7 Spec Industrial Buildings Under Construction Now in Madison

As mentioned in previous posts, vacancy in the Madison industrial market is at miniscule levels (2.8%). This has implications in both the sale and lease markets, with many space users not finding what they need for their expanding businesses. Other markets around the country are experiencing similar issues but our vacancy rate is among the lowest around.

The good news is that developers are responding, with 780,000 square feet under construction now. Moreover, in the coming months, we expect to see a few more buildings break ground that aren't included below. About 40% of the space has signed leases already and several other large tenants are close to finalizing deals.

Below is a summary of each offering in order of timing for shell completion:

January 2022: Southeast; 36,200 SF flex by Newcomb Construction at 5033 Tradewinds Parkway in Madison.

January 2022: Southeast: 86,400 SF flex building by Wisconsin Data Partners at 3302 Dairy Drive in Madison.

February 2022: Southeast; 43,700 SF warehouse by Marshall Park Investments at 4725 Tradewinds Parkway in Madison.

May 2022: Northeast; 106,800 SF Class A warehouse by Interstate Partners at 2955 Innovation Way in Sun Prairie.

July 2022: Southeast; 202,800 SF Class A warehouse by at Ruedebusch Development at 3802 Galleon Run in Madison.

August 2022: Northeast; 122,000 SF Class A warehouse by Greywolf Partners at 6305 Ronald Reagan Ave in Madison.

October 2022: Northeast; 184,100 SF Class A warehouse by Interstate Partners at 2925 Innovation Way in Sun Prairie (fully pre-leased).

Please get in touch with me if you would like to learn more about the Madison industrial market. Thoughts and comments within LinkedIn are always appreciated.

Definitions:

Class A warehouses are designed for tenants of at least 20,000 square feet. These buildings are (minimum) 24' clear or taller pre-cast concrete buildings with ESFR sprinkler systems, wide column spacing, bay depths of 200' or more, 480-volt power, and mainly dock-high loading doors. Rents in the Madison market start at $6.50 per square foot NNN with or without a modest allowance toward build-out.

Flex industrial buildings are designed for tenants of 4,000 to 20,000 square feet. These buildings generally have lower clear heights, ordinary hazard sprinkler systems, narrower column spacing, shallower bay depths, 208-volt power, and an equal mix of docks and drive-in doors. Rents in the Madison market start at $7.50 per square foot NNN including a minimal fit-up package.