Record high construction activity and new deliveries continue to drive market activity
The industrial market in southeastern Wisconsin started off 2019 strong with a good Q1 and now a solid Q2. Vacancy increased slightly as a result of new deliveries, but the market continues to absorb new product well as a result of user expansions and users continuing to enter the market for the first time. Kenosha and Pleasant Prairie saw more users announce plans to enter this active corridor. Other submarkets continue to have strong activity as well, with new business parks such as I-43 Business Park, Mukwonago Business Park and Germantown Gateway Business Park all announcing new users, buildings or approvals in Q2. Through the end of the year, market indicators will likely remain relatively flat, with the existing product market unlikely to experience any major shifts. New construction and deliveries will continue to drive large market activity and is expected to remain strong for the remainder of 2019.