Metro Milwaukee Industrial Market Review RETAIL OFFICE INDUSTRIAL LAND INVESTMENT NAI MLG COMMERCIAL 414 347 9400 757 N BROADWAY, SUITE 700, MILWAUKEE, WI 53202 MLGCOMMERCIAL.COM
Metro Milwaukee Industrial Market Report Year-over-Year Changes 1Q17 vs. 1Q18 NET ABSORPTION 3,000,000 2,500,000 2,000,000 AVAILABILITY 4Q17 vs. 1Q18 AVAILABILITY VACANCY Quarter-over-Quarter Changes NET ABSORPTION VACANCY ASKING S ASKING S Vacancy & Absorption Market Report Standards In December of 2017, one of our data providers, Xceligent, declared bankruptcy and ceased operations. As a result, CoStar is now our primary source of baseline data. Due to this change in data providers, our amount of tracked inventory has increased along with changes in availability, vacancy and historical analytics, all of which affects our market metrics and historical trend data. As in past reports, NAI MLG Commercial will continue to take considerable time and effort to verify the data contained in this report and will modify the data when necessary using proprietary information. 8.00% 7.00% 6.00% 1,500,000 1,000,000 500,000 - (500,000) (1,000,000) 2008 Q3 2008 Q4 2009 Q1 2009 Q2 2009 Q3 2009 Q4 2010 Q1 2010 Q2 2010 Q3 2010 Q4 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 5.00% 4.00% 3.00% 2.00% 1.00% (1,500,000) Quarterly Absorption Vacancy Rate (%) 0.00% www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 2
Milwaukee Metro Stats Significant Lease Transactions Property City Tenant Size SF 11559 80th Ave Pleasant Prairie Uline 417,384 4620 W Oakwood Park Franklin QuadPackaging 162,861 W277N2837 Duplainville Rd Pewaukee Zero Zone Inc 99,740 N59W13855 Manhardt Dr Menomonee Falls Anixter International 78,260 Significant Sale Transactions Snapshot Use / Quarter Inventory (SF) Availability Rate (%) Vacancy Rate (%) Quarterly Absorption YTD Absorption Flex 28,596,254 8.9% 4.4% (92,916) (92,916) Lt Ind 157,327,725 5.5% 2.8% 179,951 179,951 Whse/Dist 136,991,550 10.1% 5.2% 361,006 361,006 322,915,529 7.7% 3.9% 448,041 448,041 2017 Q4 322,859,807 7.0% 4.2% 991,388 5,511,028 2017 Q3 322,077,436 6.9% 4.0% 2,024,797 4,519,640 2017 Q2 320,040,689 7.2% 4.1% 2,040,904 2,494,843 Property City Buyer Size SF Price JC Penney DC Wauwatosa Phoenix Investors 2,002,825 $31,250,000 W232N2850 Roundy Cir E Pewaukee Veritiv Corporation 165,000 $8,449,200 Sara Investment Portfolio Milwaukee County Neuman Companies 124,780 $7,650,000 Significant Q4 Absorption Changes Positive Absorption Changes Negative Absorption Changes Property Absorption Property Absorption 11559 80th Ave 417,384 2201-2206 12th Ave (237,200) 10301 Enterprise Way 137,000 4611 N 32nd St (98,600) 10303 S Oakview Pky 118,000 214 E Florida St (57,000) 6950 51st St 72,000 600-634 E Vienna Ave (53,600) 2122 56th St 62,430 3247 W Glendale Ave (41,600) 198 N Harrison St 56,000 N8W22380 Johnson Dr (40,000) 9505 72nd Ave 45,479 1340 S Grandview Pky (37,762) 1615 Grebby St 40,000 4200 N Holton St (31,700) www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 3
Metro Milwaukee Industrial Market Report Sheboygan Vacancy (%) 2.5% Q1 Absorption (57,364) 2018 Absorption (57,364) Ozaukee Vacancy (%) 5.3% Q1 Absorption 693 2018 Absorption 693 Washington Vacancy (%) 1.2% Q1 Absorption 33,336 2018 Absorption 33,336 Milwaukee Vacancy (%) 5.7% Q1 Absorption (419,786) 2018 Absorption (419,786) Waukesha Vacancy (%) 2.0% Q1 Absorption 132,078 2018 Absorption 132,078 Racine Vacancy (%) 4.8% Q1 Absorption 117,138 2018 Absorption 117,138 Walworth Vacancy (%) 2.8% Q1 Absorption 67,360 2018 Absorption 67,360 Kenosha Vacancy (%) 3.3% Q1 Absorption 574,586 2018 Absorption 574,586 South South South Central Central North North North www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 4
Milwaukee Metro Stats Current Stats Qtrly Absorption (SF) 2018 Absorption (SF) Submarket Inventory (SF) Available (SF) Available (%) Vacancy (SF) Vacancy (%) Milwaukee Flex 14,562,689 1,343,194 9.2% 739,323 5.1% 8,660 8,660 Lt Ind 61,320,915 4,375,592 7.1% 2,526,405 4.1% (66,727) (66,727) Whse/Dist 47,646,623 7,561,948 15.9% 3,742,633 7.9% (361,719) (361,719) Total 123,530,227 13,280,734 10.8% 7,008,361 5.7% (419,786) (419,786) Waukesha Flex 6,799,285 578,398 8.5% 326,228 4.8% (70,374) (70,374) Lt Ind 39,926,166 975,307 2.4% 300,956 0.8% 132,144 132,144 Whse/Dist 28,687,862 1,635,249 5.7% 846,362 3.0% 70,308 70,308 Total 75,413,313 3,188,954 4.2% 1,473,546 2.0% 132,078 132,078 Racine Flex 432,258 92,338 21.4% 59,638 13.8% (8,707) (8,707) Lt Ind 7,167,092 748,085 10.4% 33,100 0.5% 58,000 58,000 Whse/Dist 25,686,410 2,241,716 8.7% 1,008,444 3.9% 525,293 525,293 Total 33,285,760 3,082,139 9.3% 1,101,182 3.3% 574,586 574,586 Kenosha Flex 435,205 15,530 3.6% 2,870 0.7% 3,800 3,800 Lt Ind 19,037,160 959,442 5.0% 580,854 3.1% 12,200 12,200 Whse/Dist 11,631,785 1,368,307 11.8% 915,762 7.9% 101,138 101,138 Total 31,104,150 2,343,279 7.5% 1,499,486 4.8% 117,138 117,138 Washington Flex 3,042,933 240,097 7.9% 79,338 2.6% 300 300 Lt Ind 9,373,759 302,053 3.2% 41,071 0.4% 12,200 12,200 Whse/Dist 7,482,839 309,351 4.1% 113,107 1.5% 20,836 20,836 Total 19,899,531 851,501 4.3% 233,516 1.2% 33,336 33,336 Sheboygan Flex 296,846 20,550 6.9% 11,300 3.8% 3,310 3,310 Lt Ind 4,849,972 74,464 1.5% 38,464 0.8% (9,664) (9,664) Whse/Dist 9,710,136 347,046 3.6% 314,510 3.2% (51,010) (51,010) Total 14,856,954 442,060 3.0% 364,274 2.5% (57,364) (57,364) Ozaukee Flex 195,914 15,500 7.9% - 0.0% - - Lt Ind 8,822,009 436,389 4.9% 217,843 2.5% 16,000 16,000 Whse/Dist 3,561,566 154,514 4.3% 134,514 3.8% 51,360 51,360 Total 12,579,489 606,403 4.8% 352,357 2.8% 67,360 67,360 Walworth Flex 2,831,124 226,287 8.0% 42,896 1.5% (29,905) (29,905) Lt Ind 6,830,652 748,307 11.0% 603,077 8.8% 25,798 25,798 Whse/Dist 2,584,329 176,527 6.8% - 0.0% 4,800 4,800 Total 12,246,105 1,151,121 9.4% 645,973 5.3% 693 693 Grand Total 322,915,529 24,946,191 7.7% 12,678,695 3.9% 448,041 448,041 www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 5
Metro Milwaukee Industrial Market Report Historic Vacancy Millions 25 20 15 10-5 8% 7% 6% 5% 4% 3% 2% 1% 0% Vacant SF 3 yr. Trailing Average 1 yr. Trailing Average Regional Vacancy 10% 8% 6% 4% 2% 0% 2008 Q3 2009 Q1 2009 Q3 2010 Q1 2010 Q3 2011 Q1 2011 Q3 2012 Q1 2012 Q3 2013 Q1 2013 Q3 2014 Q1 2014 Q3 2015 Q1 2015 Q3 2016 Q1 2016 Q3 2017 Q1 2017 Q3 North Central South www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 6
Trends Historic Absorption 3,500,000 3.5% 3,000,000 3.0% 2,500,000 2.5% 2,000,000 2.0% 1,500,000 1.5% 1,000,000 1.0% 500,000 0.5% - 0.0% (500,000) -0.5% (1,000,000) -1.0% (1,500,000) -1.5% Q Absorption SF 1 yr. Trailing Average Growth Regional Absorption 2.5 2.0 Millions 1.5 1.0 0.5 0.0-0.5-1.0-1.5 2008 Q3 2009 Q1 2009 Q3 2010 Q1 2010 Q3 2011 Q1 2011 Q3 2012 Q1 2012 Q3 2013 Q1 2013 Q3 2014 Q1 2014 Q3 2015 Q1 2015 Q3 2016 Q1 2016 Q3 2017 Q1 2017 Q3 North Central South www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 7
Metro Milwaukee Milwaukee County Year-over-Year Changes 1Q17 vs. 1Q18 FLEX LIGHT IND WAREHOUSE TOTAL INVENTORY (SF) 14,562,689 61,320,915 47,646,623 123,530,227 AVAILABILITY (SF) 1,343,194 4,375,592 7,561,948 13,280,734 AVAILABILITY (%) 9.2% 7.1% 15.9% 10.8% VACANCY (SF) 739,323 2,526,405 3,742,633 7,008,361 VACANCY (%) 5.1% 4.1% 7.9% 5.7% Q1 ABSORPTION (SF) 8,660 (66,727) (361,719) (419,786) # People 947,960 # Businesses 28,941 # Employees 511,710 Unemployment Rate 5.9% NET ABSORPTION AVAILABILITY VACANCY ASKING S Vacancy & Absorption 1,000,000 800,000 600,000 400,000 200,000 - (200,000) (400,000) (600,000) 2008 Q3 2008 Q4 2009 Q1 2009 Q2 2009 Q3 2009 Q4 2010 Q1 2010 Q2 2010 Q3 2010 Q4 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 Quarterly Absorption Vacancy Rate (%) 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% Source: CoStar, Xceligent, Esri & NAI MLG Commercial s proprietary data. www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 8
Industrial 2018 Availability Milwaukee County Available Space Industrial Building www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 9
Metro Milwaukee Waukesha County Year-over-Year Changes 1Q17 vs. 1Q18 FLEX LIGHT IND WAREHOUSE TOTAL INVENTORY (SF) 6,799,285 39,926,166 28,687,862 75,413,313 AVAILABILITY (SF) 578,398 975,307 1,635,249 3,188,954 AVAILABILITY (%) 8.5% 2.4% 5.7% 4.2% VACANCY (SF) 326,228 300,956 846,362 1,473,546 VACANCY (%) 4.8% 0.8% 3.0% 2.0% Q1 ABSORPTION (SF) (70,374) 132,144 70,308 132,078 # People 402,229 # Businesses 16,802 # Employees 274,596 Unemployment Rate 2.6% NET ABSORPTION AVAILABILITY VACANCY ASKING S Vacancy & Absorption 800,000 600,000 400,000 200,000 - (200,000) (400,000) (600,000) (800,000) 2008 Q3 2008 Q4 2009 Q1 2009 Q2 2009 Q3 2009 Q4 2010 Q1 2010 Q2 2010 Q3 2010 Q4 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 5% 4% 4% 3% 3% 2% 2% 1% 1% 0% Quarterly Absorption Vacancy Rate (%) Source: CoStar, Xceligent, Esri & NAI MLG Commercial s proprietary data. www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 10
Industrial 2018 Availability Waukesha County Available Space Industrial Building www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 11
Metro Milwaukee Racine County Year-over-Year Changes 1Q17 vs. 1Q18 FLEX LIGHT IND WAREHOUSE TOTAL INVENTORY (SF) 435,205 19,037,160 11,631,785 31,104,150 AVAILABILITY (SF) 15,530 959,442 1,368,307 2,343,279 AVAILABILITY (%) 3.6% 5.0% 11.8% 7.5% VACANCY (SF) 2,870 580,854 915,762 1,499,486 VACANCY (%) 0.7% 3.1% 7.9% 4.8% Q1 ABSORPTION (SF) 3,800 12,200 101,138 117,138 # People 197,399 # Businesses 6,018 # Employees 89,139 Unemployment Rate 5.6% NET ABSORPTION AVAILABILITY VACANCY ASKING S Vacancy & Absorption 600,000 500,000 400,000 300,000 200,000 100,000 - (100,000) (200,000) 9% 8% 7% 6% 5% 4% 3% 2% 1% (300,000) 2008 Q3 2008 Q4 2009 Q1 2009 Q2 2009 Q3 2009 Q4 2010 Q1 2010 Q2 2010 Q3 2010 Q4 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 Quarterly Absorption Vacancy Rate (%) 0% Source: CoStar, Xceligent, Esri & NAI MLG Commercial s proprietary data. www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 12
Industrial 2018 Availability Racine County Available Space Industrial Building www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 13
Metro Milwaukee Kenosha County Year-over-Year Changes 1Q17 vs. 1Q18 FLEX LIGHT IND WAREHOUSE TOTAL INVENTORY (SF) 432,258 7,167,092 25,686,410 33,285,760 AVAILABILITY (SF) 92,338 748,085 2,241,716 3,082,139 AVAILABILITY (%) 21.4% 10.4% 8.7% 9.3% VACANCY (SF) 59,638 33,100 1,008,444 1,101,182 VACANCY (%) 13.8% 0.5% 3.9% 3.3% Q1 ABSORPTION (SF) (8,707) 58,000 525,293 574,586 # People 170,454 # Businesses 4,535 # Employees 68,272 Unemployment Rate 7.0% NET ABSORPTION AVAILABILITY VACANCY ASKING S Vacancy & Absorption 2,000,000 1,500,000 1,000,000 500,000 - (500,000) (1,000,000) 2008 Q3 2008 Q4 2009 Q1 2009 Q2 2009 Q3 2009 Q4 2010 Q1 2010 Q2 2010 Q3 2010 Q4 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 Quarterly Absorption Vacancy Rate (%) 16% 14% 12% 10% 8% 6% 4% 2% 0% Source: CoStar, Xceligent, Esri & NAI MLG Commercial s proprietary data. www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 14
Industrial 2018 Availability Kenosha County Available Space Industrial Building www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 15
Metro Milwaukee Washington County Year-over-Year Changes 1Q17 vs. 1Q18 FLEX LIGHT IND WAREHOUSE TOTAL INVENTORY (SF) 3,042,933 9,373,759 7,482,839 19,899,531 AVAILABILITY (SF) 240,097 302,053 309,351 851,501 AVAILABILITY (%) 7.9% 3.2% 4.1% 4.3% VACANCY (SF) 79,338 41,071 113,107 233,516 VACANCY (%) 2.6% 0.4% 1.5% 1.2% Q1 ABSORPTION (SF) 300 12,200 20,836 33,336 # People 135,837 # Businesses 4,692 # Employees 66,314 Unemployment Rate 2.8% NET ABSORPTION AVAILABILITY VACANCY ASKING S Vacancy & Absorption 500,000 400,000 300,000 200,000 100,000 - (100,000) (200,000) 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% Quarterly Absorption Vacancy Rate (%) Source: CoStar, Xceligent, Esri & NAI MLG Commercial s proprietary data. www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 16
Industrial 2018 Availability Washington County Available Space Industrial Building www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 17
Metro Milwaukee Sheboygan County Year-over-Year Changes 1Q17 vs. 1Q18 FLEX LIGHT IND WAREHOUSE TOTAL INVENTORY (SF) 296,846 4,849,972 9,710,136 14,856,954 AVAILABILITY (SF) 20,550 74,464 347,046 442,060 AVAILABILITY (%) 6.9% 1.5% 3.6% 3.0% VACANCY (SF) 11,300 38,464 314,510 364,274 VACANCY (%) 3.8% 0.8% 3.2% 2.5% Q1 ABSORPTION (SF) 3,310 (9,664) (51,010) (57,364) # People 116,309 # Businesses 4,281 # Employees 68,007 Unemployment Rate 3.7% NET ABSORPTION AVAILABILITY VACANCY ASKING S Vacancy & Absorption 500,000 400,000 300,000 200,000 100,000 - (100,000) (200,000) (300,000) (400,000) 2008 Q3 2008 Q4 2009 Q1 2009 Q2 2009 Q3 2009 Q4 2010 Q1 2010 Q2 2010 Q3 2010 Q4 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 Quarterly Absorption Vacancy Rate (%) 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% Source: CoStar, Xceligent, Esri & NAI MLG Commercial s proprietary data. www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 18
Industrial 2018 Availability Sheboygan County Available Space Industrial Building www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 19
Metro Milwaukee Ozaukee County FLEX LIGHT IND WAREHOUSE TOTAL INVENTORY (SF) 2,831,124 6,830,652 2,584,329 12,246,105 # People 88,799 AVAILABILITY (SF) 226,287 748,307 176,527 1,151,121 AVAILABILITY (%) 8.0% 11.0% 6.8% 9.4% VACANCY (SF) 42,896 603,077 0 645,973 VACANCY (%) 1.5% 8.8% 0.0% 5.3% Q1 ABSORPTION (SF) (29,905) 25,798 4,800 693 Year-over-Year Changes 1Q17 vs. 1Q18 # Businesses 3,775 # Employees 49,534 Unemployment Rate 3.5% NET ABSORPTION AVAILABILITY VACANCY ASKING S Vacancy & Absorption 400,000 300,000 200,000 100,000 - (100,000) (200,000) (300,000) (400,000) (500,000) 2008 Q3 2008 Q4 2009 Q1 2009 Q2 2009 Q3 2009 Q4 2010 Q1 2010 Q2 2010 Q3 2010 Q4 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 Quarterly Absorption Vacancy Rate (%) 16% 14% 12% 10% 8% 6% 4% 2% 0% Source: CoStar, Xceligent, Esri & NAI MLG Commercial s proprietary data. www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 20
Industrial 2018 Availability Ozaukee County Available Space Industrial Building www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 21
Metro Milwaukee Walworth County Year-over-Year Changes 1Q17 vs. 1Q18 FLEX LIGHT IND WAREHOUSE TOTAL INVENTORY (SF) 195,914 8,822,009 3,561,566 12,579,489 AVAILABILITY (SF) 15,500 436,389 154,514 606,403 AVAILABILITY (%) 7.9% 4.9% 4.3% 4.8% VACANCY (SF) 0 217,843 134,514 352,357 VACANCY (%) 0.0% 2.5% 3.8% 2.8% Q1 ABSORPTION (SF) 0 16,000 51,360 67,360 # People 103,235 # Businesses 4,136 # Employees 50,310 Unemployment Rate 2.8% NET ABSORPTION AVAILABILITY VACANCY ASKING S Vacancy & Absorption 500,000 400,000 300,000 200,000 100,000 - (100,000) (200,000) (300,000) 2008 Q3 2008 Q4 2009 Q1 2009 Q2 2009 Q3 2009 Q4 2010 Q1 2010 Q2 2010 Q3 2010 Q4 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 Quarterly Absorption Vacancy Rate (%) 7% 6% 5% 4% 3% 2% 1% 0% Source: CoStar, Xceligent, Esri & NAI MLG Commercial s proprietary data. www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 22
Industrial 2018 Availability Walworth County Available Space Industrial Building www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 23
Metro Milwaukee Industrial Market Report Methodology, Definitions & Submarket Map 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. 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: CoStar, Esri, JSonline/USA Today, Milwaukee Business Journal, BizTimes Media, internal market knowledge. www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 24
NAI MLG Commercial Industrial Team Our Team Barry Chavin, SIOR Principal t (414) 395-4676 m (414) 254-9438 bsc@mlgcommercial.com Stephen Provancher Principal t (414) 395-4689 m (414) 271-4440 sp@mlgcommercial.com Vytau Barcas Vice President t (414) 347-9400 m (262) 818-5660 vbarcas@mlgcommercial.com Anthony Bareta Senior Vice President t (414) 395-4675 m (414) 254-7487 tbareta@mlgcommercial.com Brett Garceau Senior Vice President t (414) 395-4677 m (262) 501-8319 bgarceau@mlgcommercial.com Adam Matson, SIOR Senior Vice President t (414) 395-4686 m (414) 613-6096 amatson@mlgcommercial.com Curt Pitzen Senior Vice President t (414) 395-4688 m (262) 687-1433 cpitzen@mlgcommercial.com Travis Tiede Senior Vice President t (414) 395-4682 m (920) 475-8135 ttiede@mlgcommercial.com Mitchell Starczynski Senior Vice President t (414) 395-4692 m (262) 709-6043 mstarczynski@mlgcommercial.com Kris Kucharski Sales Associate t (414) 908-9156 m (262) 853-3473 kak@mlgcommercial.com www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 25
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