210 likes | 285 Views
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
E N D
Milwaukee Office Market2010 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 • Class A Office • Submarkets - Downtown & along I-94 Corridor • Downtown Investment Activity
Vacancy Trends – Milwaukee Office Market (Includes Milwaukee, Waukesha, Ozaukee, Washington Counties)
Downtown Office By Class (A vs. B/C)As of Third Quarter 2010
Suburban Office By Class – 3Qtr 2010 Source: CoStar Property
Who Are the Buyers??? 3-yr1-yr Individuals 27.8% 41.2% Inst. Investors 30.6% 17.7%
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
Office Market Projection for 2011 • Vacancy – Stable • Rental Rates – Stable • New Construction – None • Cap Rates – Stable • Investment Activity – Increase
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