Southeastern Wisconsin’s industrial real estate market finished 2025 on strong footing, posting positive absorption and a declining vacancy rate in the fourth quarter.

According to the latest report from the Commercial Association of Realtors Wisconsin (CARW) and Moody’s, the region’s industrial space vacancy rate fell to 5.3% in the fourth quarter, down from 5.7% in Q3, 6.2% in Q2 and 5.7% in Q1.

The region absorbed 2.1 million square feet of industrial space during the fourth quarter, driven largely by warehouse leases in Kenosha, Racine, Waukesha and Washington counties. Total industrial space absorption for the year reached 5.4 million square feet in southeastern Wisconsin, which is the highest annual total since 2022.

Milwaukee County led fourth-quarter absorption, highlighted by Independence Corrugated’s 150,000-square-foot lease.

“As the market moves into 2026, southeast Wisconsin’s industrial sector remains on solid ground, with tenant demand steady though modestly softer,” said Cole Russell, senior vice president at Pewaukee-based Judson & Associates. “Availability has edged higher, but disciplined development and ongoing construction continue to signal confidence in the region’s long-term industrial fundamentals.”

Read more in the BizTimes.