Southeastern Wisconsin's commercial real estate market continues to slowly improve, according to a new survey released Tuesday by the Commercial Association of Realtors Wisconsin and Xceligent.
The area's industrial market finished 2011 with a 7.6% vacancy rate, down from 8.5% at the end of 2010, the report says.
Meanwhile, the office market vacancy rate dropped from 21.4% to 20.5%.
The worst-performing office submarket was the west side of downtown Milwaukee, with a 32.5% vacancy rate, while downtown's east side led the pack, with a vacancy rate of 15.4%.
Southeastern Wisconsin's retail market finished the year with a 6.7% vacancy rate for properties with at least 30,000 square feet. That was down from 8.2% at the end of 2010.
However, the 2011 end-year rate increased to around 13% when including properties with at least 15,000 square feet, the report says. A 2010 end-year rate for that larger inventory wasn't immediately available.
"We remain cautiously optimistic based on these positive trends that we'll see continued transaction volume growth and greater demand in 2012," said Jim Villa, association president, in a statement. "The big unknown is how the global economy, job creation and political unrest will impact the progress we are currently seeing."
Also, Grubb & Ellis Co. released its 2012 National Real Estate Forecast, which predicts a year of slow but continued growth for all commercial real estate property sectors.
The forecast expects apartments to be the best-performing sector, followed by hotels, industrial, retail and office.
Source: http://www.jsonline.com/business/market-improvement-seen-b43lmga-136631153.html
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