Siegel-Gallagher | 700 North Water Street | Milwaukee, WI 53202 | 414.225.9700 | www.sg-re.

com

2010 Milwaukee Office Investor

Q2 RESEARCH REPORT
Milwaukee Office Inventory Inventory Growth Rates Comparison
36000000 0.12%

% CHANGE IN GROWTH RATE

34000000
0.10%
TOTAL SQUARE FEET

32000000
0.08% 1Q10
30000000 Milwaukee Inventory Vacant Stock
Milwaukee Inventory Completions 2Q10
28000000 Milwaukee Inventory Occupied Stock 0.06% YTD Avg
26000000
0.04%
24000000
22000000 0.02%

20000000
0.00%
2Q09 3Q09 4Q09 1Q10 2Q10 Milwaukee Midwest US
QUARTER (source REIS) GEOGRAPHY (source REIS)

Milwaukee Asking Rent Milwaukee Office Inventory

$18.85
36000000

$18.80 34000000
TOTAL SQUARE FEET

32000000
$18.75
QUARTER

30000000 Milwaukee Inventory Vacant Stock

$18.70 Milwaukee Inventory Completions
28000000 Milwaukee Inventory Occupied Stock

$18.65 26000000

$18.60 24000000
22000000
$18.55
2Q09 3Q09 4Q09 1Q10 2Q10 20000000
2Q09 3Q09 4Q09 1Q10 2Q10
ASKING RENT (source REIS) QUARTER (source REIS)

Points of Interest From Reis Milwaukee Net Office Absorption

• F irst quarter negative net absorption rate of 197,000 square feet 100000

pushes the vacancy rate to 18.9%, even with no new inventory. 50000
• Second quarter negative net absorption rate is projected to reach 0
19.5%, the higest mark ever recorded by Siegel-Gallagher and Reis.
SQUARE FEET

1Q09 2Q09 3Q09 4Q09 1Q10

-50000
• Aside from one 34,000 square foot office building under construction
in Brookfield, no new projects are in any stages of development. -100000

• Average rental rates have dropped lower than year-end rents of 1994, -150000
hovering around $18.64 psf, with an effective rate at $14.14 psf. -200000
• Rent drops are projected around 2.5% by the end of the
-250000
year. 2011 is expected to have minor positive gains.
• Some analysts see stability in 2010 however others are still wary to agree. -300000

QUARTER (source REIS)

YOUR OFFICE GROUP

Marianne Burish Shaun Dempsey John Dulmes Nicole Hawley Daniel Walsh
414-270-4109 414-270-4104 414-270-4132 414-270-4106 414-270-4112
mburish@sg-re.com sdempsey@sg-re.com jdulmes@sg-re.com nhawley@sg-re.com dwalsh@sg-re.com
All information gathered in this report was accumulated through research agencies including Reis and Xceligent. Although we feel all of this information is accurate, please make no assumptions to its completeness.
We do not guarantee this data and any errors or incompleteness will not hold us liable. Many thanks to Reis, Xceligent, and other agencies for their research.