That’s a Wrap — A Year-End Look at Southern Wisconsin Commercial Real Estate

By Senior Associate Mandy Witt

Southern Wisconsin commercial real estate isn’t moving in one direction — and that’s exactly why this market matters.

While national headlines tend to generalize, the reality in the Janesville–Beloit MSA is far more mixed. Like many Midwest tertiary markets, fundamentals are driving decisions. Some sectors stayed steady, others reshuffled, and a few quietly surprised.

Add in the growing data center conversation, early momentum around the planned Beloit casino and resort, the grand opening of the Woodman’s Sports and Convention Center, the Children’s Museum of Rock County in downtown Janesville, and Discovery PLAYce at the Beloit Public Library, and it’s clear this market is evolving — not stalling.

Taken together, these projects point to a market increasingly focused on infrastructure, experience, and long-term place-making rather than quick wins.

But before jumping too far ahead, let’s rewind and take a closer look at what actually defined the Southern Wisconsin commercial real estate market this year.

From Manufacturing to Megawatts: Industrial in the Janesville–Beloit MSA

Industrial real estate in the Janesville–Beloit MSA didn’t make national headlines with blockbuster leases or sky-high absorption numbers — but it remained strategic, evolving, and anchored in real economic activity.

One of the year’s biggest local stories was the announcement of Zilber Industrial 13, a roughly 238,000-square-foot speculative industrial facility planned in the Janesville Innovation Park. Positioned just minutes from I-90 and I-39, the building is designed with modern specifications — high clear heights, ESFR sprinklers, flexible layouts, and strong power capacity — to accommodate manufacturing, logistics, and distribution users. Zilber’s investment signals continued confidence in Rock County’s long-term industrial fundamentals, even amid a more disciplined development environment.

The Gateway Business Park is also preparing for new industrial investment with a planned 200,000-square-foot warehouse/distribution center expected to bring additional jobs to the area.

But perhaps no topic generated more discussion — or community input — than the data center proposals at the former GM Assembly Plant site.

Janesville leaders approved a letter of intent to explore redevelopment of the roughly 250-acre brownfield site — including an 8- to 11-building data center campus that could require up to 800 megawatts of power.

Community response has been equally notable. Public hearings and petitions reflected both optimism around economic revitalization and concerns related to transparency, infrastructure strain, and job quality — underscoring how industrial development today extends well beyond buildings alone.

Beyond these headline projects, the broader industrial story in 2025 was one of measured expansion and realism. Developers and tenants focused less on square footage and more on site readiness, access, power availability, and functional design.

The takeaway: Industrial activity in the Janesville–Beloit MSA held steady, but the conversation clearly shifted. Growth became less about speed and volume and more about infrastructure, power, and long-term viability.

Multi-Family Needs to Multiply

Multifamily in the Janesville–Beloit MSA continued to move forward in 2025, but not without friction. Demand for housing remains real, yet the path from concept to completion has proven uneven — especially once financing, neighborhood input, and infrastructure are layered in.

On the delivery side, Idylwood Residences stands out as one of the more significant projects advancing toward completion, adding more than 200 units of modern rental housing to the Janesville market. The project reflects a broader push to introduce newer product with updated layouts and amenities — something the market has been signaling it needs.

At the same time, additional proposals, including a 204-unit development near Pine Tree Plaza, moved through early planning and neighborhood review. These projects underscore continued developer interest in scaling multifamily in the region, particularly for young professionals and downsizing households seeking rental options that remain limited in supply.

Not every plan moved forward. A proposed income-restricted apartment project in downtown Janesville was ultimately abandoned, highlighting the realities of financing constraints, site challenges, and regulatory hurdles that continue to shape what gets built — and what doesn’t.

Beyond individual projects, municipalities across the MSA spent much of the year focused on housing strategy rather than speed. Community conversations, long-range planning efforts, and “Housing for All” initiatives reflect a recognition that while multifamily needs to multiply, it must do so thoughtfully — balancing affordability, neighborhood fit, and long-term sustainability.

The takeaway: Multifamily momentum is present, but measured. Units are coming online, proposals are being tested, and the need for additional housing remains clear.

Retail: It’s Raining Car Washes, Kwik Trips, and Big-Box Vacancies

Retail in Southern Wisconsin is undergoing a visible shift. While service-oriented uses continue to perform, the mix of tenants filling retail corridors is changing — and it’s becoming harder to ignore.

Big-box closures have been stacking up over time, starting with long-standing vacancies like J.C. Penney and the Boston Store, followed by Slumberland and Big Lots. More recently, closures including Joann Fabrics and Schnucks have added to the growing inventory of large-format retail space across the Janesville–Beloit MSA.

These boxes aren’t plug-and-play. Their size, layout, and locations mean repositioning will take time, capital, and creativity. Reuse is possible, but it will require coordinated planning and patience.

At the same time, convenience-driven retail continues to win. Car washes, fuel-oriented uses, and drive-thru concepts are rapidly absorbing smaller, well-located retail-zoned sites throughout the region. Kwik Trip, in particular, continues to expand aggressively and remains one of the strongest-performing convenience operators in the Midwest. Its model — combining fuel, food service, and daily necessities — has proven resilient and continues to drive demand for high-traffic locations.

Looking ahead, Woodman’s planned convenience-focused development, with fuel and service-oriented components, reinforces where retail demand is heading. The model is no longer centered solely on traditional grocery trips. Instead, it’s built around frequency, efficiency, and daily-use needs — capturing repeat visits while making better use of well-located sites.

Local takeaway: Retail isn’t declining — it’s rebalancing.

BONUS – Retailtainment: When Retail Decides to Entertain

Beyond traditional retail, experience-driven destinations are increasingly shaping how people use — and move through — Southern Wisconsin’s commercial districts.

In Janesville, the opening of the Woodman’s Sports & Convention Center marks a significant shift in how large-scale, event-driven uses could influence local activity. It’s too soon to measure full impact, but the volume of tournaments, conventions, and community events planned positions the center as a potential catalyst for surrounding restaurants, hotels, and service businesses.

In Beloit, Henry Dobbaker’s continues to demonstrate how food, gathering space, and local identity can drive downtown activity beyond standard retail hours. Located within the Beloit Ironworks building, the concept shows how adaptive reuse and placemaking can succeed at a human scale — activating surrounding streets and supporting nearby businesses without relying on large-format development.

Beloit is also preparing for a much larger form of experience-driven development. The Ho-Chunk Nation’s planned casino and resort near the I-39/90 interchange represents a different tier of retailtainment — one designed to draw regional visitors, generate overnight stays, and introduce a new flow of entertainment-driven traffic into the market. While the project sits outside the downtown core, its long-term impact on hotels, dining, and complementary commercial uses will be worth watching.

Looking ahead, retailtainment in tertiary markets is increasingly taking shape through market-appropriate experiences rather than one-size-fits-all entertainment. The Children’s Museum of Rock County in Janesville and Discovery PLAYce at the Beloit Public Library illustrate how interactive spaces can generate foot traffic, extend hours of use, and support downtown vitality without relying on large-scale attractions.

Final takeaway: Retailtainment isn’t about chasing trends. It’s about creating reasons for people to show up, stay longer, and return — and when done thoughtfully, it quietly strengthens the surrounding commercial ecosystem.

Office: Slow and Steady Stays in the Race

Office activity in the Janesville–Beloit MSA in 2025 didn’t produce splashy national headlines. There were no marquee relocations, no speculative office construction, and no major corporate lease announcements. What the market did deliver was steady, functional momentum rooted in local demand.

Most notably, the One Parker Place building — one of downtown Janesville’s more prominent office properties — sold late in the year, generating renewed interest as the market anticipates reinvestment and a potential remodel. The transaction reinforced what has been quietly true across the region: quality office assets with the right location and usability continue to attract buyers.

Beyond this sale, a range of small- and mid-sized office properties across Janesville and Beloit continued to trade and list for sale, supported largely by local users and owner-occupants. Over the past several years, well-located, stand-alone office buildings suited for single users have consistently outperformed larger, less flexible assets, particularly those that are well maintained and positioned for immediate occupancy.

At the same time, planning conversations around larger redevelopment sites, including 2400 Beloit Avenue, remained active. These discussions signal that while speculative office development is limited, office and mixed-use space still plays a role in long-term community and downtown planning.

Available inventory across multiple corridors continues to demonstrate that office space remains viable for medical, professional, and service-oriented tenants, even as larger speculative projects remain intentionally sidelined.

The takeaway: Office in the Janesville–Beloit MSA remains steady and competitive when aligned with location, condition, and realistic use. It may not be flashy, but in a year where restraint mattered, slow and steady quietly outperformed expectations.

Final Thought

The story of Southern Wisconsin commercial real estate in 2025 isn’t about extremes — it’s about fundamentals doing their job. Industrial is being reshaped by infrastructure and power. Multifamily is advancing carefully, shaped by financing and community priorities. Retail is reorganizing around convenience and reuse. Office remains steady, supported by local users and thoughtful reinvestment.

Taken together, the Janesville–Beloit MSA isn’t chasing trends — it’s responding to real demand, real constraints, and real opportunity. This is a market evolving deliberately, not stalling quietly. And as the conversation shifts from volume to viability, Southern Wisconsin continues to prove that steady, well-aligned growth still wins the long game.

Written from on-the-ground market experience in the Janesville–Beloit MSA, where fundamentals continue to shape what actually gets built, leased, and repositioned.