Wisconsin Industrial Recovery Continues
- Jan 26, 2011
January 25, 2011
By Barbra Murray, Contributing Editor
In Brown Deer, Wis., a new lease agreement helps reinforce recovery of the greater Milwaukee industrial market. HSA Commercial Real Estate has added a 121,000 square-foot tenant to the roster at 9053 N. Deerwood Trail.
A national presort services firm signed a long-term lease agreement for most of the space at 9053 N. Deerwood, a 154,400-square-foot warehouse/distribution facility within the 40-acre Brown Deer Business Park, which is owned by HSA in a joint venture with Morgan Realty Partners. The 10-building industrial and office complex sits approximately 10 miles north of downtown Milwaukee.
Inland Companies marketed the space on behalf of HSA and represented the company in the lease transaction. Financial details of the deal have not been publicly disclosed; however, Inland provides space at 9053 N. Deerwood for $3.50 per square-foot, triple net.
More lease agreements like the one that just closed at Brown Deer Business Park are on the horizon in Southeastern Wisconsin, local industry experts contend. “We feel the vacancy rate will continue to decline moving into 2011,” Brian Parrish, vice president with commercial real estate services firm The Dickman Cos., told CPE. “Landlords will continue to offer some of the aggressive packages they offered in 2010, but as the year progresses, packages may not be as aggressive.”
Industrial market statistics have clearly improved in Southeastern Wisconsin, an eight-county area that includes Milwaukee County. “The average vacancy rate declined from 8.9 percent in 2009 to 8.6 percent in 2010, and there’s been a lot of positive absorption of space in the region; approximately 1.9 million square feet last year,” Parrish said. “Also, there was no speculative development in 2010 and there isn’t any scheduled for 2011, so all of this will help get the available square footage leased up.”