The biggest problem in the the Milwaukee industrial market? It’s not vacancy rates. Those are low. And it’s not net absorption, either. That’s high. And rents? Those are on the rise here, too..
No, the big problem facing developers and end users in this area’s industrial market? It’s not easy finding good sites close to the freeway on which to build.
Just ask veteran commercial real estate pro Michael Kleber, director of industrial leasing for Milwaukee-based Zilber Property Group. He says that the industrial market in the Milwaukee area has remained consistently steady from 2016 through the second quarter of this year. There might be small ticks up or down, but demand for industrial space here has remained solid, he said.
The problem, though, is finding space, Kleber said.
“The metropolitan Milwaukee area has not seen the amount of spec development as you’ve seen in the I-94 corridor and in the Kenosha or Pleasant Prairie markets,” Kleber said. “Because we don’t have an overabundance of supply, you continue to see low vacancy rates here. You are starting to see some rent increases. The user demand is still there. It’s just a matter of finding good sites for new industrial space.”
Read the entire article at REJournals.