The PARADIGM Shift: Summer 2024 Edition
In Q2 2024, the Southeast Wisconsin industrial real estate market absorbed 2.2 million SF, with the vacancy rate slightly decreasing to 5.7%. This is notably higher than Q2 2023’s 3.5% vacancy rate, reflecting increased availability. Key activities included 87 leases (1.4 million SF) and 68 property sales (2.2 million SF). Active construction reached 2.6 million SF across 19 projects, with significant developments in Milwaukee County, indicating strong demand despite economic challenges. With interest rates peaking and potential reductions anticipated, business owners and investors are gaining confidence in making long-term commercial real estate decisions.
PARADIGM Real Estate Corp. leverages local expertise to guide clients through this dynamic market, identifying high-value investment opportunities, securing favorable leases, and effectively marketing properties. Our strategies are tailored to maximize returns and achieve success in industrial real estate. Contact PARADIGM today for expert guidance!
– Q2 2024 Industrial Real Estate Snapshot for SE WI –
THE INDUSTRIAL MARKET
Positive Absorption
Q2 Total: 2,185,000 SF
Year-to-Date: 2,017,000 SF
Vacancy Rate
5.7% (both multi- and single-tenant properties)
15.2%: Multi-tenant Vacancy & 717,000 SF Absorption
Market Activity
Lease Transactions: 87 leases totaling 1.4 million SF
Property Sales: 68 properties over $156 million, totaling 2.2 million SF
Construction
Ongoing: 2.6 million SF across 19 projects
Milwaukee County: 796,000 SF under construction in 6 properties
Deliveries: 25 properties with 3.1 million SF year-to-date
THE ECONOMY
Unemployment Rates
Milwaukee: Increased to 3.4% (from 3.1% in May 2023)
U.S.: Increased to 4.0% (up 30 basis points from last year)
Wisconsin: 2.9%
Job Growth
Employment: 783,858
Industrial Jobs: 113,300
Overall decrease in Milwaukee manufacturing jobs by 900
More Q2 2024 market info here.
Full Q2 2024 report here. Information by REDI in partnership with CARW. All Rights Reserved, 2024. RESEARCHED AND POWERED BY MOODY’s.
– FEATURED LISTING –
FOR SALE: 2785 Park Ave. | Beloit
27,900 SF on 2.26 Acres
Zoned M-2
13′ – 26′ Clear Height
8 Overhead Doors
Great opportunity for owner/user
Income from existing tenant
Crane rails and beam, bus bars, and trench drains
15,000 SF unit Available Q1 2025
FOR SALE: 5277 W Beaver Creek Parkway | Brown Deer
30,031 SF on 1.92 Acres
20,000 SF Available
Zoned (M) Manufacturing
Ample Parking
Ample Loading
Fully Sprinklered
Income from Tenant in 10,000 SF unit
– Recent Deals –
Milwaukee County sold a former Milwaukee County Transit System bus terminal located at 1900 West Fiebrantz Avenue in Milwaukee to MKE NorthSide, LLC.
The property consists of two buildings and 95,338 square feet on 4.05 total acres, including a parking lot across the street at 4071 North 19th Place.
Matt Friedman of PARADIGM Real Estate represented the buyer in the transaction.
PARADIGM Real Estate represented AVS in the lease of a 21,040 square foot industrial shop space at 1425 Walnut Ridge Drive in Hartland, Wisconsin from Takoda Investments LLC.
Brian Parrish, MBA, SIOR, Matt Friedman & Jim Johnson of PARADIGM Real Estate represented the lessee in the transaction.
– BROKERAGE SERVICES AVAILABLE –
PARADIGM specializes in the sale and lease of industrial and investment real estate in Wisconsin since 2013.
SALE & LEASE LISTING REPRESENTATION
PROPERTY VALUATION
SALE LEASE-BACK ANALYSIS
SITE SEARCH & DEVELOPMENT
PARADIGM Real Estate Brokers
President & CEO
Vice President & Partner
Vice President
