Milwaukee Industrial Market Report

Steady space demand aids near-term performance. Since 2018, demand for industrial space has helped year-end vacancy remain within the 2.7 to 3.7 percent band. These tight conditions have warranted consistent supply additions, with metro inventory growing at least three million square feet in each year since 2019. The robust need for space was exemplified by move-ins from Blain Supply, and Steele Solutions. Further commitments during the first half of 2023 by IPM Foods and other firms helped compress vacancy to 2.9 percent entering April. Still, leasing activity is expected to wane in the latter half of 2023 as higher capital costs come to bear. This, however, should have a minimal impact on Milwaukee’s notably tight operations as incoming developments are predominantly accounted for, directing remaining absorption to existing spaces this year.