The Milwaukee retail market remains a resilient one, with rental growth and stable demand providing opportunities for investors, according to Marcus & Millichap’s fourth quarter 2024 Retail Market Report.
And in even better news? Marcus & Millichap predicts that Milwaukee’s retail sector, despite some challenges, will remain strong in 2025. That’s because demand remains high for retail spaces in Milwaukee and its surrounding communities.
“The Milwaukee retail market is demonstrating stability, with positive employment trends and strong leasing activity supporting continued growth,” said Todd Lindblom, first vice president and regional manager at Marcus & Millichap, in a statement.
Key findings from the report include:
Positive Employment Trends: The Milwaukee metropolitan area added 4,000 jobs in 2024, signaling economic stability and a stronger labor market.
A Moderate Vacancy Increase: Retail vacancy rates are expected to rise by 0.3%, reaching 4.3% in 2025. Even with that small increase, this vacancy rate still reflects strong occupancy compared to historical trends.
Rental Rate Growth: Average asking rents rose to $15.02 per square foot in the fourth quarter of the year. That’s an increase of 4.3%, one driven by robust leasing activity.
Supply Challenges: The market is projected to lose 260,000 square feet of retail space because of limited new construction and selective redevelopment.
Steady Investment Climate: Despite supply challenges, average retail property prices remained stable, reflecting continued investor confidence in the market.
“These findings underscore the long-term value of Milwaukee’s retail assets for both local and national investors,” Lindblom said.
