The American Center Business Park on Madison’s east side is adding housing to its 447-acre property to boost its appeal to prospective, potentially younger tenants, according to the Wisconsin State Journal. The business park is home to nearly 90 commercial tenants currently.
Developers citywide are shifting their priorities from solely building office space to instead focus on a combination of housing, retail space, offices, and other amenities, particularly as the demand for offices has fallen off post-pandemic. Madison’s office vacancy rate at present is around 12%; a health office vacancy rate runs between 5–10%. The demand for housing is also skyrocketing amid the city’s shortage, and developers are working to attract younger people who want to live, work, and play without a long commute.
American Center’s commercial tenants include medical clinics, banks, hotels, and associations like the State Bar of Wisconsin, among others. The business park’s office vacancy rate is 14%. There are also five retail tenants and one finished market-rate apartment complex, The Elevate, located at 5022 American Parkway. The Elevate has 270 units, a business center with two private meeting rooms and a conference room, an activity courtyard with a fire pit, a club room, a pool, and a fitness center.
The park hopes to increase its retail tenants in the coming years as it adds more market-rate housing projects, according to a master plan created over five years ago by American Family Insurance, the park’s owner.
Two four-story buildings with 67 units each are under construction at 4846 Eastpark Blvd., connected by a two-story commons area. The development is set to include a private park and other outdoor recreation amenities. Plans for the common area include a pool, meeting spaces, a business center, and a community room.
Also in the works near that location are a five-story, mixed use building with around 7,600 square feet of commercial space and 119 apartment units and a four-story, 82-unit market-rate apartment building. Its amenities include a community room, a roof deck, and grilling and outdoor seating areas.
