Q2 2017 Industrial Barry Bulletin
The Barry Bulletin
Industrial Q2 2017
Milwaukee industrial market experiences robust quarter
The Milwaukee industrial market experienced a robust second quarter of 2017. Although the vacancy rate in the market grew slightly from 4.2% to 4.3%, there was more than 1.5 MSF absorbed during the quarter. This is a phenomenal jump from the 316,696 SF recorded during the first quarter.
The Milwaukee industrial market added more than 1.8 MSF of new product during Q2 2017. Large completions included Uline’s 880,000 SF distribution center in Kenosha, which was immediately absorbed, as well as First Park 94’s Building B, a 602,000 SF speculative industrial building. Madden Communications leased half of the property, but the remaining space, along with other speculative space added to the market means there is 400,000 SF of new speculative industrial space currently available. This accounts for the slight increase in the area’s vacancy rate for the quarter.
The Milwaukee industrial market has more than 900,000 SF still under construction, including 313,000 SF of speculative space in Franklin and Kenosha.
Lease rates in the Milwaukee industrial market continued to improve during the second quarter. Overall, the average asking rate for the industrial market rose from $4.58/SF at then end of Q1 2017 to $4.66/SF at the end of Q2 2017.
Industrial/Manufacturing properties remained relatively steady, increasing by $0.02 since the previous quarter, to end Q2 at $4.25/SF. Flex/R&D properties saw the largest rental rate incrase, from $5.24 during Q1 2017 to $5.38/SF during Q2. Warehouse/Distribution properties saw a similar increase during Q2 2017, increasing by $0.13/SF to $4.32/SF. Waukesha County saw the most improvement in rental rates across the board during Q2 2017, with both industrial and flex asking rates going up by $0.14/SF.
The unemployment rate for the Milwaukee metropolitan statistical area (MSA) dropped to 3.1% in May 2017, down 110 basis points from the 4.2% unemployment rate in January. Statewide, the unemployment rate is lower still, reported at 2.8% in May 2017. Nationally, the unemployment rate is 4.1%.
DOWNLOAD THE FULL REPORT HERE: The Barry Bulletin – Industrial Q2 2017
Want to download the full report?
For additional information contact:
James T. Barry III
President
jbarry@barrycre.com
R&T Construction Properties
R&T Construction Properties purchases suburban Milwaukee property
The Barry Company represents Buyer and Seller in transaction
R&T Construction Properties has purchased the approximately 11,000 square foot industrial facility located at 4264 S. Packard Avenue, Saint Francis, Wis. from Triwire 3, LLC.
The property formerly housed the headquarters of Black Bear Bottling Group, LLC. The buyer, a private investor, will lease the building to an undisclosed tenant.
David Barry, CCIM, SIOR of The Barry Company brokered the transaction.
About The Barry Company
The Barry Company, a 95-year-old independently owned and operated commercial real estate company provides award-winning services throughout southeast Wisconsin and beyond. The Barry Company has won seven awards from the Commercial Association of Realtors-Wisconsin in the past five years, including five Deal of the Year awards and two Realtor® of the Year awards. The company has also received three consecutive 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.
For more information, contact:
David L. Barry, CCIM, SIOR
dbarry@barrycre.com
414-272-6733
360 LLC
Design/build contractor purchases Milwaukee property
The Barry Company represents Buyer in transaction
360 LLC has purchased the 20,000 square foot industrial facility located at 6000 N. 60th Street, Milwaukee from Knight Barry Exchange, LLC. 360 LLC will use the property for its growing design/build business.
James Young of the Barry Company represented the buyer in the transaction.
About The Barry Company
The Barry Company, a 95-year-old independently owned and operated commercial real estate company provides award-winning services throughout southeast Wisconsin and beyond. The Barry Company has won seven awards from the Commercial Association of Realtors-Wisconsin in the past five years, including five Deal of the Year awards and two Realtor® of the Year awards. The company has also received three consecutive 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.
For more information, contact:
James M. Young, MBA
jyoung@barrycre.com
414-272-6723
Badger Alloys
Badger Alloys purchases Milwaukee industrial property
The Barry Company represents Buyer in transaction
BA Properties 2 LLC has purchased the 11,000 square foot office/warehouse facility located at 5050 W. State Street, Milwaukee, from DMA LLC.
Badger Alloys, Inc. which owns other industrial properties nearby, will occupy the facility.
James M. Young of The Barry Company represented Badger Alloys in the transaction.
About The Barry Company
The Barry Company, a 95-year-old independently owned and operated commercial real estate company provides award-winning services throughout southeast Wisconsin and beyond. The Barry Company has won seven awards from the Commercial Association of Realtors-Wisconsin in the past five years, including five Deal of the Year awards and two Realtor® of the Year awards. The company has also received three consecutive 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.
For more information, contact:
James M. Young, MBA
jyoung@barrycre.com
414-272-6723
Milwaukee Beer Museum
Milwaukee Beer Museum sold; to be rehabbed for Gravity Marketing’s HQ
The Barry Company brokers sale transaction
Gravity Real Estate, LLC has purchased the 4,440 square foot property located at 720-722 S. 5th Street, Milwaukee from James M. Kupferschmidt Living Trust. The property formerly housed the Milwaukee Beer Museum, a collection of beer industry memorabilia. It includes a two-story commercial building and a 1,000 square foot garage area.
The Walker’s Point building will be renovated to house the operations of Gravity Marketing, which will move to the property from its current location at 305 N. Plankinton Ave., Milwaukee. Founded in 2009, Gravity Marketing is an outsourced marketing solution for small and medium-sized businesses, providing customized, long-term sales and marketing strategies to make businesses more profitable.
“Gravity Marketing continues to grow as business owners experience the full-time results an outsourced marketing team can deliver at a part-time price,” said Mike Kuharske, president of Gravity Marketing, LLC. “Our relocation to South 5th Street will accommodate this growth as well as future expansions to our business.”
David Buckley, Senior Vice President of The Barry Company, brokered the transaction.
About The Barry Company
The Barry Company, a 95-year-old independently owned and operated commercial real estate company provides award-winning services throughout southeast Wisconsin and beyond. The Barry Company has won seven awards from the Commercial Association of Realtors-Wisconsin in the past five years, including five Deal of the Year awards and two Realtor® of the Year awards. The company has also received three consecutive 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.
For more information, contact:
David J. Buckley
dbuckley@barrycre.com
414-272-6730
7841 W. Appleton Ave.
Milwaukee commercial building sold
The Barry Company represents Seller in transaction
WGLB Scholarship In Memory of Joel J. Kinlow, Inc. has purchased the 12,852 square foot commercial building located at 7841 W. Appleton Ave., Milwaukee.
David Buckley, Senior Vice President of The Company represented the owner of the building, TMJ Land, Inc. in the transaction.
About The Barry Company
The Barry Company, a 95-year-old independently owned and operated commercial real estate company provides award-winning services throughout southeast Wisconsin and beyond. The Barry Company has won seven awards from the Commercial Association of Realtors-Wisconsin in the past five years, including five Deal of the Year awards and two Realtor® of the Year awards. The company has also received three consecutive 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.
For more information, contact:
David J. Buckley
dbuckley@barrycre.com
414-272-6730
ICYMI – 2017 Spring Edition
In Case You Missed It…
Spring has sprung and The Barry Company has been busy. Here is a sampling of what we have been up to recently!
To view this post in PDF format, click here.
DONE DEALS
SOLD
16775 W. Dakota Street, New Berlin, WI
Highlights:
43,168 SF Industrial Building sold for $1,845,000 to Lakeside Gutter Products READ MORE
Agents:
Kurt Van Dyke, CCIM, SIOR & Pete Slezak
LEASED
5444 N. 124th Street, Butler, WI
Highlights:
15,904 SF industrial building leased to Riteway Bus Service
Agents:
James M. Young, MBA & Kurt Van Dyke, CCIM, SIOR
SOLD
3485 N. 127th Street, Brookfield, WI
Highlights:
13,271 SF industrial facility sold for $725,000 to Canvas Corner, Inc. READ MORE
Agents:
James M. Young, MBA & Pete Slezak
LEASED
1555 N. River Center Drive, Milwaukee, WI
Highlights:
85,831SF office space lease renewal to major bank tenant at Schlitz Rivercenter.
Agent:
David L. Barry, CCIM, SIOR
SOLD
Globe Drive, SW of Hwy 20 and International Drive, Mount Pleasant, WI
Highlights:
11.5 acres sold to Emerson Electric Co. for InSinkErator’s new world HQ. READ MORE
SOLD
1700 W. Cornell Street, Milwaukee, WI
Highlights:
78,000 SF industrial building sold for $1,745,000 to Share Corp./Athea Laboratories. READ MORE
Agent:
James M. Young, MBA
SOLD
1780 E. Bolivar Avenue, Milwaukee, WI
Highlights:
9,600 SF industrial building sold for $385,000 to Compost Crusader and Steel Farmer LLC. READ MORE
Agent:
David L. Barry, CCIM, SIOR
SOLD
7025 S. 10th Street, Oak Creek, WI
Highlights:
13,204 SF industrial building sold for $755,000 to private investor who will lease property to undisclosed tenant.
Agent:
David L. Barry, CCIM, SIOR
Highlights:
Interstate visible at diamond interchange
Open layout
Huge parking area
$3,900,000
Agent:
David L. Barry, CCIM, SIOR
FOR SALE OR LEASE
4606 N. 132nd Street, Butler, WI
Highlights:
12,000 SF industrial building
Immaculate “like new” condition
Divisible
Dock and drive-in access
$850,000
$6.00/SF NET
Agent:
Kevin C. Barry, CCIM
FOR SALE OR LEASE
13111 W. Silver Spring Drive, Butler, WI
Highlights:
32,720 SF industrial building
Divisible
300 FT of frontage on high-traffic thoroughfare
$1,495,000
$4.10/SF NNN
Agent:
Kurt Van Dyke, CCIM, SIOR
Highlights:
117,000 SF industrial space
Extremely heavy power and crane capacity
Up to 72 FT ceiling height and 69 FT bay width
$3.50/SF NNN
FOR SALE
4325 S. 27th Street, Franksville, WI
Highlights:
11,800 SF industrial building with exceptional interstate visibility
Very well-kept property
Large mezzanine for additional storage
$885,000
Agent:
David L. Barry, CCIM, SIOR
FOR SALE OR LEASE
N114W18686 Clinton Drive, Germantown, WI
Highlights:
6,003 SF industrial building
Well-maintained property
Drive-in loading
$480,000
$8.00/SF Gross
Agent:
Maximilian M. Yokosh
FOR LEASE
21650 Doral Road, Waukesha, WI
Highlights:
4,200 SF industrial space in convenient Waukesha location
Drive-through potential
Clearspan building
$1,750/MO Gross + Utilities
Agent:
James M. Young, MBA
FOR SALE
807 Waterford Avenue, Milwaukee, WI
Highlights:
20,363 SF multi-purpose building with fenced lot
Multiple grade level doors
Possible to multi-tenant
$795,000
Agent:
David L. Barry, CCIM, SIOR
Highlights:
34,000 SF warehouse available (divisible)
4,419 SF modern office space available
Professionally managed with on-site landlord
Fenced outside storage available
$3.50/SF NET Industrial
$7.50/SF NET Office
Share Corporation
Share Corporation Purchases Neighboring Milwaukee Industrial Property
The Barry Company represents Buyer in transaction
Share Corporation, the parent company of Athea Laboratories, has purchased the 78,000 square foot industrial building located at 1700 W. Cornell St., Milwaukee, from investment entity Richards Street Industrial LLC.
The new building will replace a 56,000 square foot facility Athea currently occupies at 7855 N. Faulkner Road, Milwaukee. The company had planned to expand its 246,000 square foot manufacturing facility at 1900 W. Cornell St., Milwaukee, however, the availability of the neighboring property allowed Athea to rethink its overall facility strategy.
“This acquisition gives Athea control of two large blocks of neighboring space which will accommodate the future growth of its business,” said Jim Young of The Barry Company, who represented the buyer in the transaction. “Having a separate facility for blending certain chemicals helps the company overcome permitting obstacles they were facing by trying to put everything under one roof.”
Athea Laboratories manufactures, inventories, and private labels nearly 400 liquid, aerosol, wet wipe, and powder products that are sold around the world through distribution and OEM partnerships.
About The Barry Company
The Barry Company, a 95-year-old independently owned and operated commercial real estate company provides award-winning services throughout southeast Wisconsin and beyond. The Barry Company has won seven awards from the Commercial Association of Realtors-Wisconsin in the past five years, including five Deal of the Year awards and two Realtor® of the Year awards. The company has also received three consecutive 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.
For more information, contact:
James M. Young, MBA
jyoung@barrycre.com
414-272-6723
Q1 2017 Industrial Barry Bulletin
The Barry Bulletin
Industrial Q1 2017
Milwaukee industrial market remains strong
Though the Milwaukee industrial market had a slow start during the first quarter of 2017, strong fundamentals and steady activity should produce another strong year overall.
The unemployment rate for the Milwaukee metropolitan statistical area (MSA) dropped to 4.2% in January 2017, down 50 basis points from the 4.7% unemployment rate of January 2016. Nationally , the unemployment rate for January 2017 was 5.1%.
The Milwaukee industrial market saw 445,620 SF of positive absorption during the first quarter of 2017. Though absorption was down from the 1.2M recorded during Q1 2016, it increased considerably from the 16,540 SF of positive absorption reported in Q4 2016. The Milwaukee industrial market has seen positive absorption during every quarter for the past 7 years. This absorption has helped keep the area’s vacancy rate well below its historical average, and also below the national industrial vacancy rate of 8.4% as reported by the National Association of Realtors for Q1 2017. The vacancy rate in the Milwaukee industrial market increased by 12 basis points to end the quarter at 4.27%.
Asking rental rates in the market increased slightly overall during the first quarter of 2017, up 6 basis points to $4.60/SF NNN. Asking rental rates averaged $4.21/SF NNN for industrial/manufacturing space and $4.19/SF NNN for warehouse/distribution space. Flex space, which had an average asking rental rate of $4.95/SF NNN at this time last year, has steadily increased over time, ending the quarter at $5.30/SF NNN.
219,902 SF of industrial space was delivered during the first quarter of 2017, representing several building expansions. The Milwaukee industrial market currently has more than 2.2MSF under construction, with a majority of the space concentrated in Kenosha County, encompassing Uline’s 880,000 SF distribution center and First Industrial’s 602,000 SF speculative construction in First Park 94. The remainder of development is split between Milwaukee, Racine and Waukesha counties.
DOWNLOAD THE FULL REPORT HERE: The Barry Bulletin – Industrial Q1 2017
Want to download the full report?
For additional information contact:
James T. Barry III
President
jbarry@barrycre.com
InSinkErator Global Headquarters
InSinkErator completes purchase of land for new world headquarters
InSinkErator has completed the purchase of an 11.5 acre site on Globe Drive, southwest of Hwy. 20 and International Dr., Mount Pleasant, Wis.
InSinkErator, a division of Fortune 500 ranked Emerson Electric Co., is the world’s largest manufacturer of food waste disposers and instant hot water dispensers for home and commercial use. The newly purchased site will house the company’s state-of-the-art 85,000 square foot world headquarters.
Kevin Barry, CCIM and David Barry, CCIM, SIOR of The Barry Company represented InSinkErator in the purchase.
“Completing this land sale was a crucial piece of the puzzle in securing the future of InSinkErator’s $24M headquarters project,” said Kevin Barry. “It offers a great strategic location near I-94 in the Chicago-Milwaukee corridor.”
The seller was an investment group operating as a division of Chicago-based HSA Commercial.
About The Barry Company
The Barry Company, a 95-year-old independently owned and operated commercial real estate company provides award-winning services throughout southeast Wisconsin and beyond. The Barry Company has won seven awards from the Commercial Association of Realtors-Wisconsin in the past five years, including five Deal of the Year awards and two Realtor® of the Year awards. The company has also received three consecutive 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.
Kevin C. Barry, CCIM
kbarry@barrycre.com
414-272-6728
David L. Barry, CCIM, SIOR
dbarry@barrycre.com
414-272-6733
