Investors flock to Milwaukee
“ THE HOP “
Milwaukee is another great hub for investors — Milwaukee is a great place to invest in rental properties. Millennials make up over 80% of rental property tenants in Milwaukee with the median rent price at $830, slightly higher than the overall median rent price of the state.
Millennials are flocking to the city attracted by the job opportunities, the craft brew scene, burgeoning downtown area, and affordable cost of living. And with slightly higher rental prices, you’ll be able to get a good return on your investment while still attracting plenty of renters with the more affordable rate.
There are many up and coming projects in Milwaukee that are fuelling the attraction to this fine city. Large infrastructure changes bring new business, jobs and investment which subsequently drives real estate investment in and around the city. Global Investments will be keeping you up to date on current and up and coming projects.
One such investment is “ The Hop “ is a streetcar line operating in downtown Milwaukee and nearby neighbourhoods in Wisconsin, US. The $128.1m project was constructed in phases. It connects 80,000 downtown workers, 25,000 downtown residents and millions of visitors, while establishing a fixed-rail transit operating system in the city.
Approval for the project was obtained in February 2015 from the City of Milwaukee Common Council. Construction commenced in 2016 and has now completed its first year of service in 2019.
“When we build The Milwaukee Streetcar, we are supporting or creating jobs for city residents; we are constructing functional and attractive infrastructure that promotes business growth; and, we are setting the stage for additional private sector investment and economic activity.”– Tom Barrett, Milwaukee Mayor
Home to several major corporations, the Milwaukee region ranks 5th among United States cities on a per-capita basis for Fortune 500® headquarters. Rich in culture and arts, the city also boasts renowned educational institutions and a rapidly evolving built environment.
Aside from its distinguished assets, Milwaukee will now join other peer cities in offering a fixed-rail transit network. The world-class system will set the tone for future developments and position the city as a progressive urban centre that welcomes new investment, businesses and talent.In addition to sending a message of growth and prosperity,The Milwaukee Streetcar will conveniently connect residents, workers and downtown Milwaukee’s 6+ million annual visitors to an array of transportation choices and attractions. Pedestrians, bus riders, train travellers, drivers and cyclists will soon choose the streetcar’s easy-to-navigate routes and high-quality trips as a link to their destinations.
The Milwaukee Streetcar will better connect the Intermodal Station and its 1.5 million annual users to the Historic Third Ward, central business district, lakefront and Lower East Side. Hunden Strategic Partners recently conducted a study that determined,
“downtown would function more coherently as a single downtown area with a permanent transit service. In a city core that is as expansive as Milwaukee’s, a system of intersecting transit lines or streetcar tracks set up as a downtown-area circulator appears to be a positive path to tie the city’s attractions and people together, and to jump-start new urban development.”
CATALYST FOR DEVELOPMENT
”Fostering economic development” is a primary goal established at the onset of The Milwaukee Streetcar project. Cities such as Portland, Seattle and Minneapolis have all seen billions of dollars in new development occur within close proximity to their fixed-rail systems.
Milwaukee anticipates similar benefits and is taking steps to capture the streetcar’s full economic development potential. What drives this economic boom is the attraction to permanency. Developers are drawn to fixed-rail routes because they know their investment will be serviced for the long-term. The Milwaukee Streetcar will create the same level of confidence and predictability as have similar systems in other cities.
To demonstrate the economic potential near the streetcar system, the City of Milwaukee conducted a land use analysis of the area within a quarter-mile of the initial route and its extensions. The analysis indicated the following economic activity could be generated by 2030 :
9,000 new housing units (63% increase)
13,500 new residents (55% increase)
1,000,000 sq. ft. of new occupied retail space (31% increase)
4,000,000 sq. ft. of new occupied office/hotel space (28% increase)
20,500 new jobs (23% increase)
$3.35 billion of new development
The Milwaukee Streetcar is expected to help unlock this development potential. Conservatively speaking even if half of these figures are achieved the knock on effect with regards demand for real estate in and around the city will surely be positive. With higher demand comes a growing rental market and also fantastic potential for capital growth.
Milwaukee is a market with tremendous, long-term potential for increasing rental and property appreciation, if you would like to see our current Milwaukee properties please email invest@globalinvestmentsincorporated.