Milwaukee Office Market Report

Class dynamics shape this year’s outlook. Class A performance, with vacancy entering 2026 roughly 300 basis points lower year-over-year, underscores the metro’s ongoing flight-to-quality trend. With the Class A pipeline fully pre-leased, incoming supply should have a limited impact on fundamentals, positioning the segment to record a 10th consecutive year of positive net absorption at the metro level. This trend has been particularly strong in the CBD since the pandemic. Even as upper-tier availability in the core will extend its multiyear decline in 2026, recent leasing activity suggests tenants are increasingly favoring Class B/C properties. More broadly across the market, lower-tier assets face a more cautious outlook as a greater number of lease expirations in 2026 elevates potential move-out risk — particularly in Waukesha County, where vacancy remains the metro’s highest, despite recent improvement.