The Madison market continues to record positive absorption in all commercial property types including retail, office, and industrial. The Madison office market recorded 70,334 sf of positive absorption, up 3,500 sf from last quarter alone. In addition to the increase in absorption, vacancy rates have continued to decline year over year. In 2017, the office market vacancy decreased 1.5% to 8.0% YTD. During this same period, weighted average asking rents in all classes increased 8.9% recording $20.34 per sf FSG at the close of Q2 2017.
According to the Bureau of Labor Statistics, the unemployment rate for the Madison Metropolitan statistical area dropped .7% from May 2016 to May 2017 (2.2%). This rate is considerably lower than the US average of 4.3% and is the lowest unemployment rate since 2001. Since 2015, job creation in office using jobs (information, professional and business services, tech and financial services) totaled 6,400 jobs while 1,100 manufacturing jobs and 2,100 transportation jobs were creating during this same period.