Madison Street Beat

MADISON STREET BEAT–Q2 2021 

Despite an increase in the number of employees now working from home or in a hybrid work environment, occupancy rates for office space in Madison remained just under 95% in Q2, slightly lower than the same period in 2020, but significantly better than the national average of 87.6%. With the low supply of new construction in the Madison area, office occupancy rates are predicted to stabilize over the rest of the year and into 2022.

Sales volume in 2021 has increased significantly since last year, when the world was just beginning to grapple with the coronavirus. Overall, volume remains below normal, with most transacted deals in $2-$3M range. Larger deals continued to elude the marketplace, as capital underwrites investments with more scrutiny.

Looking ahead, Dane County continues to have one of the highest vaccination rates in the country, with more than 80% of residents 12 and older having gotten at least one dose.  This should have a positive impact on the “return-to-office” market environment in terms of both occupancy and sales in the months ahead.

Madison Street Beat  is a snapshot of key metrics for the Madison area office space market developed by Compass Properties. Information contained in this report is general with regard to the subject matter and should not be construed as a recommendation to make any real estate investments or any other financial transactions.  Neither Compass Properties nor any of its employees and agencies warrant the accuracy or assume any liability for information contained in this report.