Q1 2019 Madison Market Report

Madison office fundamentals have been relatively strong this cycle. Vacancies were compressed to a new all-time low of roughly 4.5% in 19Q1. This followed a temporary expansion early last year as the Wisconsin Dept. of Transportation began taking occupancy of its newly delivered 600,000-SF property in phases. In fact, the government occupied office facility was the largest of its kind to deliver in the past decade when it came on line in 18Q2. Roughly 1.3 million SF came on line in 2018, setting a cycle high for deliveries. Though close to 300,000 SF was under construction and due to deliver in the first half of 2019, it was almost fully preleased as of 19Q1.