Marcus & Millichap is pleased to present the opportunity to acquire the property located at N59W14339 Bobolink Avenue in Menomonee Falls, Wisconsin, leased to Terrazzo & Marble Supply Companies. The subject property consists of approximately 17,322 square feet of warehouse space and is situated on 1.11 acres of land. The single-tenant asset features masonry construction, a partial clear height of 24’, one dock-high door, four grade-level doors, three-phase heavy power, four HVAC units (three replaced over the last year), and three cranes (including a 15-ton, 5-ton, and 2-ton). With a newly installed TPO roof in 2024, the property reduces any near-term capital expenses for investors. Located in the low-tax Waukesha County, the property has proximity to Interstate 41 and State Trunk Highway 175. The property is leased on a triple net basis at $6.64 per square foot with 1.95 percent annual escalations. While the lease runs through January 2028, the tenant exercised their 5-year renewal option early, demonstrating a commitment to the facility. For over 75 years, Terrazzo & Marble Supply Companies has created comfortable and collaborative work spaces, manufacturing and installing a variety of flooring options for businesses.
The subject property is located within Northeast/Menomonee Falls, a midsized submarket containing 18.6 million square feet of industrial space. Unlike the national norm, the submarket is dominated by specialized facilities, making up 54 percent of the inventory, followed by logistics and flex spaces at 34 percent and 12 percent, respectively. In 2024, industrial demand managed to remain in positive territory with about 21,000 square feet absorbed on net. However, supply outpaced demand with net deliveries at nearly 134,000 square feet. As a result, the vacancy rate ticked up 60 basis points to 1.8 percent but remained well below the 7.0 percent national average (based on top 50 metros, minimum 10,000 square feet, classes A, B, & C). Thanks to the lack of availability, annual rent growth more than doubled the 3.1 percent national average at 6.7 percent, allowing landlords to stay ahead of the increases in the Consumer Price Index. Market rents per square foot averaged roughly $7.40 by the end of last year. Despite the strong fundamentals of the Northeast/Menomonee Falls submarket, only about 330,000 square feet of industrial space were under construction at the start of 2025, representing just 1.8 percent of existing inventory. With the pipeline in low supply, demand will largely be in the driver’s seat of vacancies and rents for the foreseeable future (CoStar).
Metro Milwaukee, which includes the counties of Milwaukee, Ozaukee, Washington, and Waukesha, is home to nearly 1.6 million residents, with approximately 590,000 living within city limits. The region is transforming from its manufacturing roots to a more diversified economy with a growing healthcare and technology sector. The lower cost of doing business compared to Chicago is attracting new employers to the metro, which already hosts six Fortune 500 firms. Major employers in the area include Northwestern Mutual Life Insurance Company, Aurora Health Care, Kroger Company, and Kohl’s Corp. Thanks to the ten universities in close proximity to Milwaukee, the region benefits from a skilled labor pool, with two-thirds of residents ages 25 and older having some college education. With two major league teams, its position along Lake Michigan, and several museums and attractions, residents of metro Milwaukee enjoy a high quality of life (Marcus & Millichap).
BROKER OF RECORD
Todd Lindblom
Wisconsin Broker of Record
13890 Bishops Drive, Suite 300
Brookfield, WI 53005
Tel: (262) 364-1964
Todd.Lindblom@MarcusMillichap.com
License: 56163-90
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2025 Marcus & Millichap. All rights reserved. (Activity ID: ZAG0370024)
