Nurse Association (VNA). The money will help support a new hospice in the Milwaukee area and will provide funding for additional beds at the Aurora VNA Zilber Family Hospice, at 1155 Honey Creek Parkway in Wauwatosa. An earlier $1 million donation by Zilber was used to establish the Wauwatosa hospice. "Hearing from the many families who have shared positive memories at this hospice reinforced the value of providing more resources," Zilber said. The Aurora VNA does not yet have a specific site or timeline for the second hospice.

The Milwaukee office of Providence, R.I.-based Gilbane Building recently hired Ryan McDonald as an assistant project engineer for the Potawatomi Bingo Casino expansion project.

West Allis-based Triad Construction recently hired Jeff Wagner as chief estimator, Amanda DeGrave in the marketing department, Pat Barry as superintendent and promoted Rich Grasso to special projects manager.

The Milwaukee office of Madison-based J.H. Findorff & Son recently hired Eric Sadler as project engineer, Jenalyn Groeschel and Nathan Keller as project managers, and Amy Kenderish as a human resources generalist.

Waukesha-based Campbell Construction BBG recently hired Terry LaRue as an office manager.

West Allis-based HomeSale Realty recently hired Jeff Randall as assistant manager of the Waukesha and Hales Corners locations.

Brookfield-based Shorewest Realtors recently promoted Heather Petersdorff to sales director of the south suburban office in Oak Creek and Summer Hill to associate trainer.

Milwaukee-based Kahler Slater recently hired Christopher Bakke as director of information technology services and Elizabeth Sanders as senior client services coordinator.