The Southeast Wisconsin industrial real estate market has been having a very good run for the past several years. Vacancy rates have continued to stay at historically low levels, absorption of space has declined a bit, but remains consistent, and rental rates and sale prices have climbed steadily upwards.
According to the latest statistics gathered by the Commercial Association of Realtors – Wisconsin (CARW), the overall vacancy rate for industrial space in Southeast Wisconsin is 5.7 percent, well below the historic “natural” vacancy rate of 7 to 8 percent (see chart below).
Certain major submarkets have astonishingly low vacancy rates: 1.3 percent in Waukesha County, 0.5 percent in Sheboygan County and 0.6 percent in Walworth County. These submarkets have almost no industrial space available, and any newly available space tends to be snatched up very quickly at premium lease rates or sale
prices. Given the lack of available industrial land in many of Southeast Wisconsin’s submarkets and the lack of new speculative construction, this low vacancy environment promises to continue for the foreseeable future.

South I-94 Corridor
The major exception to this low vacancy rate scenario in Southeast Wisconsin is the South I-94 Corridor, extending from the southern part of Milwaukee County south to the Illinois border. This corridor has been home to an extraordinary amount of industrial development during the last decade, including the development of two multi-million-square-foot distribution centers for Amazon, millions of square feet of space occupied by Uline (with more to come) and a plethora of large speculative buildings developed by both Wisconsin-based and out-of-state developers.
The result is that this corridor has been significantly over-developed, with well over 11 million square feet of vacant space now available and a vacancy rate of over 11 percent in the Kenosha and Racine submarkets, well above the 5.7 percent vacancy rate in the overall Southeast Wisconsin market. While construction of new buildings in this corridor has slowed substantially, it will still take several years for the market to correct and for vacancy rates to return to their natural levels.

Hot submarkets
With the exception of the I-94 South Corridor, however, all the other Southeast Wisconsin submarkets continue to enjoy strong fundamentals, such as low vacancy rates, barriers to entry due to limited available land, and quality developers supported by strong lenders. This has put strong upward pressure on lease rates and on the price per square foot of industrial buildings that are being sold.
As a consequence, lease rates that were in the $5 to $6 per-square-foot range several years ago are now in the $7 to $8 per-square-foot range or higher. And buildings that would have sold in the $60 to $70 per-square foot range just a few years ago are now selling for prices approaching $100 per square foot and often well in excess of that threshold.
Adding to this upward pressure are constantly increasing construction costs, which have risen significantly faster than the inflation rate since the early 2020s. All this means that, in most cases, it has been a landlord’s market, particularly in submarkets where the available industrial space inventory is almost nonexistent.
Based on current trends, we expect to see continued strength in the overall Southeast Wisconsin market, but particularly in the submarkets adjacent to the I-94 West Corridor, such as Waukesha and Walworth counties, and extending even into Jefferson County.
We also expect the submarkets adjacent to the I-41 corridor, such as northern Milwaukee, Ozaukee and Washington counties, to outpace the overall market. Municipalities such as Germantown, Menomonee Falls, Sussex and Jackson have all been very proactive in encouraging industrial development and communities who enable such development to occur will continue to prosper.

Active developers
Southeastern Wisconsin is blessed with many strong industrial development and investment firms who conduct their business prudently and for the long term. Zilber Development has had an excellent track record of building and filling medium-size industrial buildings in the I-41 and South I-94 corridors and continues to steadily grow its portfolio.
The Luther Group has completed several new, successful projects in the Menomonee Falls area and has built a strong portfolio in the New Berlin Industrial Park.
Wangard Properties has recently brought to market several new medium-size speculative buildings in Franklin and Sussex and is actively seeking new opportunities. And
Briohn Construction is very active with new build-to-suit developments in Waukesha and Washington counties, as well as throughout the market.
Local lenders such as Associated Bank, Bank of Ixonia, Landmark Credit and Tri-City Bank are often the source of funding for these new projects. In other words, Southeast Wisconsin has a strong foundation for continued prosperity in the industrial real estate sector for many years to come.

Industrial sale-leasebacks
With the higher interest rate environment that the business community is now facing, industrial sale-leasebacks have enjoyed a resurgence in the Southeast Wisconsin industrial real estate market. Southeast Wisconsin is seen as a desirable market in which to place capital for long-term, low-risk investments.
Recent examples of notable saleleasebacks are the sale of Aztalan Engineering’s 75,800-square-foot industrial campus in Lake Mills, the sale of Cutweld’s 21,900-square-foot industrial building in Menomonee Falls and the sale of an 89,000-square-foot manufacturing building in Waukesha County.
Investors such as Stag, Phoenix Investors, Smart Asset Realty and numerous local investors remain active in purchasing sale-leasebacks and other investment properties in Southeast Wisconsin.
In sum, the Southeast Wisconsin industrial real estate market remains very solid and will be very robust into the foreseeable future, with rental growth steadily continuing and property values continuing to appreciate. It is a good time to be involved in this market as an owner, investor, lender or broker.

NEW BERLIN, March 13, 2025 – The Barry Company is pleased to announce the successful sale of a rare industrial property located in the highly sought-after New Berlin Industrial Park. This prime facility, approximately 15,536 square feet in size, boasts exceptional visibility along Cleveland Avenue, making it a valuable asset in the thriving industrial corridor.

The transaction was an owner/user sale, with Mike Eaton of New Berlin Heating & Air Conditioning acquiring the property. Eaton, who recently sold his company to Philadelphia-based Sila Services in November, remains as President and made the strategic decision to relocate the company to a larger space within the industrial park to accommodate growth and operational needs.

The sellers, long-time New-Berlin business owners of Kitchen Kraft Builders, had operated their custom cabinetry shop out of the location since 1998. With plans for retirement, they were pleased to transfer ownership to another local business.
This transaction highlights the ongoing strength of New Berlin’s industrial market and the commitment of local businesses to investing in the area.

About The Barry Company
The Barry Company, an over 100-year-old independently owned and operated commercial real estate company provides award-winning services throughout southeast Wisconsin and beyond. The Barry Company has won over 20 awards from the Commercial Association of Realtors-Wisconsin, including two Realtor® of the Year awards. The company has also received multiple Best Deal/Lease of the Year awards from The Business Journal

MILWAUKEE, January 7, 2025 – The Barry Company is thrilled to announce the successful completion of a sale-leaseback transaction for Aztalan Engineering’s business campus, located on approximately 10 acres (9.98 acres to be precise) in the Lake Mills Business Park. The campus includes two buildings: 100 South Industrial Drive, a 30,000-square-foot facility, and 150 South Industrial Drive, a 45,888-square-foot facility, for a total of 75,888 square feet. This transaction was completed with SAC Lake Mill, LLC, an investor focused on acquiring and managing high-value commercial properties.

Aztalan Engineering, a 100% employee-owned ESOP company with 46 years of expertise in precision CNC machining, produces close-tolerance components for critical industries such as medical, aerospace, and oil & gas. The sale-leaseback allows the company to continue its operations at the facility while utilizing the proceeds for strategic initiatives, including the acquisition of related companies. The campus, situated in a prominent business park, plays a vital role in supporting Aztalan Engineering’s advanced manufacturing capabilities.

This transaction highlights the creative efforts of The Barry Company – David Buckley and Jim Barry – in structuring a mutually beneficial agreement that aligns with the objectives of all parties involved. The Barry Company remains dedicated to fostering growth and opportunity by connecting industrial buyers and sellers across Wisconsin with innovative commercial real estate solutions, such as sale-leasebacks.

About The Barry Company
The Barry Company, an over 100-year-old independently owned and operated commercial real estate company provides award-winning services throughout southeast Wisconsin and beyond. The Barry Company has won over 20 awards from the Commercial Association of Realtors-Wisconsin, including two Realtor® of the Year awards. The company has also received multiple Best Deal/Lease of the Year awards from The Business Journal

MILWAUKEE, January 2, 2025 – The Barry Company is thrilled to announce the successful sale of a historic 129-year-old industrial building located at 324 N 15th Street and 1257-1439 W Saint Paul Avenue in Milwaukee’s Menomonee Valley. This 56,000 square foot property, situated on 2.1 acres, will be transformed into a residential apartment development. The transaction involved the seller, an affiliate of the Read family, and the buyer, Kendall Breunig of Franklin-based Sunset Investors.

The iconic four-story building is steeped in Milwaukee’s industrial heritage. Listed on the market for over 20 years, it was one of The Barry Company’s longest-listed properties. The site’s redevelopment was made possible after an extensive re-zoning process that resulted in a solution satisfying all interested parties. The transformation will bring new life to an industrial area while preserving the property’s historic character.

This very significant deal was skillfully facilitated by Kurt Van Dyke and Jim Barry III of The Barry Company. Despite the complexity of the transaction, which involved navigating extended timelines, zoning challenges, and preserving the historical integrity of the property, all parties worked diligently to ensure a successful outcome.

The Barry Company remains committed to connecting industrial buyers and sellers across Wisconsin with innovative commercial real estate solutions that drive growth and opportunity.

About The Barry Company
The Barry Company, an over 100-year-old independently owned and operated commercial real estate company provides award-winning services throughout southeast Wisconsin and beyond. The Barry Company has won over 20 awards from the Commercial Association of Realtors-Wisconsin, including two Realtor® of the Year awards. The company has also received multiple Best Deal/Lease of the Year awards from The Business Journal

MILWAUKEE, December 2, 2024 – The Barry Company proudly announces the successful sale of 15.85 acres of land at N128 W21795 Holy Hill Road, Germantown, WI. The land is located immediately at the interchange of I-41 and Holy Hill Road offering exceptional visibility with approximately 1,000 feet of frontage along US Highway 45/41. This transaction involved the seller, RA Steinman Legacy LLC, and the buyer, Truck Country of Wisconsin, Inc., one of the largest Freightliner dealership groups in the nation.

With operations across Iowa, Indiana, Illinois, Ohio, Michigan, and Wisconsin, Truck Country plans to transform the site into a retail truck sales and services facility. The development will feature a 37,000 square-foot building designed to support the company’s continued growth and commitment to serving the region’s commercial trucking needs.

This very significant deal was skillfully facilitated by David Buckley and Jim Barry III of The Barry Company and Sam Dickman Jr. of The Dickman Company. Despite the complexity of the transaction and several extended deadlines, both parties navigated the process with expertise and determination. “We’re thrilled to have played a role in bringing this transformative project to Germantown’s commercial gateway,” said David Buckley.

The Barry Company remains committed to connecting industrial buyers and sellers across Wisconsin with innovative commercial real estate solutions that drive growth and opportunity.

About The Barry Company
The Barry Company, an over 100-year-old independently owned and operated commercial real estate company provides award-winning services throughout southeast Wisconsin and beyond. The Barry Company has won over 20 awards from the Commercial Association of Realtors-Wisconsin, including two Realtor® of the Year awards. The company has also received multiple Best Deal/Lease of the Year awards from The Business Journal and has been awarded the Broker of the Year honor by Riverworks Development Corporation

MILWAUKEE, August 23, 2024 –The Barry Company is pleased to announce that it has sold one of the last significantly large parcels of prime development land located within the Metropolitan Milwaukee market. The land of approximately 34 acres is located at the southeast intersection of Moorland Road and Greenfield Ave., just south of I – 94 at the entrance to the City of New Berlin. The land sold for a price of $11M. Selling the property faced many challenges over the years with wetland delineation issues, tree ordinances, access and right of way resolutions, zoning and comprehensive land use amendments, among many other issues that needed to be resolved while on the market. The property is slated for a new development known as the Conservancy which is being conducted by Wimmer Communities.

Wimmer Communities Statement:
“We thank you for your interest in Wimmer Communities developments. Currently, we have no comment. We look forward to appearing before the City of New Berlin Review Board to present The Conservancy project. We will be sending out a press release with the exciting news about the development when we have more to share. Please contact Alyssa Dunning, Marketing Director for Wimmer Communities, at 414-529-3900 x 1170 with any questions.

For more information about this transaction or to explore commercial real estate opportunities in southeast Wisconsin, please contact The Barry Company at 414-271-1870.

About The Barry Company

The Barry Company, an over 100-year-old independently owned and operated commercial real estate company provides award-winning services throughout southeast Wisconsin and beyond. The Barry Company has won over 20 awards from the Commercial Association of Realtors-Wisconsin, including two Realtor® of the Year awards. The company has also received multiple Best Deal/Lease of the Year awards from The Business Journal and has been awarded the Broker of the Year honor by Riverworks Development Corporation.

MILWAUKEE, July 15, 2024 – The Barry Company, a Milwaukee-based commercial real estate brokerage firm, has listed for sale an iconic, approximately 16,500 square foot (first floor area as floors could be added), 40-foot-high clear span building located along the Menomonee River in the Menomonee Valley, with tremendous visibility from I-94. The property could potentially have up to three floors of space. The building has approximately 750 feet of frontage on the Menomonee River, which could be used for development of a riverwalk and related outdoor space. The property is in an Opportunity Zone and there may be potential for New Market Tax Credits and Historic Tax Credits among other incentives offed by the Menomonee Valley Partners.

The building’s architectural elements certainly have a rich history. Originally constructed in 1904, the Purifier House building is on the campus of the Milwaukee Gas Light Company’s former West Side Plant. This unique structure was the product of renowned architect Alexander Eschweiler, who designed it in the Richardsonian Romanesque style.

“This is one of the most unique and interesting buildings to come to the market in Milwaukee in recent years. It is full of creative potential,” said David Barry, CCIM, SIOR, who is marketing the property for The Barry Company. “It would be a tremendous venue for restaurant, entertainment, cultural, office, and, really, many other uses”.

Zimmerman Architectural Studios renovated a neighboring building for their corporate headquarters, paying homage to the campus’s roots and showcasing striking views of the original trusswork. Zimmerman’s CEO, Steve Raasch, notes that their beautiful office space contributes to the great work environment and culture of their award-winning design firm. “Our neighboring building has the same incredible potential,” he says.

For more information about this listing or to explore commercial real estate opportunities in southeast Wisconsin, please contact The Barry Company at 414-271-1870.

About The Barry Company

The Barry Company, an over 100-year-old independently owned and operated commercial real estate company provides award-winning services throughout southeast Wisconsin and beyond. The Barry Company has won over 20 awards from the Commercial Association of Realtors-Wisconsin, including two Realtor® of the Year awards. The company has also received multiple Best Deal/Lease of the Year awards from The Business Journal and has been awarded the Broker of the Year honor by Riverworks Development Corporation.

MILWAUKEE, July 9, 2024 – The Barry Company, a leading southeast Wisconsin commercial real estate company headquartered in downtown Milwaukee, is thrilled to announce the successful completion of a sale transaction for a property location in Menomonee Falls on Beacon Street. The transaction, involving a 9,200-square-foot office building, is one of the few office building sales in recent months above $100 per square foot in the area.

The Barry Company represented both the buyer and seller in this transaction. Commercial Broker, Nick Zurich, explains the highlights of the property’s features, “With great visibility and ample space, this entire property will benefit both the Buyer and Menomonee Falls for years to come.”

“We are very satisfied with the completion of this deal,” said Kyle Eckerman, Commercial Broker at The Barry Company, working with the buyer. “This deal is a prime example that despite current office market trends, there are always deals to be made with a niche owner-user, and this building was perfect for the buyer’s specific use.”

The property, complete with monument signage along the I-41 freeway in Menomonee Falls, was purchased by Illume Cosmetic Surgery & Spa, thus paving the way for their fourth location in the Milwaukee area.

For more information about this transaction or to explore commercial real estate opportunities in southeast Wisconsin and beyond, please contact The Barry Company at 414-271-1870.

About The Barry Company

The Barry Company, an over 100-year-old independently owned and operated commercial real estate company provides award-winning services throughout southeast Wisconsin and beyond. The Barry Company has won over 20 awards from the Commercial Association of Realtors-Wisconsin, including two Realtor® of the Year awards. The company has also received multiple Best Deal/Lease of the Year awards from The Business Journal and has been awarded the Broker of the Year honor by Riverworks Development Corporation.

Milwaukee, May 9, 2024 – The Barry Company, a leading southeast Wisconsin commercial real estate company headquartered in downtown Milwaukee, announced today that Eastside Commons, LLC has sold its 13,736 square feet multifamily/commercial property located at 712 E. Knapp Street, Milwaukee, to Fountainhead Contractors, LLC.

Kyle Eckerman of the Barry Company represented the seller in this transaction. He highlighted how swift the transaction was due to the robust interest from multiple prospects. Eckerman stated, “It was a very desirable property for multiple reasons: primarily its lower east-side location and the building’s outstanding opportunity for apartment redevelopment”.

This sale underscores the heightened competitiveness of Milwaukee’s multifamily real estate market. The city’s ongoing expansion of its residential sector, including the conversion of vacant properties into residential units, reflects Milwaukee’s status as one of the most fiercely contested markets for multifamily buildings nationwide.

For more information about this transaction or to explore commercial real estate opportunities in southeast Wisconsin and beyond, please contact The Barry Company at 414-271-1870.

About The Barry Company

The Barry Company, an over 100-year-old independently owned and operated commercial real estate company provides award-winning services throughout southeast Wisconsin and beyond. The Barry Company has won a total of 20 awards from the Commercial Association of Realtors-Wisconsin, including two Realtor of the Year awards. The company has also received multiple Best Deal/Lease of the Year awards from The Milwaukee Business Journal and has been awarded Broker of the Year honor by Riverworks Development Corporation.

Milwaukee, April 30, 2024 – The Barry Company, a leading southeast Wisconsin commercial real estate company headquartered in downtown Milwaukee, is thrilled to announce the successful completion of a sale-leaseback investment transaction for a property location in Menomonee Falls on Enterprise Avenue. The transaction, involving a 21,900 square foot industrial building, demonstrates the continued demand for sale-leaseback transactions and for industrial investment properties.

“We are excited to have played a pivotal role in this innovative transaction,” said Kyle Eckerman, Commercial Broker at The Barry Company. “This deal underscores our commitment to delivering creative solutions and maximizing value for our clients in today’s dynamic real estate market.”

The sale-leaseback arrangement not only provides the seller with immediate liquidity but also allows the seller/tenant to retain operational control of the property through a long-term lease agreement. This strategic maneuver enables businesses to unlock capital tied up in real estate assets while maintaining continuity in their operations. The industrial building, located in Menomonee Falls, offers prime access to major transportation routes and a thriving industrial business community.

For more information about this transaction or to explore commercial real estate opportunities in southeast Wisconsin and beyond, please contact The Barry Company at 414-271-1870.

About The Barry Company

The Barry Company, an over 100-year-old independently owned and operated commercial real estate company provides award-winning services throughout southeast Wisconsin and beyond. The Barry Company has won a total of 20 awards from the Commercial Association of Realtors-Wisconsin, including two Realtor of the Year awards. The company has also received multiple Best Deal/Lease of the Year awards from The Milwaukee Business Journal and has been awarded Broker of the Year honor by Riverworks Development Corporation.