Certainty. That’s the word Dave Merrick, vice president and market manager for Irgens, uses when describing the Milwaukee commercial real estate market.
As Merrick says, there’s more certainty in the market today than there was last year or two years ago. Like many of the markets across the Midwest, commercial real estate sales, leases and new construction are all on the rise in Milwaukee.
And it’s a trend that Merrick says isn’t about to slow.
“We are definitely seeing the market pick up the pace,” Merrick said. “It is certainly a different market than it was two years ago. We are no longer pulling back, economy-wise. There is more certainty with where we are heading. Companies are getting more comfortable making real estate decisions.”
Merrick isn’t the only commercial real estate professional in the Milwaukee area who sees the market this way. There is plenty of activity today in Milwaukee, in all sectors. And it’s creating a positive vibe among the commercial real estate professionals who work in this city.
Certainly, the multi-family market in Milwaukee is thriving. The multi-family market remains hot across the country. But Milwaukee is also seeing plenty of activity in its industrial market, a market that, Merrick says, is hotter than the retail and office markets.
In fact, Milwaukee is seeing the return of spec building in its industrial market, definitely a positive sign.
“There is a lack of developable or ready to be developed land for the industrial market,” Merrick said. “That is helping push up demand a little bit. There is more of a flurry in the future on the industrial side of things. We are predicting a lot more activity in that sector in the future.”
Retail, too, is seeing more activity, Merrick said, though not as much as industrial. The big trend in retail today in the Milwaukee market is retrofitting. Former big box spaces are now being turned into new uses, especially in the city’s inner-ring suburbs.
“The days of putting retail on green fields after green fields are gone,” Merrick said. “We are not seeing that today.”
The office market is lagging behind industrial and retail. However, there is a shortage of large space — spaces in the 60,000- to 100,000-square-foot range — in the city now, Merrick said. That bodes well for the future of this sector. It might result in the development of a new office building or two in the city’s future.
Irgens itself might be bringing that new office building to the market. Merrick said that Irgens has plans for an 18-story 358,000-square-foot office tower for downtown Milwaukee, 833 East. To be located at 833 E. Michigan St., the project is already 45-percent pre-leased. This means that Irgens is close to being able to break ground on the project.
For Merrick, the possibility of the office tower is more evidence that the Milwaukee market is in the middle of a strong recovery.
“We are at that first point of the upturn in the real estate cycle,” Merrick said. “I think it is going to keep going up. I see more projects coming to the Milwaukee area in the future. Companies are becoming more confident in making real estate decisions. They are hiring more people. The industrial and office markets will certainly benefit from that. With the economy getting better, the retail sector will improve, too. On all three fronts, we will get better.”
