MILWAUKEE, July 7, 2008 — After years of healthy performance, Milwaukee retail fundamentals are expected to soften this year; however, the long-term outlook for metro remains optimistic, according to a second-quarter Retail Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm. Several national retailers have entered the market during the past 12 months, drawn by Milwaukee’s consistent population growth and stable income expansion.
“Local buyers will likely target repositioning opportunities, whereas out-of-state investors may continue to focus on turnkey assets,” says Matthew Fitzgerald, regional manager of the Milwaukee office of Marcus & Millichap.
Following are some of the most significant aspects of the Milwaukee Retail Research Report:
Developers are expected to add 1.3 million square feet of retail space to the metro in 2008.
Vacancy is forecast to end the year at 11.7 percent.
Asking rents are projected to end the year at $15.31 per square foot, a 0.3 percent gain.
Effective rents will end the year at $13.58 per square foot.
During the previous 12-month period, the leisure and hospitality and educational and health services sectors added 1,900 and 1,600 positions, respectively.
For a copy of the complete Milwaukee Retail Research Report, as well as reports on other markets nationwide, visit our website at www.MarcusMillichap.com.
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