The following is a response post from William Mears, Broker — Coldwell Banker Commercial McGuire Mears & Associates
According to the Rock County Index's economic development dashboard, the Janesville-Beloit MSA saw new records and opportunities in Q1 2023. Some highlights:
- Unemployment rate remained historically low at 3% despite a decline in regional job postings for the third consecutive quarter.
- Residential pricing reached new heights due to limited inventories, with average home sale prices increasing by 7.5% compared to the previous year.
- As reflected in Q1 sales and use tax collections, consumer spending remained strong, reaching the third-highest quarterly figure since 2007 with a 14.6% increase year-on-year.
Notable commercial real estate transactions in Q1 by category
Industrial: New construction, NorthStar's 170,000 square foot expansion
Absorption: 4 projects totaling 187,413 square feet
Office: Leasing and sales activity remains slow, but vacancy levels did not increase this quarter.
Midlands Office Centre, five tenants, 17,878 SF returns to 100% occupied.
Retail: Remains steady with minimal vacancy, with a couple of notable transactions in this sector.
187,413 square foot Pine Tree Plaza sold for $19,275,000
Kayser Ford acquired Clapper Automotive
17,400 square foot strip center on the city's south side sold at an 8.5% CAP rate
Land: Four (4) large transactions in the Janesville/Beloit area totaled 180.73 acres, with an average selling price of $18,899 per acre. One (1) site zoned multi-family sold to neighboring landowners for $91,373 per acre.
These items and others are highlighted in this week's release of the Q1 2023 Rock Ready Index.