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Milwaukee Office Market 2010 Year in Review

Milwaukee Office Market 2010 Year in Review. Appraisal Institute – Wisconsin Chapter November 11, 2010. 2010 Office Market Overview. Leasing Activity Net Absorption Vacancy & Availability Investment Activity Capitalization Rates. Office Market – Bright Spots in 2010. No New Construction

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Milwaukee Office Market 2010 Year in Review

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  1. Milwaukee Office Market2010 Year in Review Appraisal Institute – Wisconsin Chapter November 11, 2010

  2. 2010 Office Market Overview • Leasing Activity • Net Absorption • Vacancy & Availability • Investment Activity • Capitalization Rates

  3. Office Market – Bright Spots in 2010 • No New Construction • Class A Office • Submarkets - Downtown & along I-94 Corridor • Downtown Investment Activity

  4. Leasing Activity – Milwaukee Office Market

  5. Vacancy Trends – Milwaukee Office Market (Includes Milwaukee, Waukesha, Ozaukee, Washington Counties)

  6. Downtown vs. Suburban Office – 3Qtr 2010

  7. Downtown Office By Class (A vs. B/C)As of Third Quarter 2010

  8. Suburban Office By Class – 3Qtr 2010 Source: CoStar Property

  9. Vacancy By Submarket – 3Qtr 2010

  10. Historical Vacancy Trend – Milwaukee Office

  11. Availability Rate TrendSource: CoStar Property

  12. Market Trends – Absorption, Deliveries, & Vacancy

  13. Office Sales Volume Trends

  14. Office Sales – Sale Price/SF Trend

  15. Who Are the Buyers??? 3-yr1-yr Individuals 27.8% 41.2% Inst. Investors 30.6% 17.7%

  16. National Cap Rate Trends – CBD & Suburban

  17. National Cap Rate Trends & Value Change • Observations: • All the growth in value from cap rate compression between 2000 and 2007 was lost in just 2-years (2007-2009) • Surveys suggest stabilization in office cap rates by First Quarter 2010 with a slight decrease in the 2nd and 3rd quarter of 2010

  18. Milwaukee Cap Rates

  19. Office Market Projection for 2011 • Vacancy – Stable • Rental Rates – Stable • New Construction – None • Cap Rates – Stable • Investment Activity – Increase

  20. Michael J. Tompkins Vice President The Nicholson Group LLC 555 S Industrial Drive, Suite 207 Hartland, WI 53029 262.369.5400 ext 23 262.369.5401 Fax 262.993.2092 Mobile mtompkins@nicholson-group.com Contact Information

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