HEARTLAND SNAPSHOT, JUNE 2004

GREEN BAY MARKET SNAPSHOT

The Green Bay, Wisconsin, market is beginning to see stronger, widespread movement in all aspects of the commercial marketplace, according to Jeff Weyers, president of Green Bay-based Commercial Horizons.

“In past economic recoveries, the improvement was more broad-based and solid,” Weyers says. “In this recovery though, momentum has started in the proper direction but it is conservative.” New office space is coming on line. Manufacturers are looking to acquire additional space; however, they are more inclined to purchase than lease. The developer side of the retail sector is now emerging out from behind the owner-user side of the market.

Major downtown and urban office projects have recently broken ground. These high profile addresses will loosen up and invigorate the high-end office users and have a ripple effect as existing space is freed up, Weyers says. Nicolet National Bank’s downtown headquarters, being developed by Commercial Horizons, Inc. will be a cornerstone to Mayor Schmitt’s downtown development initiative. Baylake Bank is redeveloping a former Boston Store. Johnson Bank anchors Direct Development’s new downtown office building. These developments further the image of the downtown as a financial and business hub rather than a retailing center.

On Broadway, buildings are being converted into locally owned eateries and specialty shops, helping to change the way Green Bay views the Broadway district. On Broadway Inc., a Main Street redevelopment group, has been instrumental in this transformation.

Suburban Ashwaubenon is redeveloping an industrial waterfront into a high profile combination of office, condominium and restaurant space. The area also is creating a stadium district around Lambeau Field that will connect with the successful Bay Park Square mall.

“Historically, most of the development has occurred on Green Bay’s western front. Development is now expanding to include the downtown, south and east submarkets,” Weyers says. “Holmgren Way, which runs parallel to Oneida Street on the city’s south side, Bellevue and the DePere/Lawrence area of Highway 41 are growing sectors in terms of retail and office development. The developments follow the housing market and each area has experienced growth in the recent past.”

For example, Commercial Horizons is developing a multi-tenant office building in downtown, and Midwest Expansion is developing a new center off Oneida Street and more outlots near the Wal-Mart Supercenter on the city’s south side.

“There is very little vacant retail space,” Weyers says. “If you don’t take into account a major downtown mall that is struggling to keep tenants, vacancies are probably near 5 percent or less.” Also, a soon-to-be-vacant Stein Mart will have to be filled.

Office vacancy hovers in the 5 percent to 10 percent range. The industrial/warehouse market has some major holes to fill as downsizing still has momentum and two recent 1 million-square-foot distribution facilities by Proctor & Gamble and Dean Food’s have precipitated vacancy of large industrial/warehouse space.

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