Industrial Real Estate Booms Amid Supply Chain Crisis

In a recent government meeting, discussions centered on the booming industrial real estate sector in southeastern Wisconsin, highlighting significant growth and ongoing challenges. A key speaker noted that the COVID-19 pandemic catalyzed a surge in industrial real estate development, with more space being constructed between 2021 and 2023 than in any previous period. This growth is attributed to increased online shopping and home improvement activities during the pandemic, which in turn exacerbated supply chain issues that benefited the industrial sector.

The speaker pointed out the proliferation of large-scale industrial facilities, including a notable 3.8 million square foot building announced by Amazon in Madison. Other developments are underway in various locations, including Germantown and Green Bay, contributing to a robust industrial landscape. However, the speaker cautioned that finding suitable industrial land is becoming increasingly difficult, citing a particularly problematic site on Holton Avenue that has been deemed unbuildable due to pollution.

Despite these challenges, reshoring efforts are reportedly yielding positive results, with many companies choosing to bring jobs back to the region rather than relocating them elsewhere in North America. The speaker emphasized that the local industrial real estate market remains strong, particularly in suburban areas like Glendale and the Milwaukee metro region, where vacancy rates are virtually nonexistent and prices are rising.

Overall, the industrial real estate market in southeastern Wisconsin is characterized by steady demand and low unemployment, positioning it as a favorable environment for future investments. The meeting concluded with an optimistic outlook for continued growth in the sector.