Milwaukee Office Figures Q1 2026

- The Milwaukee office market recorded (49,000) sq. ft. in Q1, marking the first negative quarter in a year. Absorption at Class A was positive 34,000, offset by (84,000) sq. ft. of vacancies in all other classes.

-Market vacancy was 18.8%, an increase of 10 bps from the previous quarter. While the vacancy rate was impacted by two large sublease expirations, the availability rate decreased by 110 bps, down to 20.2% this quarter.

-The average FSG direct lease rate was $22.13 across the full market, demonstrating a 2.9% increase year-over-year. Class A rates rose to $25.49 with Class B reported at $19.91

-In Q1, Milwaukee had 152,000 sq. ft. of total leasing activity, a 71% increase from the previous quarter and a 97% increase year-over-year. The average lease area increased by 35% from the previous year, a signal that tenant footprints are stabilizing.

-The quarterly office sales volume was $43.4 million in Q1. The largest transaction in Q1 was a user-sale to Walbec Group for a new headquarters at 1425 Discovery Pkwy in Wauwatosa.