milwaukee office market overview

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MILWAUKEE OFFICE MARKET OVERVIEWJim CavanaughDecember 2, 2013

2

METRO MILWAUKEE OFFICE MARKETVacancy Rate

2010

2011

2012

2013

10.0%

11.0%

12.0%

13.0%

14.0%

15.0%

16.0%

17.0%

18.0%

19.0%

20.0%

Four-Year Period

Class A Vacancy RateClass B Vacancy Rate

Vac

ancy

Rat

e

Q4

12

Q1

Q2

Q3

10.0%

11.0%

12.0%

13.0%

14.0%

15.0%

16.0%

17.0%

18.0%

2013

Vac

ancy

Rat

e

Q3 2013 Class A StatisticsVacancy Rate 12.4%YTD Absorption 39,815

Q3 2013 Class B StatisticsVacancy Rate 16.8%YTD Absorption 45,505

3

Class A Asking Lease Rates (Gross)

Period RateQ3 2013 $20.75

METRO MILWAUKEE OFFICE MARKETAverage Asking Lease Rate (Gross)

2013

2012

2011

2010

$14

$15

$16

$17

$18

$19

$20

$21

$22

Four-Year Period Class A Avg. Asking Lse. Rate (G)Class B Avg. Asking Lse. Rate (G)

Avg

. Ask

ing

Lse.

Rat

e (G

)

Q4

12

Q1

Q2

Q3

$14

$15

$16

$17

$18

$19

$20

$21

$222013

Avg

. Ask

ing

Lse.

Rat

e (G

)

Class B Asking Lease Rates (Gross)

Period RateQ3 2013 $16.87

4


DOWNTOWN EASTSubmarket Statistics

2010

2011

2012

2013

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

Four-Year Period

Vac

ancy

Rat

e

Recent Lease Transactions US Bank

• 615 E Michigan St• 110,636 SF• Renewal

Michael Best & Friedrich• 100 E Wisconsin Ave• 89,725 SF• RenewalQ

4 12

Q1

Q2

Q3

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%2013


Vac

ancy

Rat

e


5

Q3 2013 Class A StatisticsVacancy Rate 17.8%YTD Absorption (10,253)

DOWNTOWN WESTSubmarket Statistics

2010

2011

2012

2013

14.0%

16.0%

18.0%

20.0%

22.0%

24.0%

26.0%

28.0%

Four-Year Period

Vac

ancy

Rat

e

Recent Lease Transactions UMB

• Schlitz Park• 88,000 SF• Relocation

CapTel, Inc.• 310 W Wisconsin Ave• 37,864 SF• RenewalQ

4 12

Q1

Q2

Q3

14.0%

15.0%

16.0%

17.0%

18.0%

19.0%

20.0%

21.0%

22.0%

23.0%

24.0%

2013Class A Vacancy RateClass B Vacancy Rate

Vac

ancy

Rat

e


7


MILWAUKEE NORTH SHORESubmarket Statistics

2010

2011

2012

2013

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

22.0%

24.0%

26.0%

28.0%

Four-Year Period

Vac

ancy

Rat

e

Recent Lease Transactions Mortgagebot

• 12080 N Corporate Pkwy• 36,096 SF• Relocation

Vestica Healthcare, LLC• 1000 W Donges Bay Rd• 20,000 SF• Relocation / Expansion

Q4

12

Q1

Q2

Q3

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

22.0%

24.0%

2013 Class A Vacancy RateClass B Vacancy Rate

Vac

ancy

Rat

e


8

Q3 2013 Class B StatisticsVacancy Rate 22.8%YTD Absorption (410)

MILWAUKEE NORTHWESTSubmarket Statistics

2010

2011

2012

2013

10.0%

14.0%

18.0%

22.0%

26.0%

30.0%

34.0%

38.0%

42.0%

Four-Year Period

Vac

ancy

Rat

e

Recent Lease Transactions HNTB Corporation

• 11414 W Park Place• 26,451 SF• Renewal

Kohl’s ???

Q4

12

Q1

Q2

Q3

12.0%

14.0%

16.0%

18.0%

20.0%

22.0%

24.0%

26.0%


Vac

ancy

Rat

e


9

WEST ALLISSubmarket Statistics

2010

2011

2012

2013

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

22.0%

24.0%

Four-Year Period

Vac

ancy

Rat

e

Recent Lease Transactions Columbia St. Mary’s

• 801 S 70th St• 33,670 SF• Renewal

Rogers Memorial Hospital• 2448 S 102nd St• 12,000 SF• New Location

Q4

12

Q1

Q2

Q3

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

22.0%2013 Class B Vacancy Rate

Vac

ancy

Rat

e

Q3 2013 Class B StatisticsVacancy Rate 18.3%YTD Absorption (133,596)

10


MAYFAIR / WAUWATOSASubmarket Statistics

2010

2011

2012

2013

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

22.0%

24.0%

Four-Year Period

Vac

ancy

Rat

e

Recent Lease Transactions Zywave

• 10700 Research Dr• 24,155 SF• Expansion

Vitas Healthcare Corporation of Illinois• 2675 N Mayfair Rd• 11,203 SF• RenewalQ

4 12

Q1

Q2

Q3

0%

4.0%

8.0%

12.0%

16.0%

20.0%

24.0%2013


Vac

ancy

Rat

e


11

Q3 2013 Class B StatisticsVacancy Rate 16.4%YTD Absorption (9,874)

BROOKFIELDSubmarket Statistics

2010

2011

2012

2013

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

22.0%

24.0%

Four-Year Period

Vac

ancy

Rat

e

Recent Lease Transactions Milliman

• 15800 W Bluemound Rd• 78,024 SF• Renewal / Expansion

Fiserv, Inc.• 275 N Corporate Dr• 33,575 SF• RenewalQ

4 12

Q1

Q2

Q3

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

22.0%

24.0%2013 Class A Vacancy Rate

Class B Vacancy Rate

Vac

ancy

Rat

e


12


WAUKESHA / PEWAUKEESubmarket Statistics

2010

2011

2012

2013

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

Four-Year Period

Vac

ancy

Rat

e

Recent Lease Transactions Humana

• N19 W24133 Riverwood Dr• 40,700 SF• Renewal

Medco Health Solutions• N19 W23130 Riverwood Dr• 29,704 SF• RenewalQ

4 12

Q1

Q2

Q3

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%


Vac

ancy

Rat

e


13

2013 OVERVIEWWhat Works

Office Trends

• Open office concept

• Glass and natural light

• Common meeting rooms

• Larger conference rooms

• Coffee bar and lunch rooms

• Flex schedules

• Shared work spaces

14

2013 OVERVIEWWhat Works

Common Elements to Successful Projects

• Involved Ownership

• Amenities• Fitness Centers

• WI-FI

• Food

• LEED

• Valet/Concierge Services

• Corporate Events

• Collaboration

• Focus on Improvements more than Rental Rate

T +1 414 274 1629F +1 414 273 [email protected]

For more information regarding this presentation please contact:JIM CAVANAUGH

milwaukee office market overview

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