A 34,400-square-foot multi-tenant flex building in Pewaukee changed hands Tuesday in a $3.35 million sale, according to local reporting. The single-story property, set on roughly 4.5 acres, is carved into five suites that combine light-industrial and office space. Investors keep circling well-located small-bay industrial buildings in central Waukesha County, looking for stable rent rolls with a bit of upside as vacancies are leased.
As reported by Milwaukee Business Journal, the deal closed at $3.35 million. Marketing materials on LoopNet peg the address at N25W23131 Paul Road and list about 34,400 rentable square feet, with the asset sitting at roughly 82% occupancy at the time of sale. The LoopNet brochure also highlights recent capital work, including a full roof replacement in 2022 and updated rooftop units, improvements that trim near-term maintenance needs for the new owner.
Market angle: tight suburban industrial market
Regional research shows Milwaukee-area industrial fundamentals were still holding up in early 2026, which helps explain why smaller flex properties that cater to a mix of users remain in demand. Newmark's 1Q26 Milwaukee industrial market report notes steady leasing activity and rising asking rents across the metro, a combination that supports investors paying for centrally located Waukesha County assets. In that environment, buyers can either ride existing income from current tenants or push for modest lease-up and rent increases on any open bays.
Tenants, vacancy and what comes next
The LoopNet listing names tenants including Cooperative Educational Service Agency #1, Pewaukee School District Insight and a local fitness operator, leaving one modest bay vacant for the buyer to fill. With a warranty-backed roof project and updated mechanical systems already completed, brokers say the property carries a lighter near-term capital burden than many buildings of similar vintage. How hard the new owner works to market that remaining space will go a long way toward shaping near-term cash flow and any lease-up strategy.
Local market trackers also point to a modest development pipeline in Waukesha County that will test just how much demand is out there in coming quarters. CARW's Q1 2026 Southeast Wisconsin market report shows several projects under construction across the county, so investors and brokers are expected to watch leasing velocity before greenlighting larger repositioning plans. For the Paul Road building, filling the vacant suite while holding on to long-tenured tenants is likely job one.
