In an effort to save on rent, Madison-based Wisconsin Public Radio recently moved its Milwaukee office and studio to about 3,000 square feet of space at 310 W. Wisconsin Ave., formerly known as the Reuss Federal Plaza, in downtown Milwaukee. WPR's Milwaukee office and studio was previously located in the Milwaukee Center at 111 E. Kilbourn Ave., also downtown.

"It's a nice, new location," said Mike Crane, chief operating officer of WPR. "We were able to save on rent and increase studio capacity, so we're thrilled to be here."

The new space, located on the seventh floor of the Reuss building, was not equipped with a studio. WPR custom built four new studios with upgraded soundproofing capability, so the noise of the street does not interfere with broadcasting.

All of WPR's seven full time employees moved to the new location. The first broadcast from the new location came during the week of Christmas.

The relocation moves WPR from the 28-story Milwaukee Center, one of the downtown's class A office building, to the 14-story Reuss building, which has struggled to attract tenants for years. The Milwaukee Center, owned by Chicago-based Transwestern Investment Company LLC, is more than 90 percent leased, but the Reuss building, owned by Philadelphia-based RAIT Investment Trust, is about 40 percent vacant.

Meanwhile, across the street from the Reuss building, WUWM is considering plans to relocate from its space in the basement of the Plankinton Building at 161 W. Wisconsin Ave. WUWM is currently reviewing proposals from building owners.

Both WPR and WUWM are National Public Radio affiliates.

--- Rachelle Dragani

Despite the recession, a recent report by Santa Ana, Calif.-based Grubb & Ellis Co. predicts lower vacancy rates, steady leasing activity and positive absorption for the southeastern Wisconsin industrial real estate market.

The region's industrial market will continue to buck national trends. The national commercial real estate market is expected to have a rough year in 2009 by many industry observers, but the southeastern Wisconsin industrial market will be an exception, according to the Grubb & Ellis 2009 Real Estate Forecast report for the Milwaukee market.

"We didn't get all the upside (when the economy was booming), so we don't get all of the downside," said Jeff Horn, vice president of Brookfield-based Grubb & Ellis affiliate, Apex Commercial.

Some observations from the Grubb & Ellis report include:

• "The region is positioned well to ride out the economic storm of 2009."
• "The 2009 southeastern Wisconsin market is positioned well for positive absorption with limited speculative development throughout at least the first half of 2009."
• "Leasing activity will continue to be steady."
• "Average asking rental rates should increase only slightly and sale prices will likely hold firm throughout most markets."
• "Vacancy rates will continue to decrease as selected redevelopment and moderate speculative development is absorbed into the market."
• "The limited supply of modern product will continue to spur construction of speculative and build-to-suit developments."
• "It is anticipated new speculative projects will break ground in 2009 as a result of the increased demand and a shortage of high-bay facilities with modern amenities."

The report also says the I-94 corridor between Milwaukee and the Illinois state line will continue to be a hot spot for the industrial real estate market. The state's plans to expand the freeway could attract more development to the corridor.

"The Kenosha/Racine market continued to be robust (in 2008) and is attracting interest from metro Chicago and Milwaukee industrial developers and users, with new construction contributing to the positive net absorption for the region," the report states. "The Kenosha/Racine market also continues to expand ever closer to southern Milwaukee County and both markets enjoyed significant declines in vacancy in 2008. (In 2008) eight new speculative buildings were completed or started, ranging from 50,000 to 626,000 square feet. Several new business park expansions have already been announced and developers continue to position themselves with inventory for future projects."

Industrial development is also planned in southern Milwaukee County, including the 820,000-square-foot regional distribution and processing center that the U.S. Postal Service plans to build in Oak Creek.

Grubb & Ellis is predicting a slight increase in the office space vacancy rate and a slight decrease in office space absorption rates for the metro Milwaukee area in its 2009 Real Estate Forecast.

"Look for the Milwaukee office market to witness little change in 2009, with many downtown and suburban tenants weathering the storm by signing short-term renewals when possible," the report states. "The downtown market will continue to see the most competition amongst existing landlords and developers, all vying for the same anchor tenants, while actively seeking to attract new ones."

Mequon-based Devo Properties announced that CVS Pharmacy plans to build a 13,225-square-foot store in the Sendik's West development at the corner of South 51st Street and Rawson Avenue in Franklin. The pharmacy is expected to open in the fall of this year. Other tenants in the shopping center include a Sendik's grocery store and a Bank Mutual branch. "CVS understands the demographics and all the advantages such as population density and traffic that this site offers," said Devo Properties principal Greg Devorkin. "I'm pleased to bring to the community of Franklin another stellar company with high quality offerings." Woonsocket, R.I.-based CVS has about 6,800 locations in the U.S.

Advertising firm moving from Third Ward to Walker's Point
The former Everitt Knitting building at 234 W. Florida St. in Milwaukee's Walker's Point/Fifth Ward area has landed another tenant. Street Cance, a Milwaukee-based advertising firm, plans to move its headquarters to the building from its current location at 223 N. Water St. in the city's Historic Third Ward.

Street Cance will move on Feb. 1, and is leasing 2,238 square feet of office space in the building, which is owned by an investors group led by Ann Pieper Eisenbrown, president and founder of Pieper Properties Inc. Dan Mickelsen and Marianne Burish of Siegel-Gallagher represented the building owners in brokering the lease.

Street Cance has nine employees and currently has about 3,000 square feet of space in the Third Ward. The company's new space on Florida Street will be more efficient and the building has a major advantage: on site parking, said Street Cance president David Street.

Pieper’s group, 234 Florida LLC, has redeveloped the seven-story 84,500-square-foot Florida Street building into a mixed-use commercial building with 71,000 square feet of office space and 13,500 square feet of retail space.

Bergen, Norway-based NordicNeuroLab Inc.’s U.S. office is now occupying 625 square feet of space in the building. In addition, Pieper’s firm moved from its 900-sqaure-foot Third Ward location at 231 E. Buffalo St. to occupy 1,536 square feet of space in the 234 W. Florida St. building.

"(Tenants) are starting to roll in slowly," said Anthony Stich, marketing manager for Siegel-Gallagher. "I think on Florida Street, with the (Iron Horse) hotel that popped up over there, people are starting to head that way."

Dickman Company

• Edis Trucking leased 10,320 square feet of industrial space at 21228 Omega Circle, Franksville, from Larry King.
• Wilson Welding Inc. leased 3,750 square feet of industrial space at W154 N11417 Fond du Lac Ave., Germantown, from Tom Solomon.

Mid-America Real Estate

• Just Kidding, Ltd.  leased 1,230 square feet of space from Concord 37, LLC at Mequon Court II, 1300 - 1412 W. Mequon Road, Mequon.

 NAI MLG Commercial

 RFP Commercial

 Siegel-Gallagher, Inc.

• Norris & Associates leased 890 square feet of office space in the Granville Professional Building at 9001 N. 76th St., Milwaukee, from Granville Professional Bldg LLP.

Dickman Company

• Wiza Investments LLC purchased a 14,800-square-foot industrial building at S84 W18999 Enterprise Dr., Muskego, from C.I. Banker Wire & Iron Works Inc.

NAI MLG Commercial

• Studio Artisan Winery purchased a 6,300-square-foot building at 450 Interchange in Lake Geneva from Steven Hay.

Milwaukee-based Siegel-Gallagher recently hired Rod Mayer as the executive vice president of aviation for the firm's construction division. Mayer has 25 years of aviation and project management experience.

Milwaukee-based Whyte Hirschboeck Dudek S.C. recently expanded its real estate practice in Madison with the hiring Brian D. Anderson. Anderson concentrates his practice in commercial real estate acquisition, construction, disposition, finance, development and leasing.

Brookfield-based Shorewest Realtors recently added Lauri Burkard and Toni Spott as sales associates in its downtown Milwaukee office. 

Airport Sleep Inn now open
A new 82-room Sleep Inn & Suites hotel opened recently at 4600 S. Sixth St.. in Milwaukee near General Mitchell International Airport. The hotel is about 1.5 miles from the west entrance to General Mitchell International Airport and about half a mile from Interstate 94. Several new hotel developments have been proposed for sites near the airport in recent months. This is the first of those projects to break ground. Sleep Inn is a division of Silver Spring, Md.-based Choice Hotels International Inc. The hotel is being developed by West Bend-based American Design-Build and North Liberty, Iowa-based Kinseth Hospitality Companies.

ForeclosuresWI.com shutting down
The residential foreclosure crisis that hammered the nation's economy in 2008 provided a lot of information for ForeclosuresWI.com to report. However the president for the web site, Robert Jansen, said he is planning to shut it down. "I have decided to focus my personal time and resources on other business ventures, and accordingly, will be winding down ForeclosuresWI.com," Jansen said. "It has been a sincere pleasure being a trusted source for foreclosure information these past couple years."

CARW offers "rookie series"
The Commercial Association of Realtors Wisconsin (CARW) is offing a business development luncheon series this year targeted toward commercial real estate sales associates with less than three years of experience. More information is available at www.carw.com.

NAIOP changes name
The National Association of Industrial and Office Properties has changed its name to NAIOP. The Wisconsin chapter of NAIOP has changed its name to NAIOP Wisconsin, the organization announced this week. "NAIOP is the leading association for the development industry, extending its reach beyond office and industrial product types into mixed-use, medical office, retail and more," said Thomas J. Bisacquino, NAIOP president. "We recognize that our members engage in diverse development opportunities, and our brand expansion supports our vision of advancing responsible commercial real estate development."

IREM Forecast Breakfast, Thursday, Jan. 15, 2009, 7-9:30 a.m., Italian Community Center, 631 E. Chicago St., Milwaukee. For more information, call (414) 476-4736.

REACH Winter Gala 2009, The Big Chill, Saturday, Feb. 28, 7:30-10:30 p.m., The Eisner Museum, 208 N. Water St., Milwaukee. For more information, call (414) 271-2021.