Milwaukee Industrial Market Report

Expanding infrastructure reinforces industrial recovery. More than 4 million square feet of net move-outs in the first half of 2025 pushed vacancy in Milwaukee to 6.0 percent, though the rate edged lower through mid-2026. A slowing delivery pipeline that is largely pre-leased should support further improvement, even as conditions remain mixed, with vacancy near 2 percent in Waukesha County versus more than 7 percent in Milwaukee and Racine counties. Expanding freight and power capacity is expected to enhance the metro’s appeal, as Milwaukee Mitchell International Airport advances a 337,000-square-foot cargo expansion and Racine County plans two new substations. That backdrop aligns with recent major commitments, including Foxconn’s planned $579 million build-out in Mount Pleasant and Rockwell’s proposed 1-million-square-foot facility in New Berlin. Low operating costs and a deep manufacturing labor pool position the metro to keep drawing tenants, including firms pursuing onshoring, though trade and energy volatility may keep near-term leasing measured.