Effective rents are forecast to increase 1.7% in 2026, reaching $1,636 by Q4. The pricing outlook remains positive even as leasing conditions stay competitive across the metro.
Madison enters 2026 with an above normal construction pipeline, keeping leasing conditions competitive across the market. Even without a sharp spike in completions, the depth of active projects keeps new supply pressure in place through the year, especially in submarkets with the largest lease-up exposure.
Despite deliveries outpacing absorption in the forecast, occupancy is projected to move only marginally in 2026, dropping by -10 bps. The overall vacancy profile remains tight, with softness largely concentrated in supply exposed pockets rather than a broad market shift.
Madison’s 2026 outlook is defined by a tight fundamentals market operating with an active development pipeline, which keeps performance more corridor-driven than marketwide...
