Speculative deliveries result in market-wide vacancy increase, but based on activity over recent quarters, these new spaces will not last long.
Following a strong finish to 2021, the Southeastern Wisconsin industrial market continued to see high demand for space to kick off 2022. Due to a handful of speculative deliveries, market-wide vacancy increased in Q1, however, net absorption for the quarter was positive 940,555 square feet due to a few larger move-ins and build-to-suit deliveries. The speculative construction pipeline will continue to have an impact on vacancy throughout the year, particularly in the Central and South submarkets.