CBRE

FIGURES|MILWAUKEEINDUSTRIAL|Q42025

Largeleasetransactionsbolsteryear-end

marketactivity

4.8%

VacancyRate

1.1M

SFNetAbsorption

279,776

SFConstructionDelivered

Note:Arrowsindicatechangefrompreviousquarter.

SUMMARY

-IntheMilwaukeeIndustrialmarket,therewas1.1Msq.ft.ofpositivenetabsorptioninQ4.Year-to-date,themarkethasabsorbed4.9Msq.ft.,a51%increasefrom2024.

-Followingthree-consecutivequartersofhighabsorptionrates,themarketvacancyratedecreasedto4.8%inQ4,down70bpsfromthepreviousyear.

-Theconstructionpipelinedelivered279ksq.ft.ofnewconstructioninQ4.ThisbringstheYTDtotaltonearly2.9Mwithanadditional2.3Msq.ft.ofdevelopmentsunderway.ThereweretwoprojectsstartedinQ4,totaling125,400sq.ft.combined.

-Leasingactivityinthemarket,inclusiveofallsizes,totaled3.2Msq.ft.Leasingin2025

exceeded10.5Msq.ft,thehighestannualvolumesince2022.Largeleases,over300,000sq.ft.,drovedemandthisyear,increasinginvolumeby173%from2024.

-Investmentsalesvolumetotaled$128MinQ42025,bringingtheYTDtransactionvolumeto$648M.Annualsalesvolumeincreasedby29%year-over-year.ThelargestinvestmentsaleofthequarterwastheFurlaniFoodscampusinOakCreeksoldtoBroadstonefor$46.3M.

2.3M

SFUnderConstruction

$5.70

NNN/YRDirectLeaseRate

FIGURE1:HistoricalAbsorption,Deliveries,andVacancy

Sq.Ft.millionsVacancy%

7

6

5

4

3

2

1

0

4.5

4.0

3.5

3.0

2.5

2.0

1.5

1.0

0.5

0.0

(0.5)

NetAbsorptionDeliveriesVacancyRate

Source:CBREResearch,Q42025

1CBRERESEARCH?2025CBRE,INC.

FIGURES|MILWAUKEEINDUSTRIAL|Q42025

2CBRERESEARCH?2025CBRE,INC.

NetAbsorption

Netabsorptionwaspositive1.1Msq.ft.fortheMilwaukeeIndustrialmarketinthefourthquarter.Q4marksthethirdconsecutivequarterofover1Msq.ft.inabsorptionbutalsoadecreasefrompositive2.2Msq.ftinthepreviousquarter.Year-to-datethemarkethasabsorbed4.9Msq.ft.,a51%increasefromthepreviousyear.4.9Misalso287%higherthanthe5-yearaverageof1.2Msq.ft.

ThesubmarketwiththehighestabsorptioninQ4isMilwaukeeSouth,posting398ksq.ft.inpositivenetabsorption.FollowingwasKenoshaandWashingtonwithabsorptiontotaling275ksq.ft.and189ksq.ft.respectively.

Distribution/Logisticswarehouseproductledthemarketwith987ksq.ft.ofnetabsorptioninQ4.Therestoftheproducttypesabsorbedlessthan50ksq.ft.inQ4.Year-to-date,

Distribution/Logisticswarehouseproducthasabsorbed2.8Msq.ft.comparedto1.8Msq.ft.

fromManufacturingproduct.

ConstructionActivity

InQ42025,Milwaukeerecorded14projectsunderway,totaling2.2Msq.ft.Thisisa4.2%

decreaseintotalconstructionvolumeyear-over-year.Therearecurrently7speculative

projectsunderconstructiontotaling1.6Msq.ft.and7build-to-suitprojectstotaling564ksq.ft.ThereweretwoprojectsstartedinQ4,abuild-to-suitandspeculativeproject,totaling125,400sq.ft.combined.

Thelargestprojectunderwayisan418ksq.ft.speculativeproject.ThisprojectislocatedintheMilwaukeeSouthsubmarketandownedbyFrontlineCommercialRealEstate.Theexpected

deliveryofthisbuildingissetforMarchof2026.

ConstructiondeliveriesinQ4totaled279,776sq.ft,down53%fromthepreviousquarter.Overthelast3yearstherewasanaverageof1.3Msq.ft.deliveredquarterly.Ofthe3projects

deliveredinQ4,twowerebuild-to-suitandonewasaspeculativeproject.Theseprojects

includeGraffFaucetsinOakCreek,DynamicRating’sprojectinSussex,andLaser’sprojectinMenomoneeFalls.Year-to-date,therehasbeen20projectsdeliveredforatotalof2.9Msq.ft.ofnewinventory.

FIGURE4:NetAbsorptionTrend

Sq.Ft.millions

2.5

2.0

1.5

1.0

0.5

0.0

(0.5)

NetAbsorptionRolling4QAvg.

Source:CBREResearch,Q42025

FIGURE5:ConstructionActivity

Sq.Ft.millions

12.0

8.0

6.0

4.0

2.0

10.0

0.0

UnderConstructionDeliveries

Source:CBREResearch,Q42025

FIGURES|MILWAUKEEINDUSTRIAL|Q42025

3CBRERESEARCH?2025CBRE,INC.

AvailabilityandVacancyRates

TheMilwaukeeIndustrialmarketreportedavacancyrateof4.8%inQ4,adecreaseof30bpsfromthepreviousquarterandthelowestreportedquarterofvacancyoftheyear.

MilwaukeeWest,Kenosha,andRacinereportedthehighestvacancyratesofthequarter.Theyendedthequarterat14.5%,9.3%,and8.3%,respectively.TheWaukeshasubmarkets,Walworth,andSheboyganmaintainedthelowestvacancyrates,allreportingratesunder2%forQ4.

MilwaukeeSouthandWashingtonbothsawthelargestdropsinvacancythisquarter.VacancyinMilwaukeeSouthdropped90bpsto2.7%.Washingtonvacancysimilarlydropped90bpsto3.5%inQ4.

TheMilwaukeemarketavailabilityexperiencedadecreaseof30bpsat6%,downyear-over-yearfromtheQ42024rateof7.3%.Directavailabilitywasresponsibleforthedecrease,decreasingatotalof30bpsfrom5.9%inQ3to5.6%inQ4.Subleaseavailabilityrateremainedstagnantat

0.5%attheendofQ4.

AskingRent

IndustrialaskingrentssawaslightincreaseinQ4,settlingat$5.70.Thisratemarksa5.5%increaseyear-over-year,anda15.6%increasesincethestartof2023.

TheMilwaukeeSouthCentralandMilwaukeeWestSubmarketsrecordedthehighestaskingrentsinQ4,averaging$8.63and$8.40,respectively.FollowedcloselybytheWaukesha

Northwestsubmarketwhichrecordeda$7.26averageaskingrentinQ4.Incontrast,theMilwaukeeNorthCentralandWalworthSubmarketsreportedthelowestaskingrents

comparatively,at$3.69and$4.75,respectively.

FIGURE2:AvailabilityRates

AvailabilityRate(%)

8

6

7

5

4

3

2

1

0

一OverallDirectSublease

Source:CBREResearch,Q42025

FIGURE3:Avg.DirectAskingRate(NNN/YR)

6.005.805.605.405.205.004.804.604.404.20

4.00

$/SF

Source:CBREResearch,Q42025

FIGURES|MILWAUKEEINDUSTRIAL|Q42025

4CBRERESEARCH?2025CBRE,INC.

LeasingActivity

LeasingactivityintheMilwaukeeIndustrialmarket,inclusiveofallsizes,totaled3.2Msq.ft.

leased.Forleases50,000sq.ft.andlarger,thetotalactivitywas2.9Msq.ft.,up99%fromthepreviousquarterandsignificantlyhigherthanthe5-yearquarterlyaverageof1.97Msq.ft..Thisfigurebringstheyear-to-datetotalto10.5Msq.ft,thehighestyear-to-datetotalsince2022.

Leasingonbuildingsbuiltbefore2000ledtheactivitythisquarter,recording1.6Msq.ft.Thisfigurerepresents46.1%ofallactivityinQ4.Thetopdealsofquarterthewerebothover400ksq.ft.,Arienswitha601ksq.ft.renewalinKenoshaandVilterManufacturingwitha435ksq.ft.renewalinCudahy.

Leasingondealsover300,000sq.ft.wasthemaindemanddriverofthequarter.InQ4therewas1.67Msq.ft.ofthesedeals,contributingtoatotalof4.62Msq.ft.year-to-dateacross10leases.Thisvolumeis173%higherthanthe2024totalofarealeasedfromtheselarge

transactionsover300,000sq.ft.

99,991

WaukeshaNorthwest

136,693

WaukeshaSoutheast

300,410

Racine

1,142,116

Kenosha

1,237,850

MilwaukeeSouth

FIGURE6:LeasingActivitybySubmarket–Leases50,000sq.ft.andup

Source:CBREResearch,Q42025

FIGURE6:LeasingActivityTrend–Leases50,000sq.ft.andup

Sq.Ft.millions

3.0

2.5

2.0

1.5

1.0

0.5

3.5

0.0

Source:CBREResearch,Q42025

FIGURE8:KeyLeaseTransactions

Tenant

Sq.Ft.Leased

TransactionType

Address

Submarket

Ariens

601,439

Renewal

373784thAve

Kenosha

VilterManufacturing

435,695

Renewal

5555SPackardAve

MilwaukeeSouth

VisualPak

340,054

Renewal

9605136thAve

Kenosha

GrahamPackagingCo.

300,410

Renewal

7100DurandAve

Racine

Jackson'sFood

205,676

NewLease

10000SRidgeviewDr

MilwaukeeSouth

VikingElectricSupply

136,693

NewLease

5800SMoorlandRd

WaukeshaSoutheast

IndependenceCorrugated

120,000

Renewal

7475S.6thSt

MilwaukeeSouth

IndependenceCorrugated

112,144

Renewal

525W.MarquetteAve

MilwaukeeSouth

ArvatoUSA

108,362

NewLease

8505100thSt

Kenosha

AtomixLogistics

107,482

NewLease

100WOakwoodRd

MilwaukeeSouth

Source:CBREResearch,Q42025

FIGURES|MILWAUKEEINDUSTRIAL|Q42025

5CBRERESEARCH?2025CBRE,INC.

InvestmentSales

Investmentsalesvolumetotaled$128MinQ42025,bringingtheYTDtransactionvolumeto$648M,a29%increasefromthepreviousyear.Annualvolumein2025was11%higherthanthethree-yearaveragevolumeof$584M.

ThelargestinvestmentsaleofthequarterwastheFurlaniFoodscampusinOakCreek,

involvingthreepropertiessoldtoBroadstonefor$46.3M.Thisrepresentsthethirdlargestinvestmentsalein2025.

Portfoliosalesaccountedfor15%oftheinvestmentsalesvolumein2025,a25%increaseinvolumecomparedtothepreviousyear.Individualpropertysalessawa55%increasein

volumeyear-over-year.In2025,buyercapitalcompositionwaspredominantlyfromprivategroups(60%)withinstitutionalandREITgroupscomprising37%.

FIGURE9:TopInvestmentSalesYTD2025

AddressCityBuyerSalePriceSize(SF)PricePerSF

Gladstone

CommercialCorp

W206N12880GatewayCtRichfield62,700,000303,991$206.26

FIGURE10:HistoricInvestmentSalesVolume

Rolling4-QuarterVolume

QuarterlyVolume

1800M

1600M

1400M

1200M

1000M

800M

600M

400M

200M

0

Volume($)

Q1Q2Q3Q4

Q1Q2Q3Q4

Q1Q2Q3Q4

Q1Q2Q3Q4

2022

2023

2024

2025

FIGURE11:TopInvestmentSalesQ42025

Source:CoStar,RCA,CBREResearch,Q42025

Furlani'sFoodCorpPortfolio

(3PropertyPortfolio)

46,300,000

76,760

249.98

$

OakCreek

BroadstoneNetLease

16555WStrattonDrive

NewBerlin

LutherGroup

18,500,000

171,506

$

107.87

SaelensCorporationPortfolio

Milwaukee

RoyalOakRealtyTrust

16,400,000

185,000

$

88.65

*9160N107thSt,

8301WParklandCt

130-150EdgertonAve–

Recapitalization

Milwaukee

BrennerInvestmentGroup

12,800,000

321,124

$

39.86

10303NBaehrRd

Mequon

MilwaukeeILlc

7,640,000

98,336

$

77.69

AddressCityBuyerSalePriceSize(SF)PricePerSF

*N116W15970MainSt,

N120W190000FreistadtRd,

W160N11736CrusaderCt

Germantown

NewMountainCapital

59,500,000

356,400

$

166.95

Furlani'sFoodCorpPortfolio

(3PropertyPortfolio)

OakCreek

BroadstoneNetLease

46,300,000

76,760

$

249.98

120WOpusDr-

Recapitalization

(3PropertyPortfolio)

OakCreek

PalmerLogisticsMidwest

1AssetsLlc

36,000,000

279,828

$

128.65

5333-5349SEmmerDr,

5400-5420SWestridgeDr,

9705SOakwoodParkDr,

9630-9644S54thSt

New

Berlin/Franklin

ZilberGroup

33,800,000

402,967

$

83.88

Source:CoStar,RCA,CBREResearch,Q42025*PartofalargernationalportfolioacquisitionSource:CoStar,RCA,CBREResearch,Q42025*Partofalargernationalportfolioacquisition

FIGURES|MILWAUKEEINDUSTRIAL|Q42025

6CBRERESEARCH?2025CBRE,INC.

MarketStatisticsbySize

NetRentableArea

TotalVacancy

TotalAvailability

DirectAvailability

SubleaseAvailability

Avg.DirectAsking

Rate(NNN/YR)

CurrentQuarterNet

AbsorptionYTDNetAbsorption

Deliveries

UnderConstruction

Under100,000sq.ft.

96,499,425

1.6

2.0

1.9

0.1

5.78

195,718268,768

40,670

387,719

100,000-199,999sq.ft.

65,843,242

2.3

4.4

4.0

0.5

5.36

484,2921,080,873

239,106

359,560

200,000-299,999sq.ft.

33,777,128

7.1

9.6

8.4

1.2

6.16

300,3711,875,658

0

754,124

300,000-499,999sq.ft.

44,441,792

7.1

10.4

9.3

1.1

5.33

84,842927,239

0

755,511

500,000-749,999sq.ft.

28,464,999

10.4

9.0

8.6

0.4

5.25

0795,026

0

0

750,000sq.ft.

39,987,779

8.4

8.4

8.4

0.0

6.47

00

0

0

Total

309,014,365

4.8

6.0

5.6

0.5

5.70

1,065,2234,947,564

279,776

2,256,914

MarketStatisticsbyProductType

NetRentableArea

TotalVacancy

TotalAvailability

DirectAvailability

SubleaseAvailability

Avg.DirectAsking

Rate(NNN/YR)

CurrentQuarterNet

AbsorptionYTDNetAbsorption

Deliveries

UnderConstruction

Distribution/Logistics

119,822,866

8.8

10.8

10.0

0.8

5.75

987,5802,834,917

179,776

900,588

Manufacturing

144,870,484

2.6

3.3

3.1

0.2

4.99

22,9771,833,702

100,000

569,855

R&D/Flex

32,292,517

0.9

1.3

1.3

0.0

5.44

32,99480,756

0

0

OtherIndustrial

12,028,498

3.0

4.6

3.3

1.3

9.01

21,672198,189

0

786,471

Total

309,014,365

4.8

6.0

5.6

0.5

5.70

1,065,2234,947,564

279,776

2,256,914

FIGURES|MILWAUKEEINDUSTRIAL|Q42025

7CBRERESEARCH?2025CBRE,INC.

MarketStatisticsbySubmarket

Avg.DirectAskingCurrentQuarterNet

NetRentableArea

TotalVacancy

TotalAvailability

DirectAvailability

SubleaseAvailability

Rate(NNN/YR)

Absorption

YTDNetAbsorption

Deliveries

UnderConstruction

Kenosha

50,793,535

9.3

11.9

10.9

1.0

5.38

275,103

2,067,928

0

400,107

MilwaukeeDowntown

10,080,223

7.1

7.4

6.4

1.0

6.64

0

(98,348)

0

0

MilwaukeeNorthCentral

10,475,121

3.9

8.9

8.9

0.0

3.69

(53,000)

(26,103)

0

0

MilwaukeeNorthShore

5,545,629

5.1

7.0

7.0

0.0

6.87

14,994

(197,585)

0

0

MilwaukeeNorthwest

21,023,229

3.9

4.7

4.0

0.7

5.35

52,814

(88,981)

0

0

MilwaukeeSouth

32,622,335

2.7

3.0

2.8

0.2

6.71

398,035

739,732

100,000

755,511

MilwaukeeSouthCentral

12,086,268

8.1

8.7

6.8

1.9

8.63

(37,757)

662,823

0

0

MilwaukeeWest

12,109,642

14.5

15.2

14.9

0.3

8.4

0

154,685

0

50,000

Ozaukee

10,731,545

4.4

4.7

4.7

0.0

5.49

(403)

(309,195)

0

0

Racine

30,859,441

8.3

12.1

11.0

1.1

5.53

(50,863)

298,804

0

142,560

Sheboygan

17,397,449

0.0

0.0

0.0

0.0

0

278,352

0

50,000

Walworth

10,137,737

0.0

0.1

0.1

0.0

4.75

40,629

50,344

0

0

Washington

21,417,177

3.5

4.0

4.0

0.0

6.06

189,529

581,165

0

289,536

WaukeshaNortheast

17,560,361

0.0

0.3

0.3

0.0

6.35

40,670

348,029

40,670

100,000

WaukeshaNorthwest

18,630,393

1.5

2.1

2.1

0.0

7.26

153,837

53,397

139,106

40,000

WaukeshaSoutheast

14,221,034

1.3

0.4

0.4

0.0

6.87

0

223,953

0

85,400

WaukeshaSouthwest

13,323,246

0.8

0.8

0.8

0.0

5.73

41,635

208,564

0

343,800

Total

309,014,365

4.8

6.0

5.6

0.5

5.7

1,065,223

4,947,564

279,776

2,256,914

FIGURES|MILWAUKEEINDUSTRIAL|Q42025

8CBRERESEARCH?2025CBRE,INC.

MilwaukeeEmploymentUpdate

EmploymentChangebySector–Yearly+MonthlyBarsindicateyearlytrend,arrowsindicatemonthlytrend

3.0%

UnemploymentRate

0.8MLaborForce

179.6k

OfficeUsingJobs

NationalEconomicOverview

TheU.S.economyissendingsomemixedsignals.Financialmarketsarefocusedontheupside,particularlyAI’ssizablecontributiontogrowthinrecentquarters.Some

indicatorsofbusinessactivity,suchascapitalgoodsorders,areimproving,and

strengtheningcreditmarketsarehelpingtousherrealestateintoanewcycle.Thepicturegetsmoremelancholywhenlookingathouseholds.Consumerconfidenceremainsweak,withspendingreportedlydrivenbyasmallersegmentofaffluent

households.

293.5k

IndustrialUsingJobs

110.8k

RetailUsingJobs

Source:USBLS,September2025

ThismosaicofdatasuggeststhatannualaverageGDPgrowthwillbesteadyin2026,at2%,butatouchsofterthanin2025.Akeycatalystisasofterlabormarket,as

companiesare‘slowtohire,slowtofire’—atrendthatislikelytolastafewquarters.Aconsequenceofthisoutlookissofterinflationandlong-termbondyieldstrendingjustbelow4%byH22026.

MilwaukeeUnemploymentRateandLaborForceTrends

Source:USBLS,September2025

FlGURES|MlLWAUKEElNDUSTRlAL|Q42025

MarketAreaOverview

are

ver

of

Definitions

AvailableSq.Ft.:Spaceinabuilding,readyforoccupancywithinsixmonths;canbeoccupiedorvacant.AvailabilityRate:Total

AvailableSq.Ft.dividedbythetotalbuildingArea.AverageAskingLeaseRate:Acalculatedaveragethatincludesnetandgross

leaserate,weightedbytheircorrespondingavailablesquarefootage.BuildingArea:Thetotalfloorareasq.ft.ofthebuilding,

typicallytakenatthe“dripline”ofthebuilding.GrossActivity:Allsaleandleasetransactionscompletedwithinaspecifiedtimeperiod.Excludesinvestmentsaletransactions.GrossLeaseRate:Renttypicallyincludesrealpropertytaxes,buildinginsurance,

andmajormaintenance.NetAbsorption:ThechangeinOccupiedSq.Ft.fromoneperiodtothenext.NetLeaseRate:Rent

excludesoneormoreofthe”net”costs(realpropertytaxes,buildinginsurance,andmajormaintenance)typicallyincludedinaGrossLeaseRate.OccupiedSq.Ft.:BuildingAreanotconsideredvacant.VacancyRate:TotalVacantSq.Ft.dividedbythetotal

BuildingArea.VacantSq.Ft.:Spacethatcanbeoccupiedwithin30days.ClassAindustrialarebuildingsbuiltafter2000,with32,orgreaterclearheightandESFRsprinklers.

SurveyCriteria

lncludesallindustrialbuildings30,000sq.ft.andgreaterinsizeinMilwaukeecounties.Buildingswhichhavebegunconstructionasevide