Firms Relocating to Downtown Milwaukee Stimulate Office Sector

MILWAUKEE, WI — The Milwaukee economy is undergoing a change from manufacturing to more service-oriented industries, but the transition will take several years, according to a second-quarter Office Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

There are bright spots, however, such as the Downtown submarket, where local companies like Roundy and Manpower are moving in from the suburbs

(Colby Abbot Building, Downtown, top right photo. 735 Water office building, middle left)

“While investment activity may moderate further through the second half of the year, buyers with market knowledge will likely continue to target assets with repositioning or value-add opportunities, particularly in the suburbs,” says Matthew Fitzgerald, regional manager of the Milwaukee office of Marcus & Millichap.

Following are some of the most significant aspects of the Milwaukee Office Research Report:

· Developers are on pace to add 900,000 square feet of office space to the Milwaukee metro this year for a 3 percent stock increase.
· Vacancy is forecast to end the year at 15.8 percent.
· Asking rents are expected to gain 0.4 percent to $19.08 per square foot.
· Effective rents will end the year at $15.24 per square foot.
· The median price has appreciated roughly 15 percent to $111 per square foot during the past year.

For a copy of the complete Milwaukee Office Research Report, as well as reports on other markets nationwide, visit our website at http://www.marcusmillichap.com/

Press Contact: Stacey Corso
Communications Department
(925) 953-1716
.