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

com

2010 Milwaukee Office Investor

Q1 RESEARCH REPORT
Milwaukee Office Vacancy Rate Trends and Forecasts Milwaukee Asking Rent
21.00% $18.85

20.00%
$18.80
% CHANGE IN VACANCY

19.00%

18.00% $18.75

QUARTER
Milwaukee
17.00% Midwest
$18.70
US
16.00%
$18.65
15.00%

14.00% $18.60

13.00%
$18.55
12.00% 1Q09 2Q09 3Q09 4Q09 1Q10
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

YEAR (source REIS) ASKING RENT (source REIS)

Inventory Growth Rates Comparison Milwaukee Office Vacancy Rate Trends and Forecasts
0.00% 21.00%
Milwaukee Midwest US
% CHANGE IN GROWTH RATE

20.00%
% CHANGE IN VACANCY

-0.05% 19.00%

18.00%
4Q09 Milwaukee
-0.10% 1Q10 17.00% Midwest
YTD Avg US
16.00%
-0.15%
15.00%

14.00%
-0.20%
13.00%

12.00%
-0.25% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

GEOGRAPHY (source REIS) YEAR (source REIS)

Points of Interest From Reis Milwaukee Net Office Absorption

• 2 009 ended with an overall negative net absorption rate of 100000

415,000 square feet. 2010 is forecasted to also end with a 50000

negative net absorption rate of around 357,000 square feet. 0
• Class A took the largest vacancy hit with a negative net absorption
SQUARE FEET

1Q09 2Q09 3Q09 4Q09 1Q10

-50000
around 438,000 square feet, increasing the vacancy to 16.5%.
• The vacancy rate of Class B/C fell to 19.8% upon the -100000

assumed migration from Class A to B/C facilities. -150000

• Overall, 2009’s vacancy rate was 18.3% which included a 20-basis-point gain -200000
in the fourth quarter. Preliminary 1st quarter data bumps the rate to 18.9%.
-250000
• Rents continued to decline in 2009, falling over 0.5% to $18.76
per square foot (with stable rates in 4th quarter). -300000

• Rents are forecasted to drop 0.6% down to $18.64 psf in the 1st quarter. QUARTER (source REIS)

YOUR OFFICE GROUP

Marianne Burish, MBA John Dulmes Nicole Hawley Daniel Mickelsen Daniel Walsh, JD
mburish@sg-re.com jdulmes@sg-re.com nhawley@sg-re.com dmickelsen@sg-re.com dwalsh@sg-re.com
414.270.4109 414.270.4132 414.270.4106 414.270.4104 414.270.4112

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.