MADISON STREET BEAT– Q1/23

Madison office occupancy, while down year-over-year, remains one of the highest among midsize and major markets, with the national average at 87.1%. A strong base of local, fast-growing companies in the science and technology sectors continues to bolster the office market. Madison’s rapid population growth has also led to several vacant or low-performing office buildings targeted for redevelopment into apartments which has pulled inventory off the market.

Increased pressure from rising interest rates led to a significant slowdown in office investment activity to start 2023. This is in sharp contrast to the previous 2 quarters which, combined, saw over $100M in total sales volume, with Q4 2022 being the most active quarter in the market since Q4 2017. Pricing disconnect between buyers and sellers remains evident with the total number of sale listings currently at a 15-year low.

Madison Street Beat  is a snapshot of key metrics for the Madison area office space market developed by Compass Properties. Information contained in this report is general with regard to the subject matter and should not be construed as a recommendation to make any real estate investments or any other financial transactions.  Neither Compass Properties nor any of its employees and agencies warrant the accuracy or assume any liability for information contained in this report.