May 1, 2025
Milwaukee’s retail landscape is undergoing a significant transformation. As national chains like Big Lots, Joann Fabrics, and Party City shutter locations, a new wave of tenants is repurposing these large vacant spaces to meet evolving consumer demands.
In 2024, Ollie’s Bargain Outlet made a notable entry into the Wisconsin market by acquiring and repurposing former Big Lots locations in Kenosha and Mount Pleasant. This trend continued into early 2025, with Ollie’s opening four additional stores in Mount Pleasant, West Bend, Sheboygan, and Fond du Lac, all occupying spaces previously held by Big Lots.
Beyond discount retailers, other businesses are also capitalizing on these vacancies. Fitness centers have moved into former Office Max locations, and active concepts like pickleball facilities are transforming old big-box stores into recreational spaces.
Despite these adaptive reuse efforts, Milwaukee’s retail market faced challenges in Q1 2025, experiencing negative absorption of 172,527 square feet and a year-over-year increase in vacancy rates to 7.4%. While 44 leases were signed during this period, marking a 33% decrease from the previous year, 84% of these leases were for spaces between 1,000 and 3,000 square feet, indicating strong demand among smaller tenants.
Landlords are expressing concerns about the financial implications of these new tenants, as they often pay lower rents than their predecessors. Additionally, the limited availability of Class A properties has led to 98% of recent leases being signed in Class B and C spaces.
The ongoing lack of new retail construction since 2009 has resulted in a tight market, pushing tenants to consider and adapt to existing spaces. As the retail landscape continues to evolve, the ability to creatively repurpose vacant big-box stores will be crucial in meeting consumer needs and revitalizing Milwaukee’s retail corridors.
Medical Retail (medtail) has become a key component in revitalizing retail centers by filling vacancies left by traditional retailers with stable, health care-related tenants like dentists, chiropractors, and physical therapists who seek visibility, convenience, and branding opportunities. At Village Market in Hales Corners, for example, multiple former retail spaces have been successfully repurposed by medtail tenants, reflecting a broader trend of integrating medical services into shopping centers to drive weekday foot traffic and long-term occupancy.