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

com

2010 Milwaukee Retail Investor

Q1 RESEARCH REPORT
Milwaukee Retail Vacancy Rate Trends and Forecast Milwaukee Asking Retail Rent
$15.70
16.00%
$15.65
% CHNAGE IN VACANCY

14.00%
$15.60

$15.55

QUARTER
12.00% Milwaukee
Midwest
10.00%
$15.50
US
$15.45
8.00%
$15.40
6.00%
$15.35
4.00% $15.30
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
1Q09 2Q09 3Q09 4Q09 1Q10

YEAR (source REIS) ASKING RENT (source REIS)

Milwaukee Retail Inventory Retail Inventory Growth Rates Comparison

18000000 0.12%
16000000
% CHNAGE IN GROWTH RATE

0.10%
14000000
TOTAL SQUARE FEET

12000000 0.08%
Milwaukee Inventory Vacant Stock 4Q09
10000000 Milwaukee Inventory Completions 1Q10
Milwaukee Inventory Occupied Stock
0.06%
8000000 YTD Avg

6000000 0.04%

4000000
0.02%
2000000

0 0.00%
1Q09 2Q09 3Q09 4Q09 1Q10 Milwaukee Midwest US

QUARTER (source REIS) GEOGRAPHY (source REIS)

Points of Interest From Reis Milwaukee Net Retail Absorption

• N egative net absorption pushed the elevated vacancy rate over 100000

11.5% at the end of 2009, the highest covered by Reis in 18 years.

50000
• Expect the vacancy rate to crawl up even more at
the end of the 1st quarter, reaching 12.4%.
SQUARE FEET

0
• Reis is predicting another 30,000 square feet of retail added 1Q09 2Q09 3Q09 4Q09 1Q10

with a negative net absorption of 105,000 sf, keeping the -50000

vacancy rate at approximately 12.4% for the year 2010.

-100000
• 2011 appears to be worse with a projected vacancy rate of 13.6%.
• Large format developments have stalled almost entirely with -150000
Target and Walmart as the only visibly expanding retail chains.
• In 2009, the average asking rent dropped to $15.18 psf (0.9% -200000

drop) with another 1.0% drop during the 1st quarter of 2010. QUARTER (source REIS)
• Expect the final asking rents for 2010 around $15.03 psf.

YOUR RETAIL GROUP

John Bergh Cory Sovine

jbergh@sg-re.com csovine@sg-re.com
608.237.7550 414.270.4111
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.