Good news is rare in the office sector today. But in the Milwaukee market, at least, this sector got off to a good start in 2024.
That’s the positive news from JLL‘s first quarter 2024 Milwaukee office market report released this April.
According to JLL, the Milwaukee office market recorded more than 80,000 square feet of positive net absorption in the first quarter. This comes after a solid 2023 for Milwaukee’s office sector. JLL reported that last year marked the first full year of positive office absorption in the Milwaukee market since 2019.
In the first quarter, most of the positive absorption came in Milwaukee’s Central Business District, with nearly 80% of it occuring in the city’s downtown core. The Downtown West and Third Ward/Walker’s Point submarkets led the way when it came to positive office absorption.
It’s not surprising, given the market’s positive momentum during the past five quarters, that office vacancy rates are starting to fall in the Milwaukee market. JLL reported that the Class-A vacancy rate is down to 19%, falling from a high of 22.3% at the end of 2022.
This represents the lowest this vacancy rate has been since the end of 2020, when the Class-A office vacancy rate for the Milwaukee area stood at 18.1%.
JLL predicted that office vacancy rates in this market will continue to drop thanks in part to the steady leasing activity in Milwaukee’s CBD. An example of the demand for office space in Milwaukee’s urban core? Enerpac has announced that it will occupy 56,000 square feet in the ASQ Center.
Enerpac is joining other big-name companies such as Milwaukee Tool, Northwestern Mutual, Rite Hite and Fiserv that have either relocated to or expanded their presence in downtown Milwaukee.
