The majority of development is taking place in suburban and select urban in fill markets. Larger retailers, like Roundy’s, Wal-Mart, The Home Depot and Menards, are developing in suburban locations or infilling properties in mature markets. The majority of in fill projects have been on properties containing functionally obsolete retail buildings.

Urban in fill projects in recent years include Mid-Town Shopping Center opening on the former Capitol Court site. The 300,000-square-foot, first phase includes Wal-Mart and Pick ‘N Save. Wal-Mart also has opened new stores in the former Builders Square on East Capital Drive, a location at 76th and Brown Deer and one in Southgate on South 27th Street.

Also on 76th and Brown Deer, Northridge Mall is undergoing the first phase of redevelopment that will include a relocated Menards and a new Pick ‘N Save.

Pick ‘N Save’s parent company, Roundy’s, has been on an aggressive expansion path. Currently, Roundy’s is in the process of acquiring some Kohl’s Food Stores in Madison and a select number of Sentry stores in the area.

Kohl’s department store has continued its expansion in southeastern Wisconsin with new stores in Waukesha and Muskego.

Other large projects include the proposed repositioning or renovation of Bayshore Mall and Brookfield Square. These projects will give retailers the potential to penetrate both North Shore and west side markets. Previously, it was challenging for retailers to simultaneously open in the market with a North Shore and west side strategy.

Some of the more active developers in the area include Mequon, Wisconsin-based General Capital Group; Big Bend, Wisconsin-based Big Bend Development; and Milwaukee-based Continental Properties.

New retailers to the area include Chipotle, Panda Express, Caribou Coffee, EB Games, Bed Bath & Beyond, and P.F. Chang’s China Bistro. Southeastern Wisconsin has seen a number of existing retailers expand their market share and in fill markets.

There are a number of areas to watch in Milwaukee in 2003, such as the South 27th Street corridor where Northwestern Mutual Life Insurance Company’s new south campus will bring additional development activity to the area. The suburbs will see more retail development, fueled by residential housing growth. The Highway 43 and Moorland Road intersection in New Berlin will experience increased traffic, since the extension of Moorland Road has eased access into the Muskego and New Berlin markets. Also, the redevelopment of The Shops of Grand Avenue should lead to increased residential and commercial development downtown and in the Third Ward.

The southeastern Wisconsin market continues to be steady with inflation, lease rates, development and vacancy in check. This historic trend is expected to continue into the foreseeable future.


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