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

com

2009 Milwaukee Retail Investor

Q4 RESEARCH REPORT
Milwaukee Retail Vacancy Rate Trends and Forecasts (source REIS) Retail Inventory Growth Rates Comparison (source REIS)

% CHANGE IN GROWTH RATE

0.12%
16.00%
% CHANGE IN VACANCY

0.10%
14.00%

0.08%
12.00%
Milwaukee 3Q09
Midwest 0.06% 4Q09
10.00%
US YTD Avg
0.04%
8.00%

6.00%
0.02%

4.00% 0.00%
2004 2005 2006 2007 2008 2009 Milwaukee Midwest US

YEAR GEOGRAPHY

Milwaukee Asking Retail Rent (source REIS)

Milwaukee Retail Inventory (source REIS)

$15.35 TOTAL SQUARE FEET 18000000

16000000
$15.30
14000000
QUARTER

$15.25 12000000

10000000 Milwaukee Inventory Vacant Stock

$15.20 Milwaukee Inventory Completions
8000000 Milwaukee Inventory Occupied Stock
$15.15 6000000

4000000
$15.10
2000000
$15.05 0
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09

ASKING RENT QUARTER

Points of Interest from reis Milwaukee Net Retail Absorption (source REIS)

• P reliminary fourth quarter data puts the year-end

400000
2009 vacancy rate at 11.5%, down 60 basis points from
a quarter earlier but up 190 from a year ago. 300000

• No new retail space of any kind was completed in Milwaukee in

SQUARE FEET

200000
2009, a needed respite after 504,000 square feet of neighborhood
100000
and community center space came on line in 2008.
0
• Net absorption was negative 382,000 square
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09
feet through the first three quarters. -100000

• 30,400 square feet of neighborhood and community -200000

center space under construction for 2010 delivery.
-300000
• Net absorption of neighborhood and community center space is forecast to
remain negative through 2011, pushing the vacancy rate to a peak of 14.5%. -400000

• 2009 Year-end average asking rent is approximately $15.18 psf. QUARTER

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.