MILWAUKEE, May 14, 2026 — Marcus & Millichap (NYSE:MMI), has published its Milwaukee Industrial Investment Midyear 2026 Outlook report.
“Milwaukee’s industrial sector continues to demonstrate resilience as expanding tenant demand, declining vacancy expectations and strong investor interest position the market for sustained momentum through 2026,” stated Todd Lindblom, senior managing director and market leader.
Key findings include:
- Expanding infrastructure investment is reinforcing industrial recovery momentum, with more than 4 million square feet of move-outs in the first half of 2025 pushing vacancy to 6.0 percent despite elevated deliveries. Investor optimism is also supported by major developments tied to Milwaukee Mitchell International Airport and regional manufacturing expansion.
- Small-bay warehouse demand remains especially strong, driven by local manufacturers and smaller tenants seeking flexible space options. Vacancy in facilities under 50,000 square feet remains below market averages, supporting stable leasing fundamentals.
- Institutional investment activity is increasing as record numbers of industrial properties trade above the $10 million threshold. Investors are targeting well-located assets in Milwaukee and Waukesha counties as leasing demand improves and cap rates remain attractive.
- Construction completions are forecast to decline significantly in 2026, with deliveries expected to fall by 35 percent year over year to approximately 1.3 million square feet. Reduced supply pressure is anticipated to help vacancy decline for the first time in five years.
- Employment growth and ongoing tenant expansion are expected to support rent gains, though at a slower pace as newly vacant speculative space creates additional competition. Average asking rents are forecast to reach $6.23 per square foot in 2026.
“Milwaukee’s combination of industrial expansion, improving absorption trends and renewed capital market activity continues to attract investor attention, particularly as uncertainty around interest rates persists,” added Lindblom.
Access the report here.
