Thursday, November 13, 2008

REJournals.Com: Surviving the slump in Wisconsin

The commercial real estate market is no different than the residential real estate market. Like most investments, what goes up must come down. Many experts in the residential and commercial real estate markets felt that the downturn was inevitable.

Not only is the residential real estate market considered more stable here in Wisconsin and the Midwest compared to the West or East coast markets, but so is the commercial real estate market. Although retail has been down, other markets like the office, multi-family, and industrial sectors have been performing fairly well.


Construction of commercial real estate projects are happening right now in Wisconsin despite the status of the housing market and the economy.


Chicago-based HSA Commercial Real Estate recently began construction of industrial buildings in its new 90-acre business park in the Village of Mount Pleasant. In addition, Berghammer Construction Corporation of Butler is nearing completion of two industrial buildings in this park.


In the retail sector, The Shoppes at Fox River in Waukesha and Grafton Commons are nearing completion.


The Shoppes at Fox River, developed by Opus North, sits on 54 acres and will feature nearly 500,000 square feet of retail space. Target and Pick ‘n Save will anchor this newly-constructed shopping center.


Grafton Commons, developed by Continental Properties Company, will feature nearly 390,000 square feet of retail space among its seven buildings. Costco will anchor this new development.


The office market remains stable. The good news is that deals are still closing. The bad news is that these deals are taking longer to close. The financial markets are not only making deals difficult to close in the residential markets, but they are also affecting the commercial markets.


The Class-A office market in downtown Milwaukee continues to perform well despite the financial markets and the economy. In early 2007, the vacancy rate of Class-A office space was approximately 12 percent. In a recent analysis of Class-A buildings, the vacancy rate dropped to seven percent.


One newly-constructed mixed-use project that seems to be highlighted in every article and blog is downtown Milwaukee’s “The Brewery.” The Brewery is a large-scale, 20-acre development located at the former Pabst Brewery. Developed by Zilber Ltd, The Brewery will feature residential units and office and retail tenants. This month Inland Companies, AMB Development Group, and Albion Group Architects are all planning to move into The Brewery’s former boiler house building.


Dan Rafter, writer for REJournals.Com, describes the current state of the commercial real estate markets in Wisconsin and provides additional information about the Mount Pleasant business park, The Shoppes at Fox River, Grafton Commons, and The Brewery. Click here to read about the latest commercial developments>>>

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