Milwaukee Market...INDUSTRIAL MARKET REPORT Market Key Statistics 2 Leasing 3 Rent 7 Construction 9...
Transcript of Milwaukee Market...INDUSTRIAL MARKET REPORT Market Key Statistics 2 Leasing 3 Rent 7 Construction 9...
Milwaukee Market
PREPARED BY
Amy Toles
Office Manager
Industrial Market Report
INDUSTRIAL MARKET REPORT
Market Key Statistics 2
Leasing 3
Rent 7
Construction 9
Under Construction Properties 11
Sales 13
Sales Past 12 Months 14
Economy 16
Market Submarkets 18
Supply & Demand Trends 22
Rent & Vacancy 24
Sale Trends 26
Milwaukee Industrial
7/18/2019Copyrighted report licensed to Judson & Associates, S.C. - 981635.
OverviewMilwaukee Industrial
12 Mo Deliveries in SF
672 K12 Mo Net Absorption in SF
(707 K)Vacancy Rate
4.1%12 Mo Rent Growth
3.2%Milwaukee’s proximity to Chicago stunts its ability togenerate demand from national logistics companies. Thisleaves the market reliant on local demand, fromcompanies such as UPS and FedEx and manufacturersthat need to ship finished goods. Overall vacancyremains very healthy, which has been the case for themajority of the current cycle. This supports the steadyrent growth witnessed during this cycle, even if thenumbers don’t necessarily jump off the page. Logistics
construction reigns supreme, and nearly 90% of thenewly delivered square footage in 2017-19 would beclassified as such. Demolitions are almost as common asnew construction, particularly in manufacturing assets,and developers typically avoid construction of largerwarehouses unless they are build-to-suit. Sales volumehas generally risen as the cycle has matured, althoughrising interest rates may reduce the investment appeal ofthis market, which is rooted in high cap rates.
KEY INDICATORS
Market RentVacancy RateRBACurrent Quarter Availability RateNet Absorption
SFDeliveries SF
UnderConstruction
$5.017.1%90,168,770Logistics 10.8% 182,009 0 3,786,419
$5.302.1%114,859,859Specialized Industrial 5.8% 68,551 0 333,000
$6.983.4%40,169,678Flex 6.2% 25,440 0 189,360
$5.464.1%245,198,307Market 7.7% 276,000 0 4,308,779
ForecastAverage
HistoricalAverage
12 MonthAnnual Trends Peak When Trough When
4.5%5.9%0.5%Vacancy Change (YOY) 8.3% 2006 Q1 3.5% 2018 Q3
1,213,4921,026,767(707 K)Net Absorption SF 4,928,374 2007 Q2 (1,953,771) 2010 Q3
2,126,176930,520672 KDeliveries SF 1,881,053 2018 Q2 95,823 2013 Q4
1.3%0.7%3.2%Rent Growth 5.1% 2007 Q1 -2.6% 2010 Q1
N/A$305.5M$397 MSales Volume $483.4M 2015 Q4 $112.4M 2010 Q4
7/18/2019Copyrighted report licensed to Judson & Associates, S.C. - 981635.
Page 2
LeasingMilwaukee Industrial
Vacancy in the Milwaukee logistics market is slightlylower than the national average, although occupancy isbifurcated. Since almost all construction is build-to-suit,newer properties boast occupancy far stronger than themetro average. Big users may have to go theconstruction route if they require new space, since largespaces are seldom available. Limited spec constructionshould help the market retain stable vacancy, although ahigher proportion of speculative square footage deliveredin 2018 when compared with years past.
Because Milwaukee’s proximity to Chicago hampers thismetro’s ability to generate demand from national logisticscompanies, Milwaukee’s large manufacturing base couldboost logistics demand, insofar as those companies needto ship their finished products and manage the supply ofinputs coming to the metro. Companies such as Briggs &Stratton, a manufacturer of gasoline-powered gardenequipment and the one of the metro’s largest tenantswith over 670,000 SF of logistics space occupied, shouldbenefit from a resurging local and national housingmarket. Slightly edging it out for total SF occupied isFedEx, which occupies over 700,000 SF in threebuildings. Food distributors, such as Sysco, GeneralMills, and US Foods, and 3PLs, including Ryder and
Almo Distributing, round out the list of keystone tenants.
Another source of future demand could come in the formof the newly proposed Foxconn factory, which isexpected to be 20 million SF and employ 13,000 workersonce fully integrated. Foxconn’s new Mt. Pleasantlocation will provide employment opportunities to nearbyresidents in Racine, Kenosha, and Milwaukee County. InDecember 2018 Foxconn purchased an additional 91acres outside its development zone in Sturtevant. Thedomino effect of such a large employer moving to Mt.Pleasant will likely culminate in increases in residential,retail and infrastructure investment and development inthe coming years.
The Port of Milwaukee, owned by the city government, isone of over a dozen intermodal facilities alongWisconsin’s eastern coast. The port handles a variety ofcargo, including bulk commodities, grain, fertilizers andfuel, and is connected to a couple (Union Pacific andCanadian Pacific) of Class I railways. Falling coalvolumes are a headwind brought on by the rise of naturalgas power plants, but the city is improving the roadinfrastructure around the facility to better handle heavymachinery.
NET ABSORPTION, NET DELIVERIES & VACANCY
7/18/2019Copyrighted report licensed to Judson & Associates, S.C. - 981635.
Page 3
LeasingMilwaukee Industrial
VACANCY RATE
AVAILABILITY RATE
7/18/2019Copyrighted report licensed to Judson & Associates, S.C. - 981635.
Page 4
LeasingMilwaukee Industrial
12 MONTH NET ABSORPTION SF IN SELECTED BUILDINGS
3rd QtrBuilding Name/Address Submarket Bldg SF Vacant SF
1st Qtr 2nd Qtr 4th Qtr 12 Month
Net Absorption SF
Milwaukee NW Ind 283,769 0 283,769 0 0 0 283,7694143 N 27th St
Milwaukee SE Ind 153,300 0 153,300 0 0 0 153,300Centerpoint Distribution Center
NE/Menomonee Fall… 157,000 26,000 0 131,000 0 0 131,000N59 W13401 Manhardt Dr
Milwaukee NW Ind 111,725 0 0 0 0 0 111,7256600 N Industrial Rd
Milwaukee NW Ind 134,314 0 0 0 0 0 107,7825800 W Hope Ave
NE/Menomonee Fall… 200,000 75,000 0 0 0 0 100,000W130 N8675 Old Orchard Rd
Milwaukee SE Ind 99,681 0 0 0 0 0 99,681500 W Opus Dr
Milwaukee NW Ind 98,600 0 98,600 0 0 0 98,600Former E.R. Wagner Manufactur…
North/Sussex Ind 192,160 95,570 0 0 0 0 96,590Sussex Corporate Center
Milwaukee SE Ind 112,144 0 0 0 0 0 90,202525 W Marquette Ave
Central Waukesha Ind 214,533 0 0 0 0 0 87,655901 Northview Rd
Milwaukee NW Ind 154,800 82,000 0 0 72,800 0 72,800Milsco Manufacturing
West Allis Ind 230,079 0 0 0 0 0 72,7954503-4699 W Greenfield Ave
North Ozaukee Ind 340,000 0 0 0 0 0 72,391500 N Spring St
Central Waukesha Ind 120,000 0 0 0 0 0 72,000N17W23665 W Bluemound Rd
NE/Menomonee Fall… 146,423 0 0 0 0 0 62,948Lilly Creek Business Park
North Ozaukee Ind 62,661 0 62,661 0 0 0 62,661W60N171 Cardinal Ave
2,811,189 278,570 598,330 131,000 72,800 0 1,775,899Subtotal Primary Competitors
242,387,118 9,880,095 (135,261) (268,527) 203,200 0 (2,482,504)Remaining Milwaukee Market
245,198,307 10,158,665 463,069 (137,527) 276,000 0 (706,605)Total Milwaukee Market
7/18/2019Copyrighted report licensed to Judson & Associates, S.C. - 981635.
Page 5
LeasingMilwaukee Industrial
TOP INDUSTRIAL LEASES PAST 12 MONTHS
Building Name/Address Submarket Leased SF Tenant Name Tenant Rep Company Leasing Rep CompanyQtr
4143 N 27th St Milwaukee NW 283,769 Jonco Industries - -Q1 19
6051 S Moorland Rd SE/Muskego 192,800 ECM Industries LLC Newmark Knight Frank Cushman & Wakefield |…Q1 19
5201 International Dr Milwaukee SE 153,300 - - Cushman & Wakefield |…Q4 18
7475 S 6th St * Milwaukee SE 120,000 Independence Corrugated… CBRE Colliers InternationalQ3 18
525 W Marquette Ave Milwaukee SE 112,144 Independence Corrugated - CBREQ3 18
4611 N 32nd St Milwaukee NW 98,600 MilwaukeeWarehouse.co… - CBREQ4 18
900 North St North Ozaukee 81,944 Midwest Assembly, Wareh… - -Q4 18
1700 W Cornell St Milwaukee NW 66,000 Uniti Fiber - The Barry CompanyQ4 18
430 W Grange Ave Milwaukee SE 56,000 Skywest Airlines - Colliers InternationalQ1 19
130-150 W Edgerton Ave Milwaukee SE 54,632 KAT Logistics - CBREQ2 19
3595 N 127th St Brookfield/New Berlin 54,040 - - Founders 3Q3 18
N59 W13401 Manhardt Dr NE/Menomonee Falls 52,224 - - The Dickman Company…Q1 19
305 E Mahn Ct * Milwaukee SE 51,543 Regina USA, Inc. - -Q4 18
7000 S 10th Milwaukee SE 51,000 - - Frontline Commercial R…Q1 19
15775 W Schaefer Ct SE/Muskego 50,549 US Alliance Fire Protection - Founders 3Q2 19
N7W23700 Bluemound Rd * Central Waukesha 50,000 Embedtek - -Q3 18
N7W23750 Bluemound Rd Central Waukesha 49,951 - NAI Pfefferle Interstate PartnersQ2 19
12855 W Silver Spring Dr * NE/Menomonee Falls 48,000 The Anderson Group The Barry Company The Barry CompanyQ4 18
190 W Marquette Ave Milwaukee SE 38,050 - - CBREQ2 19
N60W14521 Kaul Ave NE/Menomonee Falls 37,450 Wastebuilt Solutions LLC - The Dickman Company…Q1 19
600-634 E Vienna Ave Milwaukee East 35,000 - - C.M.K., IncQ3 18
5120 S International Dr Milwaukee SE 35,000 XPO Last Mile, Inc. - The Dickman Company…Q3 19
2855-2885 S Calhoun Rd Brookfield/New Berlin 32,000 - - Luterbach CompaniesQ1 19
2900 S 163rd Brookfield/New Berlin 31,660 GWI Ventures LLC - Founders 3Q3 19
4991 Hron Rd North Washington 30,652 - - The Barry CompanyQ2 19
303 Commerce St Central Waukesha 30,000 Edgar Prager & Sons, Inc. - Newmark Knight FrankQ1 19
N59 W13401 Manhardt Dr NE/Menomonee Falls 26,362 - - The Dickman Company…Q1 19
5333-5349 S Emmer Dr SE/Muskego 26,000 - - Colliers InternationalQ4 18
W130 N8675 Old Orchard Rd NE/Menomonee Falls 25,000 - - The Dickman Company…Q4 18
2151-2153 N Dr Martin Luther King Dr Milwaukee East 25,000 - - C.M.K., IncQ3 18
1327 6th Ave North Ozaukee 25,000 Kleen Test Products - The Dickman Company…Q1 19
5665-5693 S Westridge Dr SE/Muskego 24,000 Graphicolor Printing - CBREQ2 19
2152 S 114th St West Allis 23,504 World Pac - Colliers InternationalQ1 19
4876 6th Milwaukee SE 21,153 Birchwood Snow & Lands… - -Q1 19
N115W19230 Edison Dr Washington East 21,000 - - Newmark Knight FrankQ3 18
2969 N 114th St Mayfair/Wauwatosa 20,500 Foot Bowl LLC - CBREQ1 19
N24W23750 Watertown Rd Central Waukesha 20,000 PTW Auto Glass - 2000 Development Corp.Q1 19
1480 Independence Ave Washington West 20,000 Glenroy Pouch Converting - CBREQ1 19
4965 S Howell St Milwaukee SE 19,570 - - Newmark Knight FrankQ3 19
4410 N 132nd St Brookfield/New Berlin 19,418 - - CBREQ4 18
*Renewal
7/18/2019Copyrighted report licensed to Judson & Associates, S.C. - 981635.
Page 6
RentMilwaukee Industrial
Rent growth in 2019 continues to show strength. Theturnaround is a change from a stark past that includesseveral years of losses, so rents are still just slightlyabove their prerecession peak. The supply pipeline islight and disruptive speculative construction is rare, soit’s tempting to expect positive, albeit modest, gains over
the forecast period. Still, this is a locally driven marketwith sluggish employment growth, slow populationgrowth, and a long history of falling rents. That, plus thedearth of modern sheds, suggests Milwaukee’s rentgrowth may remain near the bottom of the top 54 metros’in the nation.
MARKET RENT GROWTH (YOY)
7/18/2019Copyrighted report licensed to Judson & Associates, S.C. - 981635.
Page 7
RentMilwaukee Industrial
MARKET RENT PER SQUARE FOOT
7/18/2019Copyrighted report licensed to Judson & Associates, S.C. - 981635.
Page 8
ConstructionMilwaukee Industrial
Following a 2017 that saw over 700,000 SF deliveracross the Milwaukee metro, even more square footagehas delivered in 2018. Overall, construction is fairlyspread out across the metro, but is generally a stone’sthrow away from one of the region’s highways, such as I-94 or Route 41. The majority of the new supply is stillbuild-to-suit, and vacancy in buildings delivered since2010 is at about 8% (the vast majority of that vacancy isin properties that delivered from 2016-2018). The largestdeliveries of the cycle include the 400,000 SFCenterPoint warehouse and the 203,000 SF FedExdistribution facility, both in Menomonee Falls. LibertyProperty Trust’s 171,000 SF building in the LibertyCorporate Preserve industrial park is a distant fourth,behind the 215,000 SF warehouse at 901 Northview Rd.The Liberty Corporate Preserve industrial park is leasedto a couple of 3PLs.
This cycle’s construction hotspots include the Pewaukee
Road corridor, which is right next to the WaukeshaAirport. Five buildings with just over 400,000 SF havedelivered there since 2010. Notable tenants in thoserecent deliveries include Staples, an office materialsupplier. Other active areas include New Berlin, OakCreek, and Germantown.
Creative destruction has forged the constructionlandscape as old industrial properties are flattened andreplaced by assets designed for higher and better use. Aprominent example is the demolition of the properties atW. Burleigh Street and Route 45 in Wauwatosa. Thosedemolitions made way for the Mayfair Collection, a high-profile and modern power center with a tenant roster thatincludes Nordstrom Rack, Sacks OFF 5th, DSW ShoeWarehouse, and Carter’s. In 2017, the developers brokeground on the first phase of a 400-unit apartmentcomplex on the site.
DELIVERIES & DEMOLITIONS
7/18/2019Copyrighted report licensed to Judson & Associates, S.C. - 981635.
Page 9
ConstructionMilwaukee Industrial
SUBMARKET CONSTRUCTION
Average Building Size
RankUnder Constr
Under Construction Inventory
All ExistingSF (000) Pre-Leased SF (000)SubmarketNo. RankBldgs Pre-Leased %
1 Milwaukee SE 6 3,301 550,09087.7% 2 48,6242,895 1
2 Central Waukesha 2 345 172,6000% 3 33,5020 3
3 West Allis 3 232 77,1910% 3 38,0960 6
4 SE/Muskego 1 193 192,800100% 1 37,459193 2
5 Milwaukee NW 1 150 150,0000% 3 40,6120 4
6 SW Outlying Milwaukee 1 89 88,6670% 3 32,8920 5
7 Brookfield/New Berlin 0 - -- - 32,760- -
8 Downtown East 0 - -- - 14,100- -
9 Downtown West 0 - -- - 30,310- -
10 Mayfair/Wauwatosa 0 - -- - 92,054- -
All Other 0 - -- 41,673-
Totals 14 4,309 307,77071.7% 40,5763,087
7/18/2019Copyrighted report licensed to Judson & Associates, S.C. - 981635.
Page 10
Under Construction PropertiesMilwaukee Industrial
Properties
13Square Feet
3,975,779Percent of Inventory
1.9%Preleased
77.7%
UNDER CONSTRUCTION PROPERTIES
UNDER CONSTRUCTION
Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner
Apr-20189700 S 13th St
Amazon2,600,000 4 Feb-2020
Hillwood Development Corporation
Hillwood Development Corporation1
Oct-20189900 S 13th St
Ryan Business Park199,000 1 Oct-2019
-
-2
Jun-20186051 S Moorland Rd
192,800 1 Aug-2019-
-3
Oct-2018610 W Rawson Ave
180,178 - Aug-2019-
-4
Apr-201912111-12255 W Carmen…
150,000 1 Oct-2019Morgan Harbour Construction
Scannell Properties5
Mar-2019140 E Rawson Ave
Building A142,520 1 Oct-2019
-
St. John Properties6
Aug-2018102 W Oakview Pky
132,000 1 Aug-2019HSA Commercial Real Estate
Susanne E Mordja7
7/18/2019Copyrighted report licensed to Judson & Associates, S.C. - 981635.
Page 11
Under Construction PropertiesMilwaukee Industrial
UNDER CONSTRUCTION
Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner
Apr-20199705 S Oakwood Park Dr
88,667 1 Dec-2019-
-8
Dec-20184775 W Electric Ave
86,574 - Aug-2019-
Interstate Partners9
Feb-201952 W Burnham St
Burnham Business Cent…85,000 1 Aug-2019
-
Able Equipment Company Inc10
Apr-2019100 W Burnham St
Burnham Business Cent…60,000 - Aug-2019
-
Burnham BC LLC11
Mar-2019140 E Rawson Ave
Building B46,840 - Oct-2019
-
St. John Properties12
Jun-2019W226N2952 Duplainville…
12,200 1 Oct-2019-
Briohn Building Corporation13
7/18/2019Copyrighted report licensed to Judson & Associates, S.C. - 981635.
Page 12
SalesMilwaukee Industrial
Sales volume has picked up steam in recent years. Thesale at 11800 W. Burleigh St. in Wauwatosa helped todrive last years' impressive volume. The 2 million SFwarehouse traded in 18Q1 for $31.25 million ($15.45/SF)between JCPenney Properties and Phoenix Investors,LLC. In February, JCPenney announced plans to closethe distribution and call center amidst a wave of storeclosures and layoffs. Phoenix Investors plans to keepmost of the physical infrastructure as-is, but willrenovate and reposition the asset. Phoenix Investorscited a limited high-end market of available industrialspace coupled with strong workforce demographics asreasons for the acquisition.
Another instigator of increased sales volume is theincrease in portfolio transactions. For instance, in 18Q1 asix property portfolio totaling 425,000 SF sold for about$25 million. The buyer, Milwaukee-based Zilber PropertyGroup, acquired 50% interest in the six industrialproperties (Zilber now has 100% ownership). Thebuildings, all located in New Berlin, ranged from 42,088SF to 127,368 SF, and were fully occupied at the time ofsale. About 25% of Milwaukee's sales volume in 2018 iscomposed of portfolio deals.
.
SALES VOLUME & MARKET SALE PRICE PER SF
7/18/2019Copyrighted report licensed to Judson & Associates, S.C. - 981635.
Page 13
Sales Past 12 MonthsMilwaukee Industrial
Sale Comparables
273Avg. Cap Rate
8.2%Avg. Price/SF
$40Avg. Vacancy At Sale
6.4%SALE COMPARABLE LOCATIONS
SALE COMPARABLES SUMMARY STATISTICS
Sales Attributes Low Average Median High
Sale Price $54,418 $1,971,725 $900,100 $23,460,964
Price Per SF $3.89 $40 $47 $156
Cap Rate 5.1% 8.2% 8.6% 13.8%
Time Since Sale in Months 0.2 6.5 6.9 11.9
Property Attributes Low Average Median High
Building SF 1,050 44,398 19,999 750,300
Ceiling Height 8' 18'4" 18' 45'
Docks 0 4 2 58
Vacancy Rate At Sale 0% 6.4% 0% 100%
Year Built 1881 1973 1977 2019
Star Rating 2.1
7/18/2019Copyrighted report licensed to Judson & Associates, S.C. - 981635.
Page 14
Sales Past 12 MonthsMilwaukee Industrial
Property Name - Address Rating Yr Built Bldg SF Vacancy Price Price/SF
Property
Sale Date
Sale
Cap Rate
RECENT SIGNIFICANT SALES
-1 FedEx Ground2015 202,950 0% $23,460,964 $116
N96W14849 County Line Rd5/30/2019 5.9%
-2 N15W24983 Bluemound…2012 173,000 0% $15,000,000 $876/14/2019 -
-3 N102W19400 Willow Cre…2018 162,230 0% $14,100,000 $8712/11/2018 -
-4 Warehouse, Machine Sh…1980 750,300 0% $13,275,000 $18
1100 Milwaukee Ave7/31/2018 9.9%
-5 135-137 W Forest Hill1992 148,405 72.1% $11,700,000 $792/1/2019 -
-6 770 S 70th St- 74,722 0% $9,200,000 $12312/13/2018 -
-7 7475 S 6th St- 120,000 0% $8,600,000 $729/28/2018 8.3%
-8 11400 W Burleigh St- 290,000 70.6% $8,000,000 $285/31/2019 -
-9 4107 W Orchard St1942 225,000 0% $7,900,000 $359/18/2018 -
-10 First Oak Creek Commer…2006 103,132 0% $7,626,935 $74
305 E Mahn Ct4/4/2019 5.1%
-11 W228N2801 Duplainville…- 188,210 0% $7,452,374 $4012/18/2018 8.7%
-12 AGI Fabricators1964 181,692 0% $7,400,000 $41
7000 W Calumet Rd8/28/2018 -
-13 N117W18456 Fulton Dr1990 100,800 0% $7,300,000 $729/28/2018 7.2%
-14 4343 S 6th St1956 108,003 0% $7,100,000 $661/10/2019 -
-15 W277N2837 Duplainville…1999 99,991 0% $6,847,626 $6812/18/2018 8.7%
-16 600 Perkins Dr1993 151,746 0% $6,600,000 $434/30/2019 -
-17 4143 N 27th St1948 283,769 0% $6,100,000 $213/28/2019 -
-18 Oak Creek Commerce C…2007 81,325 0% $6,014,239 $74
7420 S Howell Ave4/4/2019 5.1%
-19 5000 W Electric Ave2003 120,452 0% $5,400,000 $4510/22/2018 8.5%
-20 525 W Marquette Ave1979 112,144 0% $5,300,000 $4712/19/2018 6.5%
7/18/2019Copyrighted report licensed to Judson & Associates, S.C. - 981635.
Page 15
EconomyMilwaukee Industrial
The financial services and professional and businessservices sectors picked up in 2018, but not withoutheadwinds. The low-interest-rate environment ledNorthwestern Mutual to initiate a hiring freeze andannounce layoffs, although it did affirm its commitment tothe metro, citing the $450 million headquarters it hasunderway downtown. JPMorgan Chase and Anchor Bankadded pain to the financial sector, laying off 135 and 140people respectively. Finally, deflationary pressure ishurting grocery stores and food manufacturers. SouthernWisconsin Foods, ConAgra Foods, Piggly Wiggly, Sentry,TreeHouse Private Brands, Tyson Foods, Monsanto, andKraft Heinz announced local layoffs within the past fewyears.
The principal strength of Milwaukee is its low cost ofdoing business, relative to Chicago. Outside of higherwages and rent, Chicago’s high taxes are the primaryculprit for its higher cost of doing business. In 2016, a$225 million tax hike took effect, magnifying thedifference. Corporations responded by moving intoWisconsin, and Kenosha County in particular. GoldStandard Baking is the latest company to cross theborder, despite the fact that locating the property inIllinois makes more sense logistically. The $42 millionfacility could support 300 jobs at full capacity. Othercompanies to move across the border include VoncoProducts and Colbert Packaging, both packaging
companies.
A high density of college-educated workers has fueledthe area’s national concentration of education- andhealthcare-related employment. This does not justinvolve area hospitals and universities but extends tofirms like GE Healthcare, which has 5,900 localemployees who create cutting-edge medicaltechnologies such as million-dollar MRI machines.Manufacturing employment, which makes up 14.3% oflocal jobs (nationally it accounts for only 8.7%), has beena drag on the local economy principally becauseautomation has replaced routine-production workers,although a globalized economy and the rise of off-shoring play a role as well.
Numerous Fortune 1,000 companies headquartered inMilwaukee round out the economic picture. Thesecompanies include Johnson Controls, NorthwesternMutual, Kohl’s, Harley-Davidson, and WEC EnergyGroup. There’s also a notable concentration of financialinstitutions specializing in mutual funds and transactionprocessing, and a number of paper manufacturers,publishers, and printing companies. Milwaukee alsoserves as the headquarters of American Signal Corp.,the Koss Corp., Harken, Lesaffre Yeast Corp., MasterLock, and Manpower.
MILWAUKEE EMPLOYMENT BY INDUSTRY IN THOUSANDS
NAICS Industry Jobs LQ MarketUS USMarketUSMarket
Current Jobs Current Growth 10 Yr Historical 5 Yr Forecast
0.00%0.75%0.84%0.31%1.41%0.62%1.6119Manufacturing
0.49%0.14%1.14%0.24%0.86%1.12%0.9149Trade, Transportation and Utilities
0.38%0.25%0.84%0.31%-0.19%-1.09%0.979 Retail Trade
0.35%0.04%0.99%-0.79%1.01%1.06%1.052Financial Activities
0.77%0.44%-0.03%-0.73%0.43%0.69%0.685Government
0.26%0.28%2.06%0.92%3.17%0.10%0.733Natural Resources, Mining and Construction
0.55%0.14%2.12%1.92%2.30%3.06%1.2176Education and Health Services
1.00%0.65%2.61%1.97%2.27%-0.46%1.0128Professional and Business Services
0.56%0.57%0.00%-2.22%-0.91%-1.67%0.813Information
0.61%0.04%2.49%1.89%2.51%2.77%0.883Leisure and Hospitality
0.30%0.06%0.98%1.16%1.30%2.61%1.449Other Services
Total Employment 885 1.0 1.31% 1.56% 0.81% 1.42% 0.32% 0.56%
Source: Oxford Economics
LQ = Location Quotient
7/18/2019Copyrighted report licensed to Judson & Associates, S.C. - 981635.
Page 16
EconomyMilwaukee Industrial
Source: Oxford Economics
YEAR OVER YEAR JOB GROWTH
DEMOGRAPHIC TRENDS
Current ChangeCurrent Level
Metro U.S.Metro U.S.Demographic Category
10-Year Change
Metro U.S. Metro U.S.
Forecast Change (5 Yrs)
Population 329,091,9691,578,123 0.1% 0.6% 0.2% 0.7% 0.1% 0.7%
Households 121,200,578625,149 -0.1% 0.5% 0.2% 0.6% 0% 0.6%
Median Household Income $63,584$62,597 3.5% 3.3% 1.6% 2.2% 4.3% 4.4%
Labor Force 163,304,766825,986 -0.2% 0.9% 0.2% 0.6% 0.3% 0.6%
Unemployment 3.6%2.9% -0.3% -0.3% -0.6% -0.6% - -
Source: Oxford Economics
POPULATION GROWTH
Source: Oxford Economics
LABOR FORCE GROWTH INCOME GROWTH
7/18/2019Copyrighted report licensed to Judson & Associates, S.C. - 981635.
Page 17
SubmarketsMilwaukee Industrial
MILWAUKEE SUBMARKETS
7/18/2019Copyrighted report licensed to Judson & Associates, S.C. - 981635.
Page 18
SubmarketsMilwaukee Industrial
SUBMARKET INVENTORY
12 Month Deliveries Under Construction
Bldgs SF (000) Percent Rank
Inventory
Bldgs SF (000) Percent RankBldgs SF (000) % Market RankSubmarketNo.
1 Brookfield/New Berlin 15,004 6.1% 5 0 - - -458 0 0 0% -
2 Central Waukesha 25,629 10.5% 3 2 345 1.3% 2765 0 0 0% -
3 Downtown East 56 0% 25 0 - - -4 0 0 0% -
4 Downtown West 1,334 0.5% 22 0 - - -44 0 0 0% -
5 Mayfair/Wauwatosa 8,193 3.3% 13 0 - - -89 0 0 0% -
6 Milwaukee East 8,493 3.5% 12 0 - - -172 0 0 0% -
7 Milwaukee Near SW 14,197 5.8% 6 0 - - -328 0 0 0% -
8 Milwaukee NW 33,749 13.8% 1 1 150 0.4% 5831 0 0 0% -
9 Milwaukee SE 28,348 11.6% 2 6 3,301 11.6% 1583 3 272 1.0% 1
10 Milwaukee West 10,016 4.1% 9 0 - - -255 0 0 0% -
11 NE/Delafield 9,917 4.0% 10 0 - - -221 0 0 0% -
12 NE/Menomonee Falls 16,244 6.6% 4 0 - - -453 2 214 1.3% 2
13 North Ozaukee 9,513 3.9% 11 0 - - -249 0 0 0% -
14 North Shore 219 0.1% 24 0 - - -4 0 0 0% -
15 North Washington 6,298 2.6% 16 0 - - -165 0 0 0% -
16 North/Sussex 5,466 2.2% 17 0 - - -98 0 0 0% -
17 SE Ozaukee/I-43 Corr 349 0.1% 23 0 - - -8 0 0 0% -
18 SE/Muskego 6,555 2.7% 15 1 193 2.9% 4175 0 0 0% -
19 SW Outlying Milwaukee 5,394 2.2% 18 1 89 1.6% 6164 0 0 0% -
20 SW Ozaukee 3,123 1.3% 20 0 - - -64 0 0 0% -
21 SW/Mukwonago 2,180 0.9% 21 0 - - -72 0 0 0% -
22 Third Ward/Walkers Pt 7,398 3.0% 14 0 - - -134 0 0 0% -
23 Washington East 11,442 4.7% 8 0 - - -301 1 186 1.6% 3
24 Washington West 3,662 1.5% 19 0 - - -80 0 0 0% -
25 West Allis 12,419 5.1% 7 3 232 1.9% 3326 0 0 0% -
7/18/2019Copyrighted report licensed to Judson & Associates, S.C. - 981635.
Page 19
SubmarketsMilwaukee Industrial
SUBMARKET RENT
Growth
Asking Rent
Per SFSubmarketNo.
12 Month Asking Rent Annualized Quarterly Rent
RankRank GrowthRank
1 Brookfield/New Berlin 3.2%13 2.8% 17$5.71 17
2 Central Waukesha 7.7%4 2.7% 18$6.30 2
3 Downtown East 2.7%2 1.6% 21$7.52 24
4 Downtown West 2.3%3 4.2% 4$6.75 25
5 Mayfair/Wauwatosa 2.9%7 0.9% 24$6.02 22
6 Milwaukee East 3.3%20 3.4% 15$5.20 16
7 Milwaukee Near SW 4.3%18 4.2% 3$5.39 10
8 Milwaukee NW 3.7%22 1.6% 22$4.85 12
9 Milwaukee SE 3.6%21 4.7% 1$4.98 14
10 Milwaukee West 4.7%25 4.0% 5$3.70 7
11 NE/Delafield 8.6%8 3.7% 11$5.91 1
12 NE/Menomonee Falls 6.3%12 3.5% 14$5.80 3
13 North Ozaukee 2.7%16 0.8% 25$5.49 23
14 North Shore 4.5%24 3.9% 6$4.54 8
15 North Washington 5.7%23 2.6% 19$4.73 4
16 North/Sussex 5.3%10 3.5% 13$5.87 5
17 SE Ozaukee/I-43 Corr 4.4%1 1.5% 23$8.71 9
18 SE/Muskego 5.2%9 3.7% 12$5.90 6
19 SW Outlying Milwaukee 2.9%6 3.7% 9$6.11 20
20 SW Ozaukee 3.5%15 3.1% 16$5.50 15
21 SW/Mukwonago 4.1%14 3.8% 8$5.65 11
22 Third Ward/Walkers Pt 2.9%11 4.5% 2$5.82 18
23 Washington East 2.9%5 3.7% 10$6.12 21
24 Washington West 3.6%19 2.2% 20$5.21 13
25 West Allis 2.9%17 3.9% 7$5.46 19
7/18/2019Copyrighted report licensed to Judson & Associates, S.C. - 981635.
Page 20
SubmarketsMilwaukee Industrial
SUBMARKET VACANCY & NET ABSORPTION
12 Month Net Absorption
Rank Construct. Ratio
Vacancy
SF % of InvSF PercentSubmarketNo. Rank
1 Brookfield/New Berlin 225,968 1.5% -65,412 0.4% 74
2 Central Waukesha 579,296 2.3% -225,564 0.9% 48
3 Downtown East - - -0 0% --
4 Downtown West 146,212 11.0% -(17,251) -1.3% 1621
5 Mayfair/Wauwatosa 2,421,327 29.6% -(1,833,126) -22.4% 2522
6 Milwaukee East 857,036 10.1% -21,711 0.3% 919
7 Milwaukee Near SW 334,282 2.4% -(42,004) -0.3% 1910
8 Milwaukee NW 1,293,129 3.8% -380,495 1.1% 217
9 Milwaukee SE 1,037,458 3.7% 0.3471,992 1.7% 115
10 Milwaukee West 1,027,504 10.3% -(205,233) -2.0% 2420
11 NE/Delafield 27,571 0.3% -4,901 0% 101
12 NE/Menomonee Falls 201,459 1.2% 0.7321,098 2.0% 33
13 North Ozaukee 284,479 3.0% -187,889 2.0% 514
14 North Shore - - -0 0% --
15 North Washington 237,932 3.8% -(107,345) -1.7% 2216
16 North/Sussex 101,516 1.9% -155,551 2.8% 67
17 SE Ozaukee/I-43 Corr - - -0 0% --
18 SE/Muskego 108,069 1.6% -41,208 0.6% 86
19 SW Outlying Milwaukee 137,456 2.5% -(33,332) -0.6% 1711
20 SW Ozaukee 50,840 1.6% -(13,340) -0.4% 145
21 SW/Mukwonago 14,500 0.7% -(14,500) -0.7% 152
22 Third Ward/Walkers Pt 308,686 4.2% -(109,165) -1.5% 2318
23 Washington East 325,609 2.8% -(41,041) -0.4% 1812
24 Washington West 84,063 2.3% -(63,147) -1.7% 209
25 West Allis 354,273 2.9% -(102,942) -0.8% 2113
7/18/2019Copyrighted report licensed to Judson & Associates, S.C. - 981635.
Page 21
Supply & Demand TrendsMilwaukee Industrial
OVERALL SUPPLY & DEMAND
Net AbsorptionInventory
% of Inv Construction RatioSF SF Growth % Growth SFYear
2023 718,857 0.3% 0.3%654,282 1.1252,530,496
2022 773,619 0.3% 0.2%626,514 1.2251,811,639
2021 947,902 0.4% 0.3%747,021 1.3251,038,020
2020 3,419,843 1.4% 1.0%2,454,894 1.4250,090,118
2019 1,920,808 0.8% 0.9%2,126,287 0.9246,670,275
YTD 448,840 0.2% 0.2%601,542 0.7245,198,307
2018 1,247,733 0.5% 0%31,367 39.8244,749,467
2017 668,736 0.3% 0.9%2,235,213 0.3243,501,734
2016 845,006 0.3% 1.0%2,503,722 0.3242,832,998
2015 1,099,984 0.5% 0.2%496,315 2.2241,987,992
2014 (567,908) -0.2% 1.1%2,651,038 -240,888,008
2013 (1,525,965) -0.6% 0%56,788 -241,455,916
2012 (136,099) -0.1% 0.6%1,527,326 -242,981,881
2011 123,896 0.1% -0.1%(272,929) -243,117,980
2010 295,042 0.1% -0.7%(1,761,030) -242,994,084
2009 630,489 0.3% -0.6%(1,428,002) -242,699,042
2008 452,691 0.2% 1.1%2,655,324 0.2242,068,553
2007 1,581,605 0.7% 1.2%2,846,405 0.6241,615,862
SPECIALIZED INDUSTRIAL SUPPLY & DEMAND
Net AbsorptionInventory
% of Inv Construction RatioSF SF Growth % Growth SFYear
2023 50,268 0% -0.1%(134,858) -115,404,512
2022 54,091 0% -0.2%(198,467) -115,354,244
2021 66,275 0.1% -0.3%(380,411) -115,300,153
2020 51,086 0% -0.2%(224,721) -115,233,878
2019 322,933 0.3% 0.7%778,758 0.4115,182,792
YTD 0 0% 0.4%508,283 0114,859,859
2018 (52,659) 0% 0.2%200,033 -114,859,859
2017 67,720 0.1% 0.7%768,381 0.1114,912,518
2016 110,465 0.1% 0.7%814,163 0.1114,844,798
2015 270,140 0.2% -0.3%(345,102) -114,734,333
2014 (310,882) -0.3% 1.1%1,306,682 -114,464,193
2013 (8,800) 0% -0.4%(427,388) -114,775,075
2012 (137,739) -0.1% 0.9%1,013,306 -114,783,875
2011 80,285 0.1% -0.1%(105,099) -114,921,614
2010 150,442 0.1% -0.7%(834,578) -114,841,329
2009 (220,318) -0.2% -0.9%(1,011,551) -114,690,887
2008 (355,304) -0.3% 0.6%707,609 -114,911,205
2007 403,780 0.4% 0.3%320,881 1.3115,266,509
7/18/2019Copyrighted report licensed to Judson & Associates, S.C. - 981635.
Page 22
Supply & Demand TrendsMilwaukee Industrial
LOGISTICS SUPPLY & DEMAND
Net AbsorptionInventory
% of Inv Construction RatioSF SF Growth % Growth SFYear
2023 637,533 0.7% 0.8%813,974 0.896,636,603
2022 686,057 0.7% 0.9%870,968 0.895,999,070
2021 840,514 0.9% 1.3%1,239,557 0.795,313,013
2020 3,337,441 3.7% 2.8%2,674,242 1.294,472,499
2019 1,366,288 1.5% 1.5%1,352,815 1.091,135,058
YTD 400,000 0.4% 0.3%264,478 1.590,168,770
2018 1,300,392 1.5% -0.3%(253,586) -89,768,770
2017 589,301 0.7% 1.5%1,362,683 0.488,468,378
2016 450,258 0.5% 1.2%1,072,309 0.487,879,077
2015 665,889 0.8% 0.8%709,732 0.987,428,819
2014 (257,026) -0.3% 1.2%1,049,505 -86,762,930
2013 (1,472,432) -1.7% 0.4%342,170 -87,019,956
2012 (41,566) 0% 0.7%598,333 -88,492,388
2011 133,447 0.2% 0.2%162,515 0.888,533,954
2010 142,000 0.2% -1.1%(941,119) -88,400,507
2009 664,550 0.8% -0.5%(433,815) -88,258,507
2008 771,630 0.9% 2.0%1,708,971 0.587,593,957
2007 1,074,240 1.3% 2.5%2,187,924 0.586,822,327
FLEX SUPPLY & DEMAND
Net AbsorptionInventory
% of Inv Construction RatioSF SF Growth % Growth SFYear
2023 31,056 0.1% -0.1%(24,834) -40,489,381
2022 33,471 0.1% -0.1%(45,987) -40,458,325
2021 41,113 0.1% -0.3%(112,125) -40,424,854
2020 31,316 0.1% 0%5,373 5.840,383,741
2019 231,587 0.6% 0%(5,286) -40,352,425
YTD 48,840 0.1% -0.4%(171,219) -40,169,678
2018 0 0% 0.2%84,920 040,120,838
2017 11,715 0% 0.3%104,149 0.140,120,838
2016 284,283 0.7% 1.5%617,250 0.540,109,123
2015 163,955 0.4% 0.3%131,685 1.239,824,840
2014 0 0% 0.7%294,851 039,660,885
2013 (44,733) -0.1% 0.4%142,006 -39,660,885
2012 43,206 0.1% -0.2%(84,313) -39,705,618
2011 (89,836) -0.2% -0.8%(330,345) -39,662,412
2010 2,600 0% 0%14,667 0.239,752,248
2009 186,257 0.5% 0%17,364 10.739,749,648
2008 36,365 0.1% 0.6%238,744 0.239,563,391
2007 103,585 0.3% 0.9%337,600 0.339,527,026
7/18/2019Copyrighted report licensed to Judson & Associates, S.C. - 981635.
Page 23
Rent & VacancyMilwaukee Industrial
OVERALL RENT & VACANCY
Market Rent
Per SF Index % Growth Vs Hist PeakYear
Vacancy
SF Percent Ppts Chg
2023 113 0.3% 7.1%$5.79 11,474,916 4.5% 0%
2022 112 0.8% 6.8%$5.77 11,408,454 4.5% 0%
2021 112 1.2% 6.0%$5.73 11,260,048 4.5% 0.1%
2020 110 2.2% 4.7%$5.66 11,057,232 4.4% 0.3%
2019 108 2.4% 2.4%$5.54 10,088,475 4.1% -0.1%
YTD 106 1.0% 1.0%$5.46 10,158,665 4.1% -0.1%
2018 105 3.9% 0%$5.41 10,311,367 4.2% 0.5%
2017 101 2.1% -3.8%$5.20 9,104,501 3.7% -0.7%
2016 99 1.3% -5.7%$5.10 10,670,978 4.4% -0.7%
2015 98 1.5% -6.9%$5.03 12,329,694 5.1% 0.2%
2014 97 1.1% -8.3%$4.96 11,726,025 4.9% -1.3%
2013 96 0.4% -9.3%$4.91 14,944,971 6.2% -0.6%
2012 95 0% -9.6%$4.89 16,527,724 6.8% -0.7%
2011 95 -1.8% -9.6%$4.89 18,191,149 7.5% 0.2%
2010 97 -1.8% -7.9%$4.98 17,794,324 7.3% 0.8%
2009 99 -1.2% -6.2%$5.07 15,738,252 6.5% 0.8%
2008 100 0.2% -5.0%$5.14 13,679,761 5.7% -0.9%
2007 100 0.6% -5.2%$5.13 15,882,394 6.6% -0.6%
SPECIALIZED INDUSTRIAL RENT & VACANCY
Market Rent
Per SF Index % Growth Vs Hist PeakYear
Vacancy
SF Percent Ppts Chg
2023 118 0.5% 11.9%$5.77 3,577,443 3.1% 0.2%
2022 118 1.0% 11.4%$5.75 3,391,528 2.9% 0.2%
2021 116 1.7% 10.3%$5.69 3,138,530 2.7% 0.4%
2020 114 3.2% 8.4%$5.60 2,691,150 2.3% 0.2%
2019 111 5.0% 5.0%$5.42 2,414,203 2.1% -0.4%
YTD 108 2.6% 2.6%$5.30 2,361,889 2.1% -0.4%
2018 106 5.6% 0%$5.16 2,870,172 2.5% -0.2%
2017 100 2.4% -5.3%$4.89 3,122,864 2.7% -0.6%
2016 98 0.6% -7.6%$4.77 3,823,525 3.3% -0.6%
2015 97 1.1% -8.2%$4.74 4,527,223 3.9% 0.5%
2014 96 0% -9.2%$4.69 3,911,981 3.4% -1.4%
2013 96 0.2% -9.2%$4.69 5,529,545 4.8% 0.4%
2012 96 1.0% -9.4%$4.68 5,110,957 4.5% -1.0%
2011 95 -1.8% -10.2%$4.63 6,262,002 5.4% 0.2%
2010 96 -2.7% -8.6%$4.72 6,076,618 5.3% 0.9%
2009 99 -0.8% -6.0%$4.85 5,091,598 4.4% 0.7%
2008 100 -0.1% -5.2%$4.89 4,300,365 3.7% -0.9%
2007 100 -0.1% -5.1%$4.90 5,363,278 4.7% 0.1%
7/18/2019Copyrighted report licensed to Judson & Associates, S.C. - 981635.
Page 24
Rent & VacancyMilwaukee Industrial
LOGISTICS RENT & VACANCY
Market Rent
Per SF Index % Growth Vs Hist PeakYear
Vacancy
SF Percent Ppts Chg
2023 113 0.2% 5.9%$5.27 6,209,280 6.4% -0.2%
2022 113 0.6% 5.7%$5.26 6,384,125 6.7% -0.2%
2021 112 1.0% 5.0%$5.23 6,567,617 6.9% -0.5%
2020 111 2.0% 4.0%$5.17 6,964,884 7.4% 0.5%
2019 109 2.0% 2.0%$5.07 6,299,022 6.9% -0.1%
YTD 107 0.7% 0.7%$5.01 6,438,339 7.1% 0.1%
2018 107 3.5% 0%$4.98 6,302,817 7.0% 1.6%
2017 103 2.2% -3.3%$4.81 4,758,339 5.4% -0.9%
2016 101 2.1% -5.4%$4.71 5,531,721 6.3% -0.7%
2015 99 2.2% -7.3%$4.61 6,153,772 7.0% -0.1%
2014 97 2.5% -9.4%$4.51 6,197,615 7.1% -1.5%
2013 94 -0.8% -11.6%$4.40 7,504,146 8.6% -1.9%
2012 95 -0.5% -10.9%$4.44 9,318,748 10.5% -0.7%
2011 95 -1.5% -10.5%$4.46 9,958,647 11.2% 0%
2010 97 -0.8% -9.1%$4.52 9,987,715 11.3% 1.2%
2009 98 -2.3% -8.3%$4.56 8,904,596 10.1% 1.2%
2008 100 -0.4% -6.2%$4.67 7,806,231 8.9% -1.2%
2007 100 -0.3% -5.8%$4.69 8,743,572 10.1% -1.4%
FLEX RENT & VACANCY
Market Rent
Per SF Index % Growth Vs Hist PeakYear
Vacancy
SF Percent Ppts Chg
2023 102 0.2% -0.7%$7.07 1,688,193 4.2% 0.1%
2022 102 0.5% -0.9%$7.05 1,632,801 4.0% 0.2%
2021 102 0.5% -1.4%$7.02 1,553,901 3.8% 0.4%
2020 101 0.4% -1.9%$6.99 1,401,198 3.5% 0.1%
2019 101 -2.3% -2.3%$6.96 1,375,250 3.4% 0.6%
YTD 101 -2.0% -2.0%$6.98 1,358,437 3.4% 0.5%
2018 103 1.2% 0%$7.12 1,138,378 2.8% -0.2%
2017 102 1.1% -1.2%$7.03 1,223,298 3.0% -0.2%
2016 100 1.5% -2.3%$6.95 1,315,732 3.3% -0.9%
2015 99 0.9% -3.8%$6.85 1,648,699 4.1% 0.1%
2014 98 1.2% -4.6%$6.79 1,616,429 4.1% -0.7%
2013 97 2.6% -5.7%$6.71 1,911,280 4.8% -0.5%
2012 95 -1.2% -8.2%$6.54 2,098,019 5.3% 0.3%
2011 96 -2.4% -7.0%$6.62 1,970,500 5.0% 0.6%
2010 98 -1.6% -4.7%$6.78 1,729,991 4.4% 0%
2009 100 -0.4% -3.2%$6.89 1,742,058 4.4% 0.4%
2008 100 1.7% -2.8%$6.92 1,573,165 4.0% -0.5%
2007 98 3.7% -4.5%$6.80 1,775,544 4.5% -0.6%
7/18/2019Copyrighted report licensed to Judson & Associates, S.C. - 981635.
Page 25
Sale TrendsMilwaukee Industrial
OVERALL SALES
Completed Transactions (1)
Turnover Avg Price/SFDeals VolumeYear
Market Pricing Trends (2)
Avg Price Price IndexAvg Cap Rate Price/SF Cap Rate
2023 -- - -- 148- $48.99 8.8%
2022 -- - -- 146- $48.28 8.8%
2021 -- - -- 144- $47.57 8.8%
2020 -- - -- 142- $47.02 8.7%
2019 -- - -- 140- $46.08 8.6%
YTD $191.3 M126 2.3% $37.93$1,989,332 1387.4% $45.58 8.5%
2018 $448.1 M292 5.5% $39.39$2,082,719 1378.4% $45.24 8.5%
2017 $388.6 M272 4.7% $39.31$1,880,097 1279.2% $42.00 8.5%
2016 $396.4 M271 4.6% $36.69$1,650,641 1228.1% $40.28 8.6%
2015 $483.4 M302 6.0% $34.86$1,832,863 1177.8% $38.54 8.7%
2014 $312.7 M230 3.9% $34.11$1,501,211 1118.4% $36.65 8.9%
2013 $288.5 M233 4.0% $30.73$1,340,757 1058.9% $34.63 9.0%
2012 $217.6 M250 3.5% $29.61$1,076,831 10210.4% $33.55 9.2%
2011 $208.0 M170 2.7% $31.89$1,329,075 977.8% $32.09 9.4%
2010 $112.4 M137 1.5% $31.44$863,184 9410.9% $31.18 9.7%
2009 $144.9 M145 2.4% $25.59$1,041,218 928.1% $30.23 10.0%
2008 $239.4 M189 2.7% $37.77$1,314,473 1008.3% $33.01 9.6%
(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period.
(2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.
SPECIALIZED INDUSTRIAL SALES
Completed Transactions (1)
Turnover Avg Price/SFDeals VolumeYear
Market Pricing Trends (2)
Avg Price Price IndexAvg Cap Rate Price/SF Cap Rate
2023 -- - -- 154- $48.24 8.7%
2022 -- - -- 151- $47.47 8.7%
2021 -- - -- 149- $46.66 8.7%
2020 -- - -- 146- $45.91 8.6%
2019 -- - -- 142- $44.57 8.5%
YTD $68.3 M45 2.1% $32.43$2,009,863 139- $43.53 8.5%
2018 $151.0 M117 4.3% $34.15$1,677,984 1378.5% $43.09 8.4%
2017 $150.8 M111 4.0% $39.58$1,816,481 1278.9% $39.85 8.5%
2016 $150.7 M113 3.9% $34.59$1,489,282 1219.6% $38.05 8.5%
2015 $209.8 M116 5.6% $34.75$1,924,866 1167.1% $36.40 8.6%
2014 $113.2 M83 2.7% $37.40$1,490,056 1118.2% $34.69 8.8%
2013 $121.5 M91 3.7% $29.28$1,412,943 1048.9% $32.77 9.0%
2012 $90.0 M101 3.8% $22.42$1,056,796 10110.4% $31.76 9.1%
2011 $96.6 M81 3.2% $26.41$1,207,631 976.5% $30.40 9.4%
2010 $68.8 M62 2.1% $29.91$1,158,486 9410.6% $29.56 9.6%
2009 $76.5 M63 2.3% $29.74$1,233,423 929.9% $28.78 10.0%
2008 $88.5 M75 2.4% $35.16$1,246,156 1008.7% $31.36 9.5%
(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period.
(2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.
7/18/2019Copyrighted report licensed to Judson & Associates, S.C. - 981635.
Page 26
Sale TrendsMilwaukee Industrial
LOGISTICS SALES
Completed Transactions (1)
Turnover Avg Price/SFDeals VolumeYear
Market Pricing Trends (2)
Avg Price Price IndexAvg Cap Rate Price/SF Cap Rate
2023 -- - -- 148- $47.89 8.8%
2022 -- - -- 146- $47.26 8.8%
2021 -- - -- 144- $46.65 8.8%
2020 -- - -- 143- $46.22 8.7%
2019 -- - -- 140- $45.44 8.6%
YTD $107.8 M59 3.0% $43.38$2,395,670 1396.4% $45.09 8.5%
2018 $221.4 M114 7.1% $41.83$2,872,944 1397.6% $44.91 8.5%
2017 $179.8 M114 5.8% $40.36$2,038,844 1289.4% $41.44 8.5%
2016 $188.2 M113 6.2% $36.57$1,980,803 1238.1% $39.74 8.6%
2015 $231.7 M147 7.7% $35.89$1,880,770 1178.3% $37.94 8.7%
2014 $144.8 M104 5.5% $30.91$1,539,452 1118.7% $35.99 8.9%
2013 $129.1 M107 4.9% $30.39$1,288,767 1059.0% $33.99 9.1%
2012 $91.9 M110 3.3% $37.19$1,057,619 10210.0% $32.95 9.2%
2011 $97.5 M70 2.9% $38.58$1,543,455 978.3% $31.50 9.5%
2010 $30.1 M62 1.1% $32.73$508,287 94- $30.56 9.7%
2009 $52.4 M63 3.0% $19.59$870,390 918.2% $29.58 10.1%
2008 $96.9 M73 3.1% $36.87$1,365,258 1007.5% $32.41 9.6%
(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period.
(2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.
FLEX SALES
Completed Transactions (1)
Turnover Avg Price/SFDeals VolumeYear
Market Pricing Trends (2)
Avg Price Price IndexAvg Cap Rate Price/SF Cap Rate
2023 -- - -- 137- $53.60 9.0%
2022 -- - -- 135- $52.89 9.0%
2021 -- - -- 134- $52.26 9.0%
2020 -- - -- 133- $52.02 8.9%
2019 -- - -- 133- $51.90 8.8%
YTD $15.2 M22 1.2% $33.58$872,671 13510.9% $52.58 8.7%
2018 $75.7 M61 5.0% $45.60$1,573,946 1338.9% $52.16 8.6%
2017 $58.0 M47 4.2% $35.78$1,631,826 1268.6% $49.41 8.6%
2016 $57.6 M45 3.3% $44.16$1,308,182 1227.3% $47.86 8.6%
2015 $41.9 M39 3.8% $30.46$1,302,173 1186.0% $46.01 8.7%
2014 $54.6 M43 4.0% $37.60$1,428,923 1127.5% $43.76 8.9%
2013 $37.9 M35 2.7% $38.32$1,300,580 1068.6% $41.38 9.0%
2012 $35.7 M39 3.0% $41.34$1,188,029 10211.5% $40.04 9.2%
2011 $13.9 M19 1.1% $41.28$1,037,502 98- $38.26 9.4%
2010 $13.5 M13 0.9% $38.01$1,209,673 9511.2% $37.20 9.7%
2009 $16.0 M19 1.1% $38.38$943,159 926.0% $35.85 10.1%
2008 $54.0 M41 3.0% $45.25$1,345,592 1007.9% $39.07 9.6%
(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period.
(2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.
7/18/2019Copyrighted report licensed to Judson & Associates, S.C. - 981635.
Page 27