In a market where commercial real estate traditionally caters to big businesses, a Milwaukee-area developer says it aims to fill the gap for small-business office space.
VentureSpace LLC, a development firm in the Waukesha County village of Nashotah, has multiple commercial condominium projects in the works throughout the Milwaukee area. Its latest proposal in the town of Cedarburg would add 60,000 square feet across multiple duplex buildings that could house up to 38 businesses.
“(That’s) our vision: to build these units to help small businesses get that first step and then grow,” VentureSpace owner Michael Frede said.
Last month, the Waukesha County town of Merton approved a VentureSpace project that will have 69,000 square feet with room for up to 42 companies. Frede was also involved with commercial condo projects in Sussex and Oconomowoc that he sold to investors, and there are potential sites for similar developments in Menomonee Falls, Wales and Germantown, he said.
With the proposed Cedarburg project, VentureSpace would be part of the ownership group, Frede said. The other owners would be investors Marty Johnson and Jay Johnson, Frede said.
The proposed site for the Cedarburg project is a seven-acre parcel at 8535 Highway 60. Businesses would purchase a base unit for around $170,000 to $190,000 and could further customize the interior to add functionality and value, Frede said.
VentureSpace would build units as it identifies buyers. Each duplex building would generally be 3,000 square feet with two, 1,500-square-foot units. However, businesses could opt to purchase both units in the building or construct larger buildings, the project’s development plan states.
VentureSpace estimates there would be 20 to 25 unique businesses occupying the development. Based on an average value of $200,000 per unit and 38 units, the total estimated value would be $7.6 million, according to VentureSpace.
According to the plan, VentureSpace would own the first two buildings. It would occupy one with its office and lease the other to Black Cap Halcyon LLC, a Milwaukee-area real estate development firm owned by Anthony Polston. VentureSpace has also had interest from a custom furniture maker, a real estate broker and a custom elevator installation company, the plan states.
If approved, the project could break ground this fall and be ready for its first occupants by early 2023, according to VentureSpace. The entire project is anticipated to be completed in about three years.
The town of Cedarburg plan commission is scheduled to consider the plan on Aug. 17 and there are additional development requirements beyond that, Frede said.
“This type of development is really good for a municipality,” Frede said. “It provides an opportunity to retain small businesses that otherwise may go somewhere else.”
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