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Anniversary Edition
August 2020
For the first time in years we have seen the industrial real estate vacancy rate climb above 4%, despite the positive absorption that occurred during the second quarter 2020.  A year ago, the vacancy rate was 3.9% so the industrial real estate market has remained relatively stable.  For comparison, we saw the vacancy rate above 10% during the Great Recession of 2008.  Some of this appearance of stability is resulting from large deliveries of new space and subsequent absorption of it in the marketplace, including activity from Amazon in Racine, Kenosha and Milwaukee Counties over the past 18 months.  The office and retail sectors have slowed during the Pandemic but industrial seems to have ongoing, yet lower levels of activity. 
Leasing, which can provide greater flexibility to a company than ownership, has actually increased as companies need to make decisions about their real estate strategies moving forward.  Lease rates are attractive and landlords are willing to cut pandemic-era deals with new tenants or lease renewals.  We are certainly seeing a higher rate of existing industrial properties coming onto the marketplace, but most of this is quickly absorbed due to pent-up demand and a scarce supply.  The financial and capital markets are still functioning, with some additional risk premiums factored in to the cap rate, interest rates, and ROI expectations.  We will continue to actively monitor the industrial real estate market so we can provide timely advice for commercial real estate decision making. 
Recent PARADIGM Deals

Facilitated the sale of a 20,432 SF industrial warehouse facility on behalf of All Scrap, LLC to LEB 3364, LLC at 3330 Fond du Lac Avenue and 3205 West Burleigh  Street in Milwaukee, Wisconsin.

Facilitated the sale of a 21,600 SF industrial manufacturing facility on 4.27 acres on behalf of Wessel Properties, LLC from Bruschitech USA Inc. at 8050 North Granville Woods Road & 6840 West Bradley Road in Milwaukee, Wisconsin.

Represented Jewish Home and Care Center, Inc in the sale of a 8.93 acre lot of vacant land to be used for office and retail development to I-Mequon I, LLC at 10865 – 10911 North Port Washington Road in Mequon, Wisconsin.

Facilitated the lease of 14,400 SF of industrial flex space on behalf of Hakaduli Properties, LLC to Mickey’s Linen & Towel Supply, Inc. at 6591 North Sidney Place in the Glendale Business Center in Glendale, Wisconsin.
Whether it's a complementary Broker Opinion of Value for a property, a search of available space, or just advice regarding current market uncertainties, please allow us to be your resource.
Brian Parrish, MBA
President & CEO
Matt Friedman
Vice President & Partner
Copyright © 2020 PARADIGM Real Estate Corporation, All rights reserved.

(262) 717 - 5151

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