Crow Holdings Proposes Airport Industrial Redevelopment Project at Milwaukee Mitchell International Airport

Milwaukee – February 15, 2023 – CBRE today announced it will handle a new leasing assignment on behalf of Crow Holdings for the South Cargo Logistics Hub at Milwaukee Mitchell International Airport (MKE), a proposed state-of-the-art on-tarmac air cargo facility totaling 288,000 square feet. The project has potential to significantly increase capacity at MKE and serve as an economic driver for both the airport and the broader Southeastern Wisconsin and Chicagoland region. Crow Holdings, a privately owned real estate investment and development firm with more than 70 years of history and $24 billion of assets under management at other similar airports, will develop the properties on behalf of MKE.

CBRE’s David Prell and Scott Furmanski will market the redevelopment on behalf of Crow Holdings.

The proposed project consists of a 288,000 square foot building with 74 docks and 99 trailer stalls. Upon successful completion of the in-progress approval process, the project could deliver in the second half of 2024.

In addition to MKE’s full suite of airport services, the proposed development will offer users access to several strategic benefits including:

• Uncongested airspace
• Runway/ramp ability to handle large cargo aircraft
• Potential built-to-suit warehouse and office space to adapt to tenant needs
• Direct access to I-94, connecting to downtown Milwaukee, Chicago, Minneapolis, Detroit, and beyond
• MKE’s world-class winter weather team, ensuring reliable year-round operations

The proposed project will serve as a legitimate option for cargo tenants looking to avoid the much higher congestion and costs associated with centering operations out of O’Hare. The MKE Airport has a population of nearly 13 million people within a two-hour drive time in Southeast Wisconsin and Chicagoland.

The site was home to the 440^th Air Reserve Base from the 1950s until July of 2010 when it was formally deeded back to the County upon the closure of the base by the Department of Defense. The site has been available for large scale commercial development, however it has remained physically unchanged since, with a variety of small commercial uses repurposing old Air Force buildings on short term leases with Milwaukee Airport are not being renewed.

The Airport had been marketing the site to real estate developers for several years, however Crow Holdings presented a concept that is best aligned with the goals of the Airport’s adopted Master Plan. Crow Holdings has led and financed all efforts to date and will continue to do so after the project progresses through permits and any potential remediation.

The project has since undergone 9+ months of extensive due diligence work to determine site feasibility. Currently, Crow Holdings is working with the Airport, the Air Force, and the WDNR to determine any relevant remedial action needed on the site – the last step in finalizing the viability of the site. Any documented environmental issues with the site will be fully addressed and remediated as part of this redevelopment.

“This rare opportunity to occupy a Class-A, on-airfield product at a major airport will stand out to a great deal of potential tenants,” said Prell. “Being able to meet the needs of modern users will put a new spotlight on the Airport and the strategic advantages it presents.”

According to a recent CBRE report, Transportation comprises 45% to 70% of overall supply chain costs, according to CBRE Supply Chain Advisory, compared with just 3% to 6% for occupancy costs. As a result, industrial properties near airports now command rents that are 18.8% higher than the typical industrial property. Chicago has the fourth highest rent premiums in the country at 23.5% for properties located within a five-mile radius.

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2020 revenue). The company has more than 100,000 employees serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.

About MKE

Milwaukee Mitchell International Airport offers nonstop flights to 30+ destinations coast-to-coast, and more than 200 international destinations are available with one easy connection. MKE is served by Air Canada, Alaska, American, Apple Vacations/Funjet Vacations, Delta, Frontier, JetBlue, Southwest, Spirit, Sun Country, and United. The complete list of nonstop cities can be found at flymke.com. MKE, the winner of a 2021 ASQ Best Airport – North America award for outstanding customer experience, is owned by Milwaukee County and operated by the Department of Transportation, Airport Division, under the policy direction of the Milwaukee County Executive and the County Board of Supervisors. The Airport is entirely funded by user fees; no property tax dollars are used for the Airport’s capital improvements or for its day-to-day operation.