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W W W. R E J O U R N A L S . C O M
JULY/AUGUST 2022 VOLUME34
ISSUE4
CRE MARKETPLACE PAGE 29: ARCHITECTS/DESIGN-BUILD FIRMS
ASSET/PROPERTY MANAGEMENT FIRMS DEVELOPERS FINANCE & INVESTMENT FIRMS CONSTRUCTION/PROJECT MANAGEMENT
Still fighting: Milwaukee commercial real estate market not letting challenges disrupt its rise By By Dan Dan Rafter, Rafter, Editor Editor
L
ike it has in all major cities, Milwaukee’s commercial real estate market has faced a tough one-two punch: the COVID-19 pandemic and now the uncertainties that come with rising interest rates.
But the CRE market here? It is holding steady in some sectors and thriving in others, despite the hurdles thrown up by these major challenges. And the best news? The real estate professionals working in the city and its suburbs say that the future remains bright for commercial real estate in Milwaukee. Joseph Shumow, shareholder and chair of the real
estate practice in the Milwaukee office of law firm Reinhart, said that deal flow in the Milwaukee commercial real estate market remains healthy. But rising interest rates have brought uncertainty, he said. “For the first time in a few years, some deals have temporarily fallen apart,” Shumow said. “The double whammy of interest rate uncertainty and rising construction costs and inflation has had an impact. Not very many deals have fallen apart yet. There is still healthy deal flow here. At some point, though, some deals become untenable. We are not quite there for most deals, despite the interest rate and inflation.” MILWAUKEE (continued on page 17)
FINANCE
How many deals will rising interest rates wipe away? CRE pros in wait-and-see mode By Dan Rafter, Editor
When the Federal Reserve in the summer raised interest rates by three-quarters of a percentage point, it ranked as the agency’s most aggressive such hike since 1994. The Fed made this move to combat inflation. But the providers of commercial financing worry that rising interest rates could scuttle construction and acquisition deals that were set to close but might no longer make sense now that rates are higher.
FINANCE (continued on page 14)