Industrial Market Report Q3 2016

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Metro MilwaukeeIndustrial Market Report2016 Q3

COMMERCIAL REAL ESTATE SERVICES WORLDWIDE

http://www.mlgcommercial.com/

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Inventory (SF)

Available (SF)

Availability Rate (%)

Vacant (SF)

Vacancy Rate (%)

Quarterly Net Absorption

(SF)

Average Rental Rate

(NNN)Manufacturing 158,146,845 8,195,971 5.18% 4,690,576 2.97% 982,152 $4.30

Whse/Distribution 72,650,505 7,287,304 10.03% 4,980,472 6.86% (170,014) $4.28

Flex 45,600,812 3,312,594 7.26% 1,912,787 4.19% 106,441 $4.91

2016 Q3 276,398,162 18,795,869 6.80% 11,583,835 4.19% 918,579 $4.50

2016 Q2 276,227,056 18,981,107 6.87% 12,198,496 4.42% 904,874 $4.50

2016 Q1 275,026,808 19,863,083 7.22% 11,629,211 4.23% 2,487,862 $4.44

Property City Tenant Size Bldg Type8448 38th St Kenosha Ariens Company 601,439 Manufacturing

9009 N 51st St Milwaukee Milsco Manufacturing 154,800 Manufacturing

320-334 W Vogel Ave Milwaukee Wixon, Inc 149,147 Whse/Distribution

Property City Buyer Size Price11800 W Brown Deer Rd Brown Deer Reyes Holdings 360,418 $19,034,061

200 W Capitol Dr Glendale D & K Management 279,636 $5,820,000

5307 95th Ave Kenosha Store Master 68,849 $4,220,000

*The sum of the past four quarters net absorption divided by the current inventory.

Industrial Snapshot

Significant Lease Transactions

Significant Sale Transactions

Quarterly Abosrption, Absorption %*, Vacancy Rate


Industrial Submarket Statistics

Some information contained herein has been obtained from third party sources deemed reliable but has not been independently verified by NAI MLG Commercial. NAI MLG Commercial makes no warranties or representations as to the completeness or accuracy thereof. NAI MLG Commercial makes no guarantee about projections, opinions, assumptions or estimates. Occasionally corrected or updated information becomes available for both current and historical data thereby invalidating specfic comparison to previously issued reports.

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SubmarketInventory

(SF)Availablity Rate (%)

Milwaukee 94,584,752 8,189,826 8.7% 4,503,999 4.8% 354,779

Flex 12,145,240 1,104,705 9.1% 574,964 4.7% 7,167

Manufacturing 53,515,085 3,391,945 6.3% 1,857,631 3.5% 306,675

Whse/Distribution 28,924,427 3,693,176 12.8% 2,071,404 7.2% 40,937

Waukesha 71,756,671 3,641,436 5.1% 1,899,621 2.6% 269,329

Flex 16,982,361 868,616 5.1% 412,365 2.4% 93,616

Manufacturing 37,591,116 1,708,751 4.5% 709,730 1.9% 182,513

Whse/Distribution 17,183,194 1,064,069 6.2% 777,526 4.5% (6,800)

Racine 28,848,011 2,007,502 7.0% 1,749,177 6.1% (348,580)

Flex 1,463,635 148,829 10.2% 134,029 9.2% (2,029)

Manufacturing 22,093,641 838,231 3.8% 594,706 2.7% (137,400)

Whse/Distribution 5,290,735 1,020,442 19.3% 1,020,442 19.3% (209,151)

Kenosha 26,027,205 1,626,226 6.2% 1,034,933 4.0% 609,239

Flex 2,195,824 110,590 5.0% 55,386 2.5% 0

Manufacturing 11,445,038 897,779 7.8% 581,779 5.1% 609,239

Whse/Distribution 12,386,343 617,857 5.0% 397,768 3.2% 0

Washington 19,711,444 1,300,577 6.6% 765,509 3.9% 81,187

Flex 6,733,928 497,060 7.4% 257,196 3.8% 13,987

Manufacturing 9,613,032 196,957 2.1% 46,681 0.5% 67,200


Sheboygan 14,747,237 401,425 2.7% 368,800 2.5% 0

Flex 2,656,199 63,425 2.4% 58,800 2.2% 0

Manufacturing 9,613,032 310,000 3.2% 310,000 3.2% 0

Whse/Distribution 2,478,006 28,000 1.1% - 0.0% 0

Ozaukee 11,826,179 1,013,925 8.6% 830,110 7.0% (20,852)

Flex 2,565,992 519,369 20.2% 420,047 16.4% (6,300)

Manufacturing 7,991,425 494,556 6.2% 410,063 5.1% (19,552)

Whse/Distribution 1,268,762 0 0.0% - 0.0% 5,000

Walworth 8,896,663 614,952 6.9% 431,686 4.9% (26,523)

Flex 857,633 0 0.0% - 0.0% 0

Manufacturing 6,522,350 357,752 5.5% 179,986 2.8% (26,532)


Grand Total 276,398,869 18,795,869 6.8% 11,583,835 4.2% 918,579

Available (SF)Vacant

(SF)Vacancy Rate (%)

Quarterly Net Absoprtion (SF)

NetAbsorption

VacancyRate

UnderConstruction

AverageAsking Rate

Q3 Industrial Market Indicators

Source: CoStar & XceligentThe information contained herein has been given to us by sources we deem reliable. We have no reason to doubt its accuracy, however, we do not make any guarantees. All information should be verified before relying thereon.


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Average Asking NNN Rental Rates & Vacancy Rate

Vacancy Rate by Specific Use

Sale Transaction Volume ($) and Average Price/SF

Lease Transaction Volume (SF)

*Recorded Through 9.30.2016


2016 Q3

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View our Interactive Market Report Map at MLGCommercial.com

Sheboygan Co.Inventory SF: 14,747,237Availablity: 2.72%Vacancy: 2.5%

Washington Co.Inventory SF: 19,711,444Availability: 6.60% Vacancy: 3.88%

Ozaukee CoInventory SF: 11,826,179Availability: 8.57%Vacancy: 7.02%

Waukesha Co.Inventory SF: 71,756,671Availability: 5.1%Vacancy: 2.6%

Milwaukee CoInventory SF: 94,584,752Availability: 8.7%Vacancy: 4.8%

Walworth CoInventory: 8,896,663Availability: 6.91%Vacancy: 4.85%

Racine CoInventory SF: 28,848,011Availability: 6.96%Vacancy: 6.06%

Kenosha Co.Inventory SF: 26,027,205Availability: 6.25%Vacancy: 3.98%

Sheboygan Co.Sale Transactions: $8,664,259Sold SF: 535,379Leased SF: 42,600

Waukesha Co.Sale Transactions:$323,517,448Sold SF:6,722,591 Leased SF: 3,219,873

Ozaukee Co.Sale Transactions:$30,725,500Sold SF: 1,657,262Leased SF: 43,483

Washington Co.Sale Transactions:$17,635,100Sold SF: 695,246Leased SF: 257,342

Milwaukee CoSales Transactions:$426,462,928 Sold SF: 13,023,326Leased SF:3,733,774

Walworth CoSale Transactions:$8,845,500Sold SF: 282,982Leased SF: 15,322

Racine CoSale Transactions:$36,168,993Sold SF: 1,566,361Leased SF: 831,397

Kenosha Co.Sale Transactions:$124,067,618 Sold SF: 3,677,145Leased SF:1,366,413

Current Vacancy Rate Heat Map

2015-16 Transactional Sale Volume ($) Heat Map

Low Vacancy

High Vacancy

Low Volume

High Volume

http://www.mlgcommercial.com/metro-milwaukee-industrial-market-stats/

http://http://www.mlgcommercial.com/metro-milwaukee-industrial-market-stats/




2016 Q3 Notable Transactions



Why NAI MLG Commercial?r

2965-2995 S Moorland RdNew BerlinSize: 24,000 SFSale Price: $1,350,000

2701 N Green Bay RoadRacineSize:112,843 SF$2,850,000

1500 Clarmar DriveSun PrairieSize: 236,198 SFSale Price: $1,500,000

9055 N 51st StBrown DeerSize: 27,500 SFSale Price: $1,075,000

S40W24160 Rockwood WayWaukeshaSize: 11,600 SFSale Price: $630,000

We are the market leading, full-service commercial real estate brokergage and property managment company providing exceptional service and expertise throughout Wisconsin for over twenty five years. Wheather you’r a commercial real estate buyer, seller, owner, tenant or developer, NAI MLG Commercial is your ideal partner given our depth of local market expertise, and our exceptional access to world of opportunity though the NAI Global network.



2016 Q3 New Listings

Listing Type

Property Name City Specific Use Available SF

Rate Contact

Lease N8W22350 W Johnson Dr Bldg A

Pewaukee Flex/R&D 67,287 $4.50 - $8.50 NNN

Brett Garceau (414) 395-4677

Lease 4930 S 2nd St Milwaukee Light Industrial 51,903 $3.95 NNN Adam Matson(414) 395-4686

Lease Franklin Business Center I Franklin Flex/R&D 43,560 $4.50 - $8.50 NNN

Curt Pitzen(414) 395-4688

Lease W231 N2844 W Roundy Cir

Pewaukee Light Industrial 36,844 $4.75 - $8.75 NNN

Stephen Provancher (414) 395-4689

Lease 2855-2925 S 160th St New Berlin Flex/R&D 33,600 $4.50 - $8.50 NNN

Travis Tiede (414) 395-4682

Lease Lilly Creek Business Center

Menomonee Falls

Flex/R&D 33,110 $3.95 - $7.95 NNN

Adam Matson(414) 395-4686

Lease W184S8400-W184S8410 Challenger Dr

Muskego Light Industrial 32,000 $4.50 - $8.50 NNN

Vytau Barcas(262) 818-5660

Lease N48 W13334 Hampton Rd

Menomonee Falls

Light Industrial 29,000 $4.25 - $7.25 NNN

Mitchell Starczynski(414) 395-4692

Lease Overview Park Place Menomonee Falls

Warehouse 28,000 $4.50 - $8.50 NNN

Adam Matson(414) 395-4686

Lease 4903-4907 S Howell Ave Milwaukee Flex/R&D 24,096 $3.95 NNN Adam Matson(414) 395-4686

Lease 3403 W Kiehnau Ave Milwaukee Light Industrial 24,000 $3.50 NNN Stephen Provancher(414) 395-4689

Lease 9220-9234 N 107th St Milwaukee Flex/R&D 12,960 $6.67 MG Mitchell Starczynski(414) 395-4692

Lease 411 Travis Ln Waukesha Flex/R&D 12,000 $5.60 MG Adam Matson(414) 395-4686

Lease & Sale

Technology Way LLC Saukville Light Industrial 31,409 $5.75 NNN$2,045,000

Brett Garceau (414) 395-4677

Lease &Sale

N115 W19301 Edison Dr Germantown Flex/R&D 20,008 $6.00 MG$1,200,000


Lease &Sale

9770 S 54th St Franklin Flex/R&D 14,280 $5.75 NNN Stephen Provancher (414) 395-4689

Lease & Sale

19235 84th St Bristol Flex/R&D 18,067 $6.00 NNN$1,500,000

Vytau Barcas(262) 818-5660

Lease & Sale

1515 Paramount Dr Waukesha Flex/R&D 12,060 $4.50 NNN$1,025,000


Sale 2745 Chicory Rd Mount Pleasant

Manufacturing 208,800 $3,300,000 Adam Matson(414)395-4686

Sale 2407 S 27th St. Milwaukee Flex/R&D 24,120 $2,550,000 Stephen Provancher(414) 395-4689

Sale 715 Center St Union Grove Light Industrial 14,014 $299,000 Vytau Barcas(262)818-5660

Sale 4203 Industrial Ct Sheboygan Flex/R&D 4,800 $315,000 Curt Pitzen(414) 395-4688

Sale 12420 W Derby Pl Butler Light Industrial 3,300 $185,000 Curt Pitzen(414) 395-4688



Methodology: The report includes all industrial properties larger than 10,000 SF within the 8 county Milwaukee metro. Excluded from the report are government owned buildings and those buildings considered “special use industrial”. For reporting purposes, incubator space is included within Flex; bulk warehouse, truck terminals, warehouse freezer space is included within Warehouse Distribution; light industrial is included under Manufacturing.

Leasing Activity: Measured in the amount of square footage that is committed to and signed under a lease obligation for a specific building in a given period of time. It includes direct leases, subleases and renewals of existing leases. It also includes any preleasing of an under construction building. Sale Activity: Measured in sales price recorded to the state of Wisconsin. Excluded sales are in bank foreclosures, bank owned sales, buildings less than 10,000 SF and those considered non arm length. Inventory: The total square footage of a building that can be occupied. Available Rate: A measurement expressed as a percentage of the total amount of available space divided by the total amount of existing inventory.

Vacancy Rate: A measurement expressed as a percentage of the total amount of vacant space divided by the total amount of existing inventory.

Net Absorption: The net change in occupied space over a given period of time. Unless noted, all net absorption figures include both direct and sublease space.

Past Year Trailing Absorption %: The sum of the past four quarters net absorption divided by the current inventory.

Sources used

Data: Xceligent, CoStar, market knowledge. Commentary: Metro Milwaukee Association of

Methodology, Definitions & Submarket Map

Some information contained herein has been obtained from third party sources deemed reliable but has not be independently verified by NAI MLG Commercial. NAI MLG Commercial makes no warranties or representation as to the completeness or accuracy thereof. NAI MLG Commercial makes no guarantee about projections, opinions, assumption or estimates. Occasionally corrected or updated information becomes available for both current and historical data thereby invalidating specific comparison to previously issued reports.



Travis TiedeSenior Vice Presidentt (414) 395-4682m (920) [email protected]

Barry Chavin, SIORPrincipalt (414) 395-4676m (414) [email protected]

Stephen ProvancherPrincipalt (414) 395-4689m (414) [email protected]

Vytau BarcasVice Presidentt (414) 347-9400m (262) [email protected]

Anthony BaretaSenior Vice Presidentt (414) 395-4675m (414) [email protected]

Brett GarceauSenior Vice Presidentt (414) 395-4677m (262) [email protected]

Adam Matson, SIORSenior Vice Presidentt (414) 395-4686m (414) [email protected]

Curt PitzenSenior Vice Presidentt (414) 395-4688m (262) [email protected]

Mitchell StarczynskiSales Associatet (414) 395-4692m (262) [email protected]

NAI MLG Commercial Industrial Team

757 N Broadway, Suite 700 | Milwaukee, WI 53202414 347 9400 | mlgcommercial.com


Industrial Market Report Q3 2016

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