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1st Qtr 2021 Newsletter

April 07, 2021

                                                                                                                                                                         1st Quarter 2021

 

Team Judson Editorial:

Industrial Real Estate: Where Did All The Inventory Go?!

Multiple counter offers, above asking price offers, sight unseen offers....this sounds like the beginning of an article describing the residential real estate market.  Not today! These terms are now being used in the industrial real estate market. The sustained low vacancy rates combined with continued economic growth is causing the industrial real estate market to become increasingly competitive.

The fresh Q1 numbers are in. Surprisingly, the vacancy rate for SE WI slightly increased from 4% to 4.3% with our primary market of Waukesha County increasing 2.4% to 2.8%.  However, a deeper look at the statistics show that the vacancy rate is so low that if 1 or 2 large companies move, that can move the needle by 15%!  For example in Q1, Quad Graphics vacated a large warehouse in Menomonee falls.  This single move of almost 400,000 SF accounted for most of the increased vacancy SF.  The point of this explanation is to highlight the fact that the vacancy level is so low that small and medium sized spaces are at near zero vacancy.  In addition, there is a supply shortage for building so material costs has pushed construction costs up.  The combination of low supply and the increasing cost of new construction are pushing up the values of existing real estate.

What does this mean for Buyers (or Tenants)?  Start looking early and be prepared to look in a wider geographic area as supply is constrained.  Be ready to act if you find a suitable property.  Now it is more important than every to have a good team helping you.  This includes all persons that may be involved in the process: your banker, attorney and of course your Real Estate Agent!  We are seeing more deals with competing offers so the Buyer that is most prepared will have the best chance to secure the property while not making potentially costly mistakes. Also, the right agent should be able to bring you more options which includes ensuring you are one of the first into a new listing, bringing opportunities to you that may not be on the market yet, or thinking outside the box to find an opportunity that may be a great fit that is slightly outside of your described parameters.

How about for Seller (Landlord)?  Congratulations!  You have decided to sell (or lease out space) in a strong market!  If your sale or industrial lease is handled correctly you should enjoy the benefits of finding a buyer or tenant in an up market.  This should include less time on the market, a quicker closing, higher price and less discounts. However, there are a lot of Buyers that will try to take advantage of Sellers that do not know the market.  A good agent will weed

out those Buyers and make sure you sell for the best possible terms.  Landlords are also benefiting from longer lease terms, less rental concessions and higher rents. Again, Landlords should discuss their needs with a good agent.  Entering into a poor lease can actually reduce the value of a property and could be very costly for the Landlord in the end.

-Mark Gorski, Principal Sales Agent

Introducing our newest team member:

Liz Pfaff!

Liz will assist J&A Property Management Services as a Portfolio Manager. 

Click here or on her photo to learn more about Liz.

                                                                  

              Single or Multi-Tenant Office Building Available FOR SALE!

     Enjoy our latest Video Tour of N17 W24300 Riverwood Drive, Pewaukee

        

Click the photo to enjoy a virtual tour!

 

                             Below are the Quarterly Office and Industrial Reports for our Greater Milwaukee Area:

                                                                  

Long Time Owner - Newer Investor

After a long history of leasing the building at 4568 N 125th St in Butler with Judson and Associates, s.c. our client decided to sell.  The team of Mark Gorski and Cole Russell assisted the seller organize his leases and work through his largest tenant.  Mike Steiner was able to bring in a Buyer that wanted to move in and implement some new plans for the property.  The sale closed and both Buyer and Seller were able to shake hands and move forward with their goals.

Green Bay Packaging Inc. Expands

Green Bay Packaging was in need of additional space for a specific seasonal project.  After reviewing options and touring it was determined that they may need more long term space to help with their current growth.  Matt Judson was able to identify a great opportunity that will now allow Green Bay Packaging to grow within the greater Milwaukee market.  Congratulations!

Land For New Headquarters

Matt Judson assisted Hydro Excavators LLC in finding a parcel of land in Vernon to develop their new SE Wisconsin Headquarters. Hydro Excavators provides excavation services to many municipalities, utility companies and developers when needing an alternative to traditional excavation.  It was a pleasure to work with both the Seller and Buyer in this transaction and we are excited to see the new headquarters when built!

 

Badger Brothers Moving's 2nd Location

Will Schlosser and Mark Gorski of Judson and Associates, s.c. welcome Badger Brothers Moving to their new location in the greater Milwaukee area.  After talking with many local agents Bader connected with Will.  Will understood their unique parking needs and showing Badger a selection of properties that would fit their requirements.  The Westmound Drive, Pewaukee location was chosen due to its easy freeway access and above average parking area.  Mark, was able to assist in putting the transaction together by representing the Landlord and keeping his portfolio 100% occupied!

City of Beaver Dam's New DPW Building

A client with whom Judson and Associates, s.c. has had a long term relationship with tasked Matt Judson and Mike Judson with selling his property at 238 Commercial Drive in Beaver Dam.  The sale began as an investment opportunity as the 28,954 SF industrial building was leased to a single user tenant.  During the COVID pandemic the Tenant's plans changed, which left the owner with an empty building.  At the same time, Beaver Dam's DPW was looking for a new location that would meet their needs while being financially responsible. The DPW decided to purchase the building and will be able to add a 51,000 SF addition.  A win-win for both the Seller and City of Beaver Dam! Click HERE to read an article about the purchase. The Seller and Judson Team are excited to see the finished product!

           

S33W23105 & S33W23115 Wynn Drive, Big Bend

14,000 SF Front Building with 5 Drive-in Doors

7,000 SF Rear Building with 3 Drive-in Doors

Sale Price: $1,300,000   SOLD!

2100 Pewaukee Road, Unit E, Waukesha

5,000 SF Industrial Space

2,200 SF Office / 2,800 SF Warehouse

1-12'x14' Drive-in Door

Lease Rate: $6.75 PSF NNN  LEASED!

407 Pilot Court, Waukesha

7,274 SF to 20,000 SF Industrial Space Available

Dock Door(s) with Levelers

Clear Height: 18'

Lease Rate: $6.75 PSF NNN                      

3110 Watford Way, Madison

10,062 SF Industrial Space

.5798 Acres

1-23'x12' Drive-In Door with External Load Dock Platform

Sale Price: $640,000   SOLD!

255 Info Highway Court, Slinger

3,000 SF - 15,632 SF Industrial Space Available

Drive-in Doors Available (1-14'x14', 1-12'x14')

Lease Rate: $4.50 - $8.50 PSF NNN

Sale Price: $1,500,000

W226 N887 Eastmound Dr, Pewaukee

7,680 SF Industrial/ Space

1 - 8'x8' Dock Door

Power: 240 Volt, 800 Amp, 3 Phase

Lease Rate: $6.50 PSF NNN

275 Regency Court, Brookfield

1,865 SF - 9,220 SF Office / Retail Suites Available

Exceptional location adjacent to Bluemound Rd

Ample Natural Light Throughout

Lease Rate: $13.00 - $15.00 PSF Gross           

1507 E Sunset Drive, Waukesha

Multiple Office Suites Available

Sizes from 606 SF to 5,722 SF

Traffic Count: 28,200 Vehicles Per Day

Lease Rate: $14.25 PSF Gross

N27 W23676 Paul Road, Pewaukee

29,634 SF Industrial/Office Building

Clear Height: 19'-20'

1 Dock with Leveler / 1-10'x9' Drive-in Door

Sale Price: $2,500,000

Lease Rate: $7.00 PSF NNN

7625 S Howell Avenue, Oak Creek

16,636 Industrial/Office Building

Additional 3,500 SF Outbuilding

3.61 Acres - Provides Expansion Possibilities

1 Dock with Platform / 1-10'x10' Drive-in Door

Sale Price: $1,650,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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