The Milwaukee metropolitan office market saw 41,067 square feet of positive absorption in the third quarter, according to the latest research from Colliers. And while that’s down slightly from the second quarter, it’s a big improvement from a year earlier.
How big? In the third quarter of 2024, the metropolitan Milwaukee office market notched negative 292,485 square feet of absorption. The positive absorption in the third quarter this year, then, is a good sign.
In the second quarter of this year, the Milwaukee-area office market saw 49,181 square feet of positive absorption, according to Colliers. That’s nearly the same as what the market experienced in the third quarter.
The vacancy rate in the market stood at 18.8%, the same as in the second quarter. That rate was down from a vacancy rate of 19.1% in the third quarter in 2024, according to Colliers.
Part of the reason for the steady vacancy rate might be the lack of new supply. Colliers said that no new office space was added to the Milwaukee market in the third quarter, same as in the second. A year ago? Developers also added no new office space to the market. Colliers reported, too, that there is no new office space currently under construction in the Milwaukee area.
Through the first three quarters of 2025, the Milwaukee-area office market has recorded 85,054 square feet of positive absorption, according to Colliers’ research.
Overall asking lease rates remained steady, too, with Colliers reporting that this number stood at $22.63 a square foot in the third quarter of this year, down slightly from $22.84 a square foot in the second quarter. A year ago, overall asking lease rates were $21.98 a square foot.
The flight to quality remains real here, too. Colliers reported that Class-A office properties in the Milwaukee area accounted for 75,415 square feet of absorption in the third quarter, compared to 34,348 square feet of negative absorption in Class-B and -C properties.
During the past 12 months, Class-A properties have absorbed 102,205 square feet. During this same time, Class-B and -C office properties accounted for 131,755 square feet of negative absorption.
Vacancy rates are lower in Class-A properties, too. Colliers said that the average vacancy rate for Milwaukee-area Class-A office properties fell to 16.6% in the third quarter. This rate for Class-B and Class-C properties hit 20.4% during the quarter.
