MILWAUKEE — The Milwaukee office market is expected to face a year of mixed performance in 2008 as employers trim payrolls and developers accelerate deliveries of new space, according to the 2008 National Office Report by Marcus & Millichap, the nation’s largest real estate investment services firm.
Much of the demand for office space will be centered in the Downtown Milwaukee submarket, as a growing number of companies are moving their headquarters into the city center.
Also included in the report is the firm’s annual National Office Index (NOI), a snapshot analysis that ranks 43 office markets based on a series of 12-month forward-looking supply and demand indicators. Milwaukee moves down three places this year to No. 41.
“After slowing considerably in 2007, investment activity for local office assets has reached a sustainable pace,” says Matthew Fitzgerald, (photo at right) regional manager of Marcus & Millichap’s Milwaukee office. “Much of the market’s appeal comes from initial yields in the high-7 percent range, a healthy premium more than the national average.”
Following are some of the most significant aspects of the Milwaukee Office Research Report:
· Office construction will accelerate to 900,000 square feet in 2008, boosting stock by 3.1 percent.
· Vacancy is forecast to end the year at 14.3 percent.
· Asking rents will reach $19.52 per square foot by year-end 2008, a gain of 2.8 percent.
· Effective rents will advance to $16.02 per square foot, an increase of 2.8 percent.
· Institutional investors will maintain their focus on higher-quality assets that are priced below replacement costs.
In the 2008 NOI, Seattle moved up three places to secure the No. 1 spot, surpassing last year’s leader New York City, which slipped to No. 2. Boston moved up two spots to No. 3, while San Francisco jumped 12 places to the No. 4 position. Los Angeles slipped two spots, coming in at No. 5. For a copy of Marcus & Millichap’s National Office Report and the complete NOI rankings, visit www.MarcusMillichap.com.
Contact:
Stacey Corso
Public Relations Manager
Marcus & Millichap
2999 Oak Road
Suite 210
Walnut Creek, CA 94597
Office: 925.953.1716
Mobile: 415.672.6460
Fax: 925.953.1710
http://www.marcusmillichap.com/
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