Metro Milwaukee Industrial Market Review RETAIL OFFICE INDUSTRIAL LAND INVESTMENT NAI MLG COMMERCIAL 414 347 9400 757 N BROADWAY, SUITE 700, MILWAUKEE, WI 53202 MLGCOMMERCIAL.COM
Metro Milwaukee Industrial Market Report Year-over-Year Changes 3Q17 vs. 3Q18 NET ABSORPTION AVAILABILITY 2Q18 vs. 3Q18 AVAILABILITY VACANCY Quarter-over-Quarter Changes NET ABSORPTION VACANCY ASKING S ASKING S Market Notes *Since the 2008-09 economic downturn, the Milwaukee market has shown continued growth and demand for quality product. This past quarter, the market showed 1.3 million SF of negative absorption, making it only the 2nd quarter in the past 28 to show negative absorption. However, this number is deceptive as the majority of the quarterly negative absorption can be attributed to JCPenney leaving a 2 million SF warehouse in Wauwatosa. The new availability has garnished interest for multiple parties and we expect it to be backfilled relatively soon. Also noteworthy is the fact there are over 20 projects currently under construction or planned with in the metro. Vacancy & Absorption 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 - (500,000) (1,000,000) (1,500,000) 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 8% 7% 6% 5% 4% 3% 2% 1% 0% Quarterly Absorption Vacancy Rate (%) Source: CoStar, Catylist, Esri & NAI MLG Commercial s proprietary data. www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 2
Milwaukee Metro Stats Significant Lease Transactions Property City Tenant Size SF Holy Hill Rd Germantown Briggs & Stratton 700,000 5211 S. 3rd St Milwaukee Ryder Integrated Logistics, Inc. 360,000 5201 International Dr Cudahy RR Donnelley 153,300 Significant Sale Transactions Snapshot Use / Inventory Availability Vacancy Quarterly 2018 Quarter (SF) Rate (%) Rate (%) Absorption Absorption Flex 43,273,636 6.6% 2.8% 52,511 140,757 Lt Ind 144,209,425 6.0% 3.1% 91,985 545,291 Whse/Dist 138,028,854 10.7% 6.5% (1,177,776) (322,521) 325,511,915 8.1% 4.5% (1,033,280) 363,527 2018 Q2 323,744,358 7.7% 3.7% 926,003 1,374,044 2018 Q1 322,915,529 7.7% 3.9% 448,041 4,249,907 2017 Q4 322,859,807 7.0% 4.2% 991,388 2,298,044 Property City Buyer Size SF Price 1100/1022 Milwaukee Ave South Milwaukee Reich Brothers, LLC 750,300 $13,275,000 700 W. Calumet Rd Milwaukee AGI Fabricators 181,692 $7,400,000 N31W22386/W22350 Green Rd Pewaukee Pam Joy Realty, Inc. 136,593 $7,050,000 Significant Q3 Absorption Changes Positive Absorption Changes Negative Absorption Changes Property Absorption Property Absorption 4620 W Oakwood Park Dr 162,861 11800 W Burleigh St* (1,995,825) 5201 International Dr 153,000 8778 100th St (121,052) 8501 W Brown Deer Rd 118,461 7300 N 60th St (98,927) 525 W Marquette Ave 112,144 N8W22270 Johnson Dr (80,000) 4503-4699 W Greenfield Ave 90,502 5235-5325 International Dr (73,598) 500 N Spring St 82,241 N60W16590 Kohler Ln (62,430) 605-705 N Commerce St 81,363 12100 W Park Pl (56,293) 3282 N 35th St 75,000 130-150 W Edgerton Ave (54,632) Source: CoStar, Catylist & NAI MLG Commercial s proprietary data. www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 3
Metro Milwaukee 3.0% 92,358 (38,414) Ozaukee Vacancy (%) Q3 Absorption 2018 Absorption 3.6% 97,104 176,895 Washington Vacancy (%) Q3 Absorption 2018 Absorption 1.3% 74,459 80,597 Milwaukee Vacancy (%) Q3 Absorption 2018 Absorption 7.1% (1,211,364) (1,127,424) Waukesha Vacancy (%) Q3 Absorption 2018 Absorption 2.0% (171,446) 321,828 Central Racine Vacancy (%) Q3 Absorption 2018 Absorption 5.5% 118,366 266,727 South Walworth Vacancy (%) Q3 Absorption 2018 Absorption 2.8% 17,570 89,926 South Kenosha Vacancy (%) Q3 Absorption 2018 Absorption 3.6% (50,327) 516,564 Central North North North Sheboygan Vacancy (%) Q3 Absorption 2018 Absorption South Industrial Market Report Source: CoStar, Catylist, Esri & NAI MLG Commercial s proprietary data. www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 4
Milwaukee Metro Stats Central Central South South North North North South Submarket Milwaukee Inventory (SF) Available (SF) Available (%) Vacancy (SF) Vacancy (%) Qtrly Absorption (SF) 2018 Absorption (SF) Flex 21,398,403 1,419,861 6.6% 644,726 3.0% (42,049) 16,648 Lt Ind 55,106,276 4,348,026 7.9% 2,904,055 5.3% 165,321 245,347 Whse/Dist 47,531,039 7,257,036 15.3% 5,231,557 11.0% (1,334,636) (1,389,419) Waukesha Total 124,035,718 13,024,923 10.5% 8,780,338 7.1% (1,211,364) (1,127,424) Flex 9,690,599 456,992 4.7% 208,194 2.1% (28) 86,250 Lt Ind 37,643,056 1,268,001 3.4% 522,480 1.4% (200,838) 2,032 Whse/Dist 28,841,576 1,679,890 5.8% 759,063 2.6% 29,420 233,546 Racine Total 76,175,231 3,404,883 4.5% 1,489,737 2.0% (171,446) 321,828 Flex 2,321,496 148,725 6.4% 86,065 3.7% 11,305 (11,795) Lt Ind 17,195,734 1,223,116 7.1% 438,917 2.6% 32,061 89,424 Whse/Dist 11,971,291 2,060,071 17.2% 1,214,072 10.1% 75,000 189,098 Kenosha Total 31,488,521 3,431,912 10.9% 1,739,054 5.5% 118,366 266,727 Flex 977,165 170,331 17.4% 78,907 8.1% 1,324 (23,176) Lt Ind 6,678,533 434,128 6.5% 2,000 0.0% - 84,300 Whse/Dist 25,745,528 2,665,202 10.4% 1,132,443 4.4% (51,651) 455,440 Washington Total 33,401,226 3,269,661 9.8% 1,213,350 3.6% (50,327) 516,564 Flex 3,994,107 247,532 6.2% 82,429 2.1% 88,346 103,388 Lt Ind 8,609,969 169,430 2.0% 59,100 0.7% - (49,800) Whse/Dist 7,363,583 192,317 2.6% 113,209 1.5% (13,887) 27,009 Sheboygan Total 19,967,659 609,279 3.1% 254,738 1.3% 74,459 80,597 Flex 525,357 16,250 3.1% 16,250 3.1% (9,250) 160 Lt Ind 4,643,831 61,464 1.3% 25,464 0.5% 13,000 1,536 Whse/Dist 10,397,942 624,021 6.0% 447,557 4.3% 88,608 36,718 Ozaukee Total 15,567,130 701,735 4.5% 489,271 3.1% 92,358 38,414 Flex 3,458,680 354,841 10.3% 92,782 2.7% 2,863 (21,157) Lt Ind 6,168,048 632,041 10.2% 341,941 5.5% 94,241 193,252 Whse/Dist 2,584,329 113,031 4.4% - 0.0% - 4,800 Walworth Current Stats Total 12,211,057 1,099,913 9.0% 434,723 3.6% 97,104 176,895 Flex 907,829 47,278 5.2% 10,000 1.1% - (9,561) Lt Ind 8,163,978 483,525 5.9% 248,540 3.0% (11,800) (20,800) Whse/Dist 3,593,566 178,487 5.0% 100,587 2.8% 29,370 120,287 Total 12,665,373 709,290 5.6% 359,127 2.8% 17,570 89,926 Grand Total 325,511,915 26,251,596 8.1% 14,760,338 4.5% (1,033,280) 363,527 Source: CoStar, Catylist & NAI MLG Commercial s proprietary data. www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 5
Metro Milwaukee Industrial Market Report Historic Vacancy Millions 24 22 20 18 16 14 12 10 8% 7% 6% 5% 4% 3% 2% 1% 0% Regional Vacancy Vacant SF 3 yr. Trailing Average 1 yr. Trailing Average 12% 10% 8% 6% 4% 2% 2008 Q3 2008 Q4 2009 Q1 2009 Q2 2009 Q3 2009 Q4 2010 Q1 2010 Q2 2010 Q3 2010 Q4 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 0% North Central South Source: CoStar, Catylist, Esri & NAI MLG Commercial s proprietary data. www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 6
Trends Historic Absorption 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 - (500,000) (1,000,000) (1,500,000) 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% -0.5% -1.0% -1.5% Q Absorption SF 1 yr. Trailing Average Growth Regional Absorption 3.0 2.5 2.0 1.5 Millions 1.0 0.5 0.0-0.5-1.0-1.5-2.0 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 North Central South Source: CoStar, Catylist & NAI MLG Commercial s proprietary data. www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 7
Metro Milwaukee Milwaukee County FLEX LIGHT IND WAREHOUSE TOTAL INVENTORY (SF) 21,398,403 55,106,276 47,531,039 124,035,718 AVAILABILITY (SF) 1,419,861 4,348,026 7,257,036 13,024,923 AVAILABILITY (%) 6.6% 7.9% 15.3% 10.5% VACANCY (SF) 644,726 2,904,055 5,231,557 8,780,338 VACANCY (%) 3.0% 5.3% 11.0% 7.1% Q3 ABSORPTION (SF) (42,049) 165,321 (1,334,636) (1,211,364) 2018 ABSORPTION (SF) 16,648 245,347 (1,389,419) (1,127,424) Year-over-Year Changes 3Q17 vs. 3Q18 # People 947,960 # Businesses 28,941 # Employees 511,710 Unemployment Rate 5.9% NET ABSORPTION AVAILABILITY VACANCY ASKING S Vacancy & Absorption 1,000,000 500,000 - (500,000) (1,000,000) (1,500,000) 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% Quarterly Absorption Vacancy Rate (%) Source: CoStar, Catylist, Esri & NAI MLG Commercial s proprietary data. www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 8
Industrial 2018 Availability Milwaukee County Available Space Industrial Building Source: CoStar, Catylist & NAI MLG Commercial s proprietary data. www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 9
Metro Milwaukee Waukesha County Year-over-Year Changes 3Q17 vs. 3Q18 FLEX LIGHT IND WAREHOUSE TOTAL INVENTORY (SF) 9,690,599 37,643,056 28,841,576 76,175,231 AVAILABILITY (SF) 456,992 1,268,001 1,679,890 3,404,883 AVAILABILITY (%) 4.7% 3.4% 5.8% 4.5% VACANCY (SF) 208,194 522,480 759,063 1,489,737 VACANCY (%) 2.1% 1.4% 2.6% 2.0% Q3 ABSORPTION (SF) (28) (200,838) 29,420 (171,446) 2018 ABSORPTION (SF) 86,250 2,032 233,546 321,828 # People 402,229 # Businesses 16,802 # Employees 274,596 Unemployment Rate 2.6% NET ABSORPTION AVAILABILITY VACANCY ASKING S Vacancy & Absorption 800,000 600,000 400,000 200,000 - (200,000) (400,000) (600,000) (800,000) 5% 4% 3% 2% 1% 0% Quarterly Absorption Vacancy Rate (%) Source: CoStar, Catylist, Esri & NAI MLG Commercial s proprietary data. www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 10
Industrial 2018 Availability Waukesha County Available Space Industrial Building Source: CoStar, Catylist & NAI MLG Commercial s proprietary data. www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 11
Metro Milwaukee Racine County Year-over-Year Changes 3Q17 vs. 3Q18 FLEX LIGHT IND WAREHOUSE TOTAL INVENTORY (SF) 2,321,496 17,195,734 11,971,291 31,488,521 AVAILABILITY (SF) 148,725 1,223,116 2,060,071 3,431,912 AVAILABILITY (%) 6.4% 7.1% 17.2% 10.9% VACANCY (SF) 86,065 438,917 1,214,072 1,739,054 VACANCY (%) 3.7% 2.6% 10.1% 5.5% Q3 ABSORPTION (SF) 11,305 32,061 75,000 118,366 2018 ABSORPTION (SF) (11,795) 89,424 189,098 266,727 # People 197,399 # Businesses 6,018 # Employees 89,139 Unemployment Rate 5.6% NET ABSORPTION AVAILABILITY VACANCY ASKING S Vacancy & Absorption 600,000 500,000 400,000 300,000 200,000 100,000 - (100,000) (200,000) (300,000) 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 Quarterly Absorption Vacancy Rate (%) 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% Source: CoStar, Catylist, Esri & NAI MLG Commercial s proprietary data. www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 12
Industrial 2018 Availability Racine County Available Space Industrial Building Source: CoStar, Catylist & NAI MLG Commercial s proprietary data. www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 13
Metro Milwaukee Kenosha County Year-over-Year Changes 3Q17 vs. 3Q18 FLEX LIGHT IND WAREHOUSE TOTAL INVENTORY (SF) 977,165 6,678,533 25,745,528 33,401,226 AVAILABILITY (SF) 170,331 434,128 2,665,202 3,269,661 AVAILABILITY (%) 17.4% 6.5% 10.4% 9.8% VACANCY (SF) 78,907 2,000 1,132,443 1,213,350 VACANCY (%) 8.1% 0.0% 4.4% 3.6% Q3 ABSORPTION (SF) 1,324 0 (51,651) (50,327) 2018 ABSORPTION (SF) (23,176) 84,300 455,440 516,564 # People 170,454 # Businesses 4,535 # Employees 68,272 Unemployment Rate 7.0% NET ABSORPTION AVAILABILITY VACANCY ASKING S Vacancy & Absorption 1,800,000 10% 1,600,000 9% 1,400,000 8% 1,200,000 7% 1,000,000 6% 800,000 5% 600,000 4% 400,000 3% 200,000 2% - 1% (200,000) 0% 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 Quarterly Absorption Vacancy Rate (%) Source: CoStar, Catylist, Esri & NAI MLG Commercial s proprietary data. www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 14
Industrial 2018 Availability Kenosha County Available Space Industrial Building Source: CoStar, Catylist & NAI MLG Commercial s proprietary data. www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 15
Metro Milwaukee Washington County Year-over-Year Changes 3Q17 vs. 3Q18 FLEX LIGHT IND WAREHOUSE TOTAL INVENTORY (SF) 3,994,107 8,609,969 7,363,583 19,967,659 AVAILABILITY (SF) 247,532 169,430 192,317 609,279 AVAILABILITY (%) 6.2% 2.0% 2.6% 3.1% VACANCY (SF) 82,429 59,100 113,209 254,738 VACANCY (%) 2.1% 0.7% 1.5% 1.3% Q3 ABSORPTION (SF) 88,346 0 (13,887) 74,459 2018 ABSORPTION (SF) 103,388 (49,800) 27,009 80,597 # People 135,837 # Businesses 4,692 # Employees 66,314 Unemployment Rate 2.8% NET ABSORPTION AVAILABILITY VACANCY ASKING S Vacancy & Absorption 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 - (50,000) (100,000) 8% 7% 6% 5% 4% 3% 2% 1% 0% Quarterly Absorption Vacancy Rate (%) Source: CoStar, Catylist, Esri & NAI MLG Commercial s proprietary data. www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 16
Industrial 2018 Availability Washington County Available Space Industrial Building Source: CoStar, Catylist & NAI MLG Commercial s proprietary data. www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 17
Metro Milwaukee Sheboygan County Year-over-Year Changes 3Q17 vs. 3Q18 FLEX LIGHT IND WAREHOUSE TOTAL INVENTORY (SF) 525,357 4,643,831 10,397,942 15,567,130 AVAILABILITY (SF) 16,250 61,464 624,021 701,735 AVAILABILITY (%) 3.1% 1.3% 6.0% 4.5% VACANCY (SF) 16,250 25,464 447,557 489,271 VACANCY (%) 3.1% 0.5% 4.3% 3.1% Q3 ABSORPTION (SF) (9,250) 13,000 88,608 92,358 2018 ABSORPTION (SF) 160 1,536 36,718 38,414 # People 116,309 # Businesses 4,281 # Employees 68,007 Unemployment Rate 3.7% NET ABSORPTION 500,000 400,000 300,000 200,000 100,000 - (100,000) AVAILABILITY VACANCY ASKING S Vacancy & Absorption 9% 8% 7% 6% 5% 4% 3% 2% 1% (200,000) 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 Quarterly Absorption Vacancy Rate (%) 0% Source: CoStar, Catylist, Esri & NAI MLG Commercial s proprietary data. www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 18
Industrial 2018 Availability Sheboygan County Available Space Industrial Building Source: CoStar, Catylist & NAI MLG Commercial s proprietary data. www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 19
Metro Milwaukee Ozaukee County FLEX LIGHT IND WAREHOUSE TOTAL INVENTORY (SF) 3,458,680 6,168,048 2,584,329 12,211,057 # People 88,799 AVAILABILITY (SF) 354,841 632,041 113,031 1,099,913 AVAILABILITY (%) 10.3% 10.2% 4.4% 9.0% VACANCY (SF) 92,782 341,941 0 434,723 VACANCY (%) 2.7% 5.5% 0.0% 3.6% Q3 ABSORPTION (SF) 2,863 94,241 0 97,104 2018 ABSORPTION (SF) (21,157) 193,252 4,800 176,895 Year-over-Year Changes 3Q17 vs. 3Q18 # Businesses 3,775 # Employees 49,534 Unemployment Rate 3.5% NET ABSORPTION 350,000 300,000 250,000 200,000 150,000 100,000 50,000 - (50,000) (100,000) (150,000) 2012 Q1 2012 Q2 AVAILABILITY 2012 Q3 2012 Q4 2013 Q1 2013 Q2 2013 Q3 VACANCY 2013 Q4 2014 Q1 2014 Q2 2014 Q3 ASKING S Vacancy & Absorption 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 14% 13% 12% 11% 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% Quarterly Absorption Vacancy Rate (%) Source: CoStar, Catylist, Esri & NAI MLG Commercial s proprietary data. www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 20
Industrial 2018 Availability Ozaukee County Available Space Industrial Building Source: CoStar, Catylist & NAI MLG Commercial s proprietary data. www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 21
Metro Milwaukee Walworth County Year-over-Year Changes 3Q17 vs. 3Q18 FLEX LIGHT IND WAREHOUSE TOTAL INVENTORY (SF) 907,829 8,163,978 3,593,566 12,665,373 AVAILABILITY (SF) 47,278 483,525 178,487 709,290 AVAILABILITY (%) 5.2% 5.9% 5.0% 5.6% VACANCY (SF) 10,000 248,540 100,587 359,127 VACANCY (%) 1.1% 3.0% 2.8% 2.8% Q3 ABSORPTION (SF) 0 (11,800) 29,370 17,570 2018 ABSORPTION (SF) (9,561) (20,800) 120,287 89,926 # People 103,235 # Businesses 4,136 # Employees 50,310 Unemployment Rate 2.8% NET ABSORPTION 500,000 400,000 300,000 200,000 100,000 - (100,000) (200,000) AVAILABILITY VACANCY ASKING S Vacancy & Absorption 6% 5% 4% 3% 2% 1% (300,000) 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 Quarterly Absorption Vacancy Rate (%) 0% Source: CoStar, Catylist, Esri & NAI MLG Commercial s proprietary data. www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 22
Industrial 2018 Availability Walworth County Available Space Industrial Building Source: CoStar, Catylist & NAI MLG Commercial s proprietary data. www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 23
Metro Milwaukee Industrial Market Report Methodology, Definitions & Submarket Map Methodology: The report includes all industrial properties larger than 10,000 SF within the 8 county Milwaukee metro. Excluded from the report are government owned buildings and those buildings considered special use industrial. For reporting purposes, incubator space is included within Flex; bulk warehouse, truck terminals, warehouse freezer space is included within Warehouse Distribution; light industrial is included under Manufacturing. Inventory: The total square footage of a building that can be occupied. Available Rate: A measurement expressed as a percentage of the total amount of available space divided by the total amount of existing inventory. Vacancy Rate: A measurement expressed as a percentage of the total amount of vacant space divided by the total amount of existing inventory. Net Absorption: The net change in occupied space over a given period of time. Unless noted, all net absorption figures include both direct and sublease space. Past Year Trailing Absorption %: The sum of the past four quarters net absorption divided by the current inventory. Sources used Data: CoStar, Catylist, Esri, JSonline/USA Today, Milwaukee Business Journal, BizTimes Media, internal market knowledge. Source: CoStar, Xceligent & NAI MLG Commercial s proprietary data. www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 24
NAI MLG Commercial Industrial Team Our Team Barry Chavin, SIOR Principal t (414) 395-4676 m (414) 254-9438 bsc@mlgcommercial.com Stephen Provancher Principal t (414) 395-4689 m (414) 271-4440 sp@mlgcommercial.com Vytau Barcas Vice President t (414) 347-9400 m (262) 818-5660 vbarcas@mlgcommercial.com Anthony Bareta Senior Vice President t (414) 395-4675 m (414) 254-7487 tbareta@mlgcommercial.com Brett Garceau Senior Vice President t (414) 395-4677 m (262) 501-8319 bgarceau@mlgcommercial.com Adam Matson, SIOR Senior Vice President t (414) 395-4686 m (414) 613-6096 amatson@mlgcommercial.com Curt Pitzen Senior Vice President t (414) 395-4688 m (262) 687-1433 cpitzen@mlgcommercial.com Travis Tiede Senior Vice President t (414) 395-4682 m (920) 475-8135 ttiede@mlgcommercial.com Mitchell Starczynski Senior Vice President t (414) 395-4692 m (262) 709-6043 mstarczynski@mlgcommercial.com Kris Kucharski Sales Associate t (414) 908-9156 m (262) 853-3473 kak@mlgcommercial.com Patrick Hanrahan Sales Associate t (414) 908-9159 m (847) 431-5481 pgh@mlgcommercial.com Kris Kucharski Sales Associate t (414) 908-9156 m (262) 853-3473 kak@mlgcommercial.com www.mlgcommercial.com Milwaukee, Wisconsin 414 347 9400 Page 25
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