NAI Pfefferle held its 16th annual Real Estate Forecast event April 29 at The 513 in downtown Appleton.
The event brought together developers, brokers and economic development professionals to hear insights from industry leaders on both national and local commercial real estate trends.
Amy Pfefferle Oelhafen, president and CEO of Pfefferle Companies, greeted attendees before introducing Alex Waddey, president and CEO of NAI Global, who provided a national market update. Waddey described 2024 as “an adjustment period,” noting that while interest rates had been trending downward, optimism in 2025 is tempered by other factors.
“One little word changed everything: tariffs,” Waddey said. “The challenges are similar across product types. Every asset class is impacted by tariffs, rising costs and inflation.”
He pointed to a surprising shift in momentum in the national market.
“Office, which struggled during the pandemic, has the most opportunity coming out of COVID,” he said. “Industrial has pulled back, as has multifamily. But both were moving at 90 miles per hour so ‘pulling back’ doesn’t mean there isn’t opportunity; it’s just going the speed limit now.”
Manny Vasquez, vice president and partner at Pfefferle Companies, Inc., moderated a panel discussion featuring Tracy Johnson, president and CEO of Commercial Association of Realtors Wisconsin (CARW); Kurt Bauer, president and CEO of Wisconsin Manufacturers & Commerce (WMC); Dan Cowell, principal at Luther Group; and Teresa Knuth, senior broker at NAI Pfefferle.
Bauer said that manufacturers relying on exports are approaching capital investment with caution due to the latest tariff developments.
“I’m not sensing panic, but I am sensing concern based on tariffs,” Bauer said.
He added that recent large-scale investments in Wisconsin-based data centers — such as Microsoft’s $3.3 billion project in Mount Pleasant and the Cloverleaf Infrastructure project planned for Port Washington — could drive industrial growth along with much-needed growth in the state’s energy sector.
“That’s a huge vulnerability for us [in Wisconsin] that has to be addressed,” he said.
Knuth noted that while some uncertainty remains in Northeast Wisconsin’s real estate market, there’s also a growing sense of optimism. Vacancy rates in retail, office, and industrial sectors currently range from just 2% to 6%, and the office market is showing signs of improvement.
“Everything is so market-to-market, now more than ever,” Waddey said. “Sucess in 2025 will depend on adaptability, expertise and relationships.”
