{"id":1004731284,"date":"2024-10-03T04:45:00","date_gmt":"2024-10-03T12:45:00","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004731284"},"modified":"2024-10-04T06:13:03","modified_gmt":"2024-10-04T14:13:03","slug":"indianapolis-industrial-scene-sends-mixed-signals","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/indianapolis-industrial-scene-sends-mixed-signals\/","title":{"rendered":"Indianapolis Industrial Scene Sends Mixed Signals"},"content":{"rendered":"\n

The Indianapolis industrial sector continues to benefit from increased demand in e-commerce and logistics, along with strategic corporate expansions. However, headwinds such as supply chain disruptions have put pressure on the market.<\/p>\n\n\n

\n
\"The<\/a>
Sephora\u2019s Midwest distribution center will come online next summer. Image courtesy of VanTrust Real Estate<\/em><\/figcaption><\/figure><\/div>\n\n\n

Deliveries in the metro decreased significantly, with only 6.1 million square feet coming online year-to-date through August, marking a more than 50 percent drop year-over-year, CommercialEdge data shows. However, the under-construction pipeline slightly increased, with 2.3 million square feet underway, up from 1.9 million square feet registered during the same period last year.<\/p>\n\n\n\n

Additionally, the metro\u2019s industrial vacancy rate is also on the rise. The rate reached 6.3 percent in August, slightly below the 6.7 percent national average, but more than twice the 2.5 percent recorded that same month last year.<\/p>\n\n\n\n

Indy deliveries halve year-over-year<\/h2>\n\n\n\n

Indianapolis\u2019 industrial sector saw 13 properties delivered year-to-date through August, totaling 6.1 million square feet. This accounts for 1.6 percent of total stock, slightly above the 1.3 percent U.S. figure, but less than half the metro\u2019s 13.8 million square feet completed during 2023\u2019s same period.<\/p>\n\n\n\n

The metro surpassed Atlanta and New Jersey, each having 5.8 million square feet in deliveries. The Inland Empire (19.2 million square feet), Phoenix (20.2 million square feet) and Dallas (22.8 million square feet) led nationwide.<\/p>\n\n\n\n

Earlier this year, a joint venture between Browning and Prologis completed Subaru of America\u2019s 1.1 million-square-foot distribution center in Zionsville, Ind. The developer took out a $78 million construction loan for this project, CommercialEdge shows.<\/p>\n\n\n\n

New projects boost pipeline<\/h2>\n\n\n\n

The Indianapolis industrial market registered almost 2.3 million square feet of space under construction at the end of August, spanning eight projects and accounting for 0.6 percent of the metro\u2019s total inventory\u2014placing it below the 1.8 percent national average. Indianapolis lagged peer markets, with New Jersey (7.0 million square feet), Atlanta (8.2 million square feet) and Chicago (9.5 million square feet) faring better, while Phoenix remained in the lead with 34.9 million square feet underway.<\/p>\n\n\n\n

Year-to-date through August, five properties totaling 1.7 million square feet broke ground in Indianapolis, about 0.4 percent of the market\u2019s stock. This figure is on par with the 0.7 percent U.S. average.<\/p>\n\n\n

\n
\"Aerial<\/a>
Eli Lilly\u2019s campus at LEAP Research and Innovation District in Lebanon, Ind., will include manufacturing facilities for antidiabetic and weight loss drugs. Rendering courtesy of Eli Lilly and Co.<\/em><\/figcaption><\/figure><\/div>\n\n\n

One of the largest developments that started going vertical this year is Sephora\u2019s Midwest distribution center<\/a>. The beauty retailer tapped VanTrust Real Estate to construct its 746,672-square-foot build-to-suit facility in Avon, Ind., which is expected to be delivered next summer.<\/p>\n\n\n\n

In May, pharmaceutical company Eli Lilly and Co. invested an additional $5.3 billion<\/a> at its 600-acre campus in Lebanon, Ind. The firm\u2019s site is within the 9,000-acre LEAP Research and Innovation District and is set to include manufacturing facilities for antidiabetic and weight loss drugs.<\/p>\n\n\n\n

Indianapolis industrial sale prices go up<\/h2>\n\n\n\n

Year-to-date through August, the Indianapolis market recorded $252 million in industrial deals. The average trading price was $93 per square foot, significantly lower than the $132 national average. Although sales nearly halved year-over-year, the average sale price per square foot rose by $12.<\/p>\n\n\n

\n
\"Property<\/a>
In July, Lincoln Property Co. acquired a 146,640-square-foot facility that is part of the AllPoints at Anson industrial park. Image courtesy of Colliers<\/em> <\/figcaption><\/figure><\/div>\n\n\n

The metro fared worse than all peer markets. Dallas ($3.0 billion), Chicago ($1.9 billion) and Phoenix ($1.6 billion) were at the opposite pole.<\/p>\n\n\n\n

In May, Nuveen Real Estate purchased a two-building portfolio<\/a> in Plainfield, Ind., from HSA Commercial Real Estate. The properties totaling 371,200 square feet are part of Gateway Business Park.<\/p>\n\n\n\n

Two months later, Lincoln Property Co. sold 4321 Albert S. White Parkway<\/a>, a 146,640-square-foot facility in Whitestown, Ind. Battery manufacturing company SungEel HiTech acquired the recently completed asset, according to CommercialEdge.<\/p>\n\n\n\n

Vacancy rate continues to rise<\/h2>\n\n\n
\n
\"Building<\/a>
In May, Cummins leased Building 6 at the 475-acre Mohr Logistics Park in Whiteland, Ind. Image courtesy of Mohr Capital<\/em><\/figcaption><\/figure><\/div>\n\n\n

The average listing rate during the same month was $4.88, an 8.0 percent increase from August last year. The market\u2019s rate was below the $8.11 U.S. figure and those registered in Dallas ($6.09) and Atlanta ($5.86).<\/p>\n\n\n\n

Indianapolis\u2019 industrial vacancy rate at the end of August clocked in at 6.3 percent, 40 basis points below the national average and considerably above the 2.5 percent rate registered in 2023\u2019s same month. Among peer markets, Phoenix (5.6 percent) registered the lowest vacancy, followed by Atlanta (5.8 percent), Dallas (7.7 percent) and New Jersey (8.1 percent).<\/p>\n\n\n\n

In May, global power solutions company Cummins Inc. fully leased a 1.1 million-square-foot building<\/a> at Mohr Logistics Park, a 475-acre industrial campus. Mohr Capital recently completed the facility.<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Deliveries declined by more than half year-over-year through August, CommercialEdge data shows.<\/p>\n","protected":false},"author":3355,"featured_media":1004720928,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21782,22251,1590,21748,52420,13,21742],"tags":[51047,50674],"class_list":["post-1004731284","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-development","category-in-focus","category-indianapolis","category-industrial","category-market-updates","category-midwest","category-latest","tag-marketupdate","tag-commercialedge"],"acf":[],"yoast_head":"\nIndianapolis Industrial Scene Sends Mixed Signals - Commercial Property Executive<\/title>\n<meta name=\"description\" content=\"Indianapolis industrial deliveries more than halved year-over-year through August, with only 6.1 million square feet completed.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/indianapolis-industrial-scene-sends-mixed-signals\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Indianapolis Industrial Scene Sends Mixed Signals\" \/>\n<meta property=\"og:description\" content=\"Indianapolis industrial deliveries more than halved year-over-year through August, with only 6.1 million square feet completed.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/indianapolis-industrial-scene-sends-mixed-signals\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2024-10-03T12:45:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-10-04T14:13:03+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/07\/Sephora_AvonLandingsRenderingcopy2.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"750\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Vicentiu Fusea\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/indianapolis-industrial-scene-sends-mixed-signals\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/indianapolis-industrial-scene-sends-mixed-signals\/\",\"name\":\"Indianapolis Industrial Scene Sends Mixed Signals - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/indianapolis-industrial-scene-sends-mixed-signals\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/indianapolis-industrial-scene-sends-mixed-signals\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/07\/Sephora_AvonLandingsRenderingcopy2.jpg\",\"datePublished\":\"2024-10-03T12:45:00+00:00\",\"dateModified\":\"2024-10-04T14:13:03+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/6f90c90d1e85956f06679ddabc844412\"},\"description\":\"Indianapolis industrial deliveries more than halved year-over-year through August, with only 6.1 million square feet completed.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/indianapolis-industrial-scene-sends-mixed-signals\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/indianapolis-industrial-scene-sends-mixed-signals\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/indianapolis-industrial-scene-sends-mixed-signals\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/07\/Sephora_AvonLandingsRenderingcopy2.jpg\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/07\/Sephora_AvonLandingsRenderingcopy2.jpg\",\"width\":1000,\"height\":750,\"caption\":\"Sephora\u2019s Midwest distribution center will come online next summer. 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