Despite a lack of sales or new construction projects, the Milwaukee office market has maintained a steady level of activity this year. “We’re busier this year than we were last year. Whether it’s productive for the economy is debatable, but it is productive for brokers,” says Bill Bonifas, executive vice president with CB Richard Ellis’ Milwaukee office. Many of the deals Bonifas and other brokers in the city are working on are blend and extend deals, in which the landlord renews a tenant early and for a longer term in exchange for concessions, usually consisting of free or discounted rent. “Right now, the psychology is that an ounce of prevention is worth a pound of cure, so the smart owners are doing what they have to do to complete deals and keep their existing tenants,” Bonifas says. Tenants in Milwaukee are happy to sign these deals, since it provides them with savings today. Landlords are also content because they have tenants secured in their properties, which helps keep the asset stable and puts the landlord in a better position to refinance the property. The landlord may be giving up some rent, but the tradeoff is worth it. “It looks like …
Market Reports
At close of the first quarter of the year, the Southeastern Wisconsin retail vacancy rate totaled 10.4 percent, up 1.4 percent from a year ago. The growth in the greater Milwaukee retail vacancy rate was primarily driven by the closings of several large-format retailers over the last 6 months. Changes in the retail environment have caused a shift in the Southeastern Wisconsin retail real estate market. More retailers are looking to existing developments or vacant boxes to expand as the tide of new development wanes. There are several major retailers looking to retrofit existing stores rather than build new boxes. Despite the negative news and stores closures, the Southeastern Wisconsin market is still experiencing some significant retail activity: • Wal-Mart is expanding and/or remodeling several area stores to include more grocery items. These stores include Southgate, East Capitol Drive, Midtown, Brown Deer Road, Franklin and Delafield. The retail giant is also moving forward with plans for new stores in Muskego and Waukesha. A new Wal-Mart Supercenter and a Sam’s Club will open at Somers Market Center this summer in Somers, which is located in Kenosha County along Highway 31. • Target has opened two new stores at Prairie Ridge in …
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