Markets · Madison, WI MSA

Madison Industrial Market Report

Bluebird CRE Research · As of 2026 Q1 · Data: CoStar Group, www.costar.com

A tight, supply-constrained market anchored by state government, healthcare IT, and a highly educated workforce.

4.2%
Vacancy
$8.15/SF
Asking Rent
$6.30/SF
NNN Rent
560K SF
Net Absorption (12 mo)
3.7M SF
Under Construction
8.9%
Market Cap Rate

Asking Rent / SF

2016–2026

Now $8.15 · +2.1% YoY

Vacancy Rate

2016–2026

Now 4.2%

Net Absorption (12 mo)

2016–2026

Now 560,318 SF

Annual figures through 2026 Q1. Source: CoStar Group, www.costar.com.

Market overview

As of 2026 Q1, Madison industrial vacancy stands at 4.2% with asking rents near $8.15/SF. The market absorbed 560,318 SF over the trailing year, and investment sale pricing implies roughly a 8.9% cap rate. Those are the figures that frame how we underwrite here.

Bluebird's read

A tight, supply-constrained market anchored by state government, healthcare IT, and a highly educated workforce. Bluebird targets functional small-bay and IOS product here at a basis below replacement cost, with leasing and mark-to-market as the value-add levers.

Economy

Population
716,207
Total employment
427,331
Industrial employment
57,072
Median HH income
$92,435

Key submarkets

  • • Sun Prairie
  • • Fitchburg
  • • Windsor / DeForest
  • • East

Representative tenants

  • • American Family
  • • Epic Systems
  • • Sub-Zero
  • • Amazon

Explore other markets

Milwaukee, WI
5.1% vacancy · $7.68/SF
Columbus, OH
6.5% vacancy · $8.41/SF
Indianapolis, IN
7.6% vacancy · $7.71/SF

Market data sourced from CoStar Group, www.costar.com (as of 2026 Q1); figures are point-in-time estimates and forecasts are not guarantees. Provided for informational purposes only and not an offer to sell securities. Past performance does not guarantee future results.

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