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

com

2010 Milwaukee Apartment Investor

Q1 RESEARCH REPORT
Milwaukee Asking Apartment Rent Milwaukee Apartment Vacancy Rate Trends and Forecasts
$834.00
8.00%
$832.00

% CHANGE IN VACANCY
7.00%
$830.00
6.00%
$828.00
QUARTER

5.00% Milwaukee
$826.00 Midwest
4.00%
US
$824.00
3.00%

$822.00 2.00%

$820.00 1.00%

$818.00 0.00%
1Q09 2Q09 3Q09 4Q09 1Q10 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

ASKING RENT (source REIS) YEAR (source REIS)

Apartment Inventory Growth Rates Comparison Milwaukee Net Apartment Absorption

0.45%
100
0.40%
% CHANGE IN GROWTH RATE

0
0.35% 1Q09 2Q09 3Q09 4Q09 1Q10
-100
0.30%
SQUARE FEET

4Q09
-200
0.25% 1Q10

0.20% YTD Avg -300

0.15% -400

0.10% -500
0.05%
-600
0.00%
Milwaukee Midwest US -700

GEOGRAPHY (source REIS) QUARTER (source REIS)

Points of Interest From Reis Milwaukee Apartment Inventory

100000
• 4 05 new units were completed in 2009, making it more difficult
90000
to maintain Milwaukee’s normally low vacancy rate.
80000
• 2009’s vacancy rate closed at 5.0% and is expected to creep towards
TOTAL SQUARE FEET

70000
5.2% in our preliminary findings for the first quarter 2010.
60000
• Reis is predicting 376 of the 983 units under Milw aukee Inventory Vacant Stock
Milw aukee Inventory Completions
50000
construction to be completed by year’s end. Milw aukee Inventory Occupied Stock
40000
• Be wary of the condominium market; Experts are calling this housing
30000
a ‘wild card’ factor which could skew vacancy and rent rates. 20000
• Reis expects vacancy rates to jump to a high of 5.6% by the 10000
end of 2010 and even higher at 5.8% for the year 2011. 0
• On a positive note, rental rates only declined by about 1.7%; leaving the 1Q09 2Q09 3Q09 4Q09 1Q10
average at $826 per month with an effective rent at $783 per month. QUARTER (source REIS)

YOUR INVESTMENT GROUP

Patrick Gallagher, CCIM Jason Hernandez Gordy Welch

pgallagher@sg-re.com jhernandez@sg-re.com gwelch@sg-re.com
414.270.4108 414.270.4118 414.270.4115
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.