2021 Sheboygan / Manitowoc Real Estate Report
January 2022 - 2021 was probably the busiest year in recent memory for commercial real estate. Click on links below to learn more about specific properties in the area. The 2021 report is available after the narrative.
Industrial - Demand for industrial, warehouse and flex spaces has been incredibly strong to the point where vacancy in Wisconsin is almost non-existent. The “standard industrial” price point for years was $40/SF. With rising replacement costs (i.e. construction costs) the last two sales for industrial properties in Sheboygan County were over $50/SF. Rents for 18’+ ceilings in industrial have risen to $4.50/SF NNN. At the writing of this page, the largest clear space for sale with a loading dock available in the county is about 10,000 SF and doesn’t have heat or 3-phase power. This market has become incredibly tight. Industrial sales, albeit rare, are pushing down into the 8.0% - 8.5% for CAP rates.
Office - Demand for office spaces under 3,000 SF has been robust, while larger office spaces continue to linger on the market. The rental prices for office in Manitowoc and Sheboygan County’s is much lower than any other metro; however, vacancy is low. The largest piece of office on the market is ~64,000 SF listed located in the Town of Sheboygan. Recently the former US Bank Building in Sheboygan sold and many affordable offices are now on the market for lease within the building.
Retail - High traffic retail spaces continue to perform well. Downtown properties in good repair are occupied. This tightness in space is allowing building owners to get creative with maximizing locations in prime corridors. Sale or leases of restaurants are slow as buyers worry about labor.
Multifamily - CAP rates for existing multifamily are aggressive and hovering around 6.25% to 6.5%. Bold buyers have entered the market as one 8-unit in the area sold at a price point where the buyer will lose money until rents are increased. Sheboygan County’s vacancy in the report appears high due to a new 240-unit development. This vacancy is expected to be gone by the end of summer. Manitowoc will see its first new construction downtown apartments completed in 2022, drastically changing rent comparables in the market. Both markets will need more units if they wish to keep up with with the labor market.
Upcoming Developments - The lakeshore continues to grow. Both downtown Manitowoc and Two Rivers are seeing new investment in housing and breweries. The Town of Sheboygan has a 99-acre mixed use development which will begin in 2022. The outlook of Wisconsin’s “fresh coast” is very positive.
If you would like the most recent market information or detailed reports for a specific asset class please contact the office. Information includes, but not limited to:
Vacancy rates and available properties
Market rents and CAP rates
Upcoming developments
Recent sales and comparable
Municipal planning and priorities
