By David Pudlosky and Patrick Savoie, JLL
Milwaukee remains a strong office market with leasing activity showing no sign of slowing. Post-pandemic, companies took a fresh look at their workplace strategies to adjust to hybrid working environments, and many rightsized their overall square footage while adding significant amenities and attractions that provide a rewarding office experience for returning workers.
Despite a smaller footprint, tenants are seeking updated, highly amenitized spaces in Class A buildings. While amenities have always been a focus for landlords, the buildings that stand out today are the ones that focus on quality amenities over quantity. For example, today’s tenant will likely not be as interested in a building lounge unless it has comfortable seating, a café, strong Wi-Fi and more. To be relevant to tenants, amenities must be high end and culture focused.
We’ve seen companies like Milwaukee Tool, Fiserv, Komatsu Mining Corp. and Northwestern Mutual invest in their downtown office spaces and make commitments to bring more employees downtown, and we expect this trend to continue. Building owners can learn from what Class A building landlords are doing to drive leasing activity, and learn how investing in quality, amenity-driven spaces will likely bring in new tenants and benefit the overall downtown economy.
These trends are bringing more people to downtown Milwaukee. As of May 2023, JLL research found that visits to the central business district were up 23 percent year-over-year. This is a promising sign for the area’s growth and future.
In this article, we will uncover what two of Milwaukee’s most desirable office buildings have done to create a work-live-play experience that drives high occupancy rates and exemplifies highly attractive office building environments.
Associated Bank River Center
Associated Bank River Center is a multi-tenant building at 111 E. Kilbourn Ave. The newly renovated tower is making a major impression on the Milwaukee downtown office community, as its amenities are well suited for today’s optimal employee experience. Following 100 East’s announcement to convert the office space to residential, a major tenant decided to move to the Associated Bank River Center and is expected to take up two floors. This company is not the only Milwaukee corporation looking for its own space in the building, as tenant interest continues to rise.
Beyond standard amenities like a food service operator, conference centers, fitness centers and new building mechanicals, the Associated Bank River Center draws in even more tenants by leveraging its premium location. The building is ideally positioned on the Milwaukee River, with direct access to the St. Kate Hotel and near Fiserv Forum, home of the Milwaukee Bucks. The building also boasts an atrium featuring fast-casual eats for lunch and a coffee shop. Furthermore, the building recently opened Vault, a one-of-a-kind cocktail lounge. This crown jewel amenity space features floor-to-ceiling views over the Milwaukee River and a three-season terrace. This extraordinary space, meticulously curated for an unforgettable experience, is open to the public, inviting all to indulge in its allure.
With its recent renovations, what sets the Associated Bank River Center apart is its exceptional aesthetic and overall ambiance. The atmosphere not only enhances the existing amenities but also fosters an engaging and inviting environment.
BMO Tower
BMO Tower, located at 790 N. Water St., also provides new, amenity-rich spaces and continues to sign new tenants. This Class A building, completed in 2019, showcases a thoughtful design that prioritizes employee satisfaction, incorporating cutting-edge building features tailored to enhance their overall experience. The building includes large and efficient floorplates, maximum daylighting and a state-of-the-art HVAC system to create a health-focused, sustainable environment. The building also features executive parking, a street-level café, outdoor plaza, retail banking and more.
Additionally, the BMO Tower takes full advantage of exceptional views, providing an impressive vantage point overlooking downtown Milwaukee, the Deer District, the surrounding area of the Fiserv Forum and views of Lake Michigan to the east.
Forecasting Milwaukee’s office activity through 2023 and beyond
Milwaukee is proving that office leasing activity maintains a positive trajectory. Throughout the remainder of 2023, tenants will likely continue to prioritize Class A space both within the downtown and suburban markets. In some cases, tenants will move out of larger Class B space and into smaller Class A space.
JLL research shows that by 2025, properties that incorporate a diverse roster of amenities will experience 12 percent higher demand from tenants compared with their commodity counterparts.
As companies continue to shape their workplace strategies and increase the use of office spaces, it becomes increasingly evident that office owners that invest in a live-work-play experience for their tenants will have the greatest potential for success throughout the remainder of the year and beyond.
David Pudlosky is a managing director and Patrick Savoie is a vice president with JLL. This article originally appeared in the November 2023 issue of Heartland Real Estate Business magazine.