The latest Cushman & Wakefield | Boerke report on Wisconsin’s second-quarter investment shows a mixed outlook, with high interest rates still weighing on the state’s real estate capital markets but strong demand persisting across multiple asset classes, driving investment opportunities. Stability is prevailing in the multifamily market despite existing concerns. Retail is the preferred asset class among institutional investors.
Other key statewide findings for Q2 of 2024 include:
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A total of 110 properties were sold across the industrial, office, retail, and multifamily sectors, generating a $384 million gross sales volume;
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Year-to-date transaction volume is at $778.1 million — a 40% decrease year-over-year due to a difficult financing environment;
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Industrial and multifamily space markets — Wisconsin’s strongest — have seen the largest decline in sales volume, down 46% and 65% year-over-year, respectively;
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The retail sector saw the highest percentage of sales volume for the second straight quarter, accounting for 41% of total sales;
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The overall market cap rate went up by 76 basis points year-over-year to 7.36% due to high interest rates but has steadied around 7–8% since rising by roughly 200 basis points in 2022;
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The largest year-over-year cap rate increase was in the office sector at 159 basis points, followed by multifamily at 127, retail unchanged, and industrial down 63;
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The retail market saw several shopping centers sold; and
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Sale-leasebacks remain popular in the industrial market.
