Wisconsin’s commercial property real estate market has struggled to overcome the same challenges faced by commercial property owners and developers all over the country since COVID-19 forced us all to shut down.

Although we have opened back up, things have yet to return to the way they were pre- COVID.

Many employees want to continue working from home, at least part time.

Interest rates have risen, which has made people hesitant to invest in new office space, much less new developments, until we can get assurance that interest rates are done rising for the foreseeable future.

Despite the struggles, the commercial property industry in Wisconsin is doing well overall, so let’s take a look at what we can learn from the success stories:

Business Is Booming … Downtown

While Milwaukee is not new as a favored location for companies looking for office space for their headquarters or regional offices, what is new is the preference for downtown locations.

While many large companies have maintained offices in Milwaukee’s suburbs and surrounding neighborhoods for years, there is a definite trend of those companies moving their offices downtown.

It’s not hard to see why. At a time when companies are struggling to convince workers to come back into the office, downtown offices have a lot to offer that suburban office space doesn’t, including easy access, especially for employees living downtown. They also tend to be closer to in-demand amenities, such as daycare, gyms, and restaurants.

Companies Are Downsizing … Somewhat

Despite the high number of people who want to continue working from home, many companies are requiring their employees to return to the office, even if it’s only 2-3 days a week.

This is good news for the owners and developers of office buildings who need companies to continue to invest in office space.

While there is a trend towards downsizing office space, studies show that employees prefer to have their own, assigned desks, rather than “renting” a desk on the days they’re in the office. This means companies still need enough office space for each employee to have their own desk, so they’re not downsizing as much as they would be if they only needed enough space for the employees who would be in the office on any given day.

Certain Types of Office Spaces Are in Demand

While you might assume the increase in employees demanding to work remotely would cause the supply of office space to go up while demand takes a nosedive, that’s not entirely true.

On the one hand, Class B office space vacancies are at an all-time high.

On the other hand, Class A office space vacancies are much lower – only about 14% according to REjournals.com.

Many companies using Class B office space are desperate to upgrade to Class A but can’t get out of their lease or find an available space that meets their needs.

This is where Compass Properties comes in to save the day. As a privately held, Wisconsin-based company that develops, manages, and invests in commercial properties throughout central Wisconsin, we take pride in providing our clients with the highest-quality commercial properties available.

We have committed to developing and maintaining high-quality office spaces that meet the needs of the moment, as well as the unique needs of each of our clients.

Our buildings take advantage of the newest technology to provide all the latest, most in- demand amenities.

If your company is in need of commercial real estate and you can’t find what you’re looking for, we’d love to talk with you about your needs.