Over the past two years, a spate of Wisconsin companies has opted to open new offices in downtown Milwaukee, with some businesses even choosing to relocate their headquarters.

Companies including Enerpac, Allspring Global Investments, Veolia North America, Milwaukee Tool, Fiserv and Regal Rexnord have either shifted to or increased their presence in downtown Milwaukee, or have announced plans to do so.

This wave of openings contradicts a national trend of companies downsizing their office spaces in prominent metro areas. Office vacancy rates reached a record 20.1% in the second quarter of 2024, according to data from Moody’s. That’s the highest level since 1979, when the organization began keeping track of data.

By comparison, the downtown Milwaukee area’s office market had a 17.6% vacancy rate in the second quarter, according to a report from the Commercial Association of Realtors Wisconsin and REDIComps, in partnership with Catylist, a Moody’s company.

A unique mix of amenities has allowed the city of Milwaukee to continue attracting new tenants.

Among the largest office renovation projects recently completed is Milwaukee Tool’s five-story building located at 551 N. 5th St. The $40 million project was officially completed last July. About 900 employees work in the space.

The location of the building, nicknamed the Red Beacon, was highly attractive to Milwaukee Tool, according to Ashley Becker, vice president of talent management. The office can be seen from I-794 against the backdrop of Milwaukee’s skyline.

When it comes to recruiting younger workers, Becker said the downtown office allows Milwaukee Tool to market itself to potential employees as a key player in a vibrant downtown scene.

The company regularly recruits workers from local colleges and universities. While speaking with local students, Milwaukee Tool learned how important being in a big city is to young workers.

“The location of the building in the Westown neighborhood was really appealing to us with all the investment and energy that’s happening in the area,” said Becker.

The fact that the company wouldn’t need to complete a new building was also a winning point.

Milwaukee Tool focused on moving entire teams into the downtown office to encourage ongoing collaboration. That decision, coupled with unique amenities like an on-site gym and cafeteria, have created a special working environment, Becker said.

“I think people are really motivated to go into the office because of all the work that has gone into making it a place where people actually want to go,” she said. “We haven’t had any issues with getting our employees into the office.”

Since opening the new space, Becker said Milwaukee Tool has become an even more recognizable brand. Job seekers with different professional backgrounds, like human resources and finance professionals, now have Milwaukee Tool on their radar as a possible employer. That’s in addition to job seekers in more traditional industries like engineering.

“The overall sentiment from our candidate pool has been that they could potentially see themselves working at this exciting space,” said Becker. “The space is causing them to take a look at the job boards and really inquire.” Milwaukee Tool’s downtown office is located at
551 N. 5th St.
Credit: Ashley Smart

‘Surging’ applications

Fintech company Fiserv officially opened its new 168,000-square-foot headquarters within downtown Milwaukee’s HUB640 building in March.

The new space has not only helped boost employee morale and productivity, but also bolstered Fiserv’s reputation as an “industry leading” employer, said Bob Hau, chief financial officer at Fiserv.

“Moreover, the collaborative nature of our company and networking opportunities provided by our physical office environment offers a unique selling point for prospective candidates,” said Hau.

Thanks in part to its new downtown space, Fiserv has seen a 56% surge in job applications from 2023 to 2024. Hau said the office has created a positive buzz and become a “powerful driver” for attracting top talent.

When making the decision to relocate its headquarters, Hau said Fiserv never considered another location except Milwaukee. The company had already invested heavily in Milwaukee when it acquired the naming rights to Fiserv Forum, and it wanted to continue increasing its investment in the community.

“We have tremendous talent and clients based here,” said Hau. “We knew we wanted to have a dynamic, world-class hub location that would be an innovation center and a destination for Fiserv clients.”

The office’s proximity to amenities like Fiserv Forum was a deciding factor in the move. The addition of an innovation center allows Fiserv to bring clients into the city to showcase new technologies while also highlighting Milwaukee’s cultural and entertainment assets.

The city’s “vibrant” commercial and residential community, ease of accessibility by car and public transportation options were additional factors that led Fiserv to relocate downtown, said Hau.

“Our new headquarters is one of the largest fintech hubs in the Midwest and reflects our focus on creating value and enabling best-in-class results for our clients,” he said.

Location is key

When Boston-based Veolia North America announced plans to move its west side office to downtown Milwaukee last October, the company also cited a desire to attract new talent.

Location and logistics were key factors that led Veolia to select the ASQ Center on North Plankinton Avenue as its new office space, said Sylvain Cornelie, vice president of digital business and technologies, corporate domain and enterprise solutions CIO at Veolia.

Amenities like the city’s skywalk system make it easy for employees to navigate downtown and enjoy the area’s plentiful attractions, he said.

Veolia officially moved into its new third-floor office space about two months ago. The building will also soon be home also to Menomonee Falls-based Enerpac Tool Group, which is renovating the fourth floor for its new 56,000-sqaure-foot global headquarters. The company plans to move in late this year or early next year, and it will then rename the building as the Enerpac Center, taking over naming rights from anchor tenant American Society for Quality.

When considering a new office location, Veolia’s leaders made sure to engage their entire Milwaukee-area team. Employees helped design the different areas within the office, which include flexible space and private working booths, and had input on the furnishings that would be used.

“It’s definitely too early to say if people will be coming more often into the new office,” said Cornelie. “We definitely noticed an increase of employees coming in, but the space is still new. We need more time to see if this is something that will work in the long run.”

In keeping with modern office design trends, Veolia strived to create a space that encourages collaboration. For example, there’s a large working lounge and a cafeteria with an open kitchen.

Veolia is also working to make itself a more recognizable brand in Milwaukee. The company expects to add signage to the top of the building by the end of the year, a design element that was important to the company when choosing a new space. Enerpac also has plans to add signage to the building.

“I’ve been living in the Milwaukee area for 10 years, and I’ve seen the downtown area evolving in a very positive way in that time,” said Cornelie.

The company also hopes to build brand awareness through community engagement, something that’s easier to achieve downtown, according to Cornelie. Veolia has become more involved with several United Way projects, including housing-related initiatives and back-to-school fundraisers.

“We’re invested in being here and truly becoming part of the Milwaukee community,” he said.