{"id":1004749131,"date":"2025-03-13T02:17:04","date_gmt":"2025-03-13T10:17:04","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004749131"},"modified":"2025-03-13T04:55:46","modified_gmt":"2025-03-13T12:55:46","slug":"indianapolis-industrial-sector-fell-short-in-2024","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/indianapolis-industrial-sector-fell-short-in-2024\/","title":{"rendered":"Indianapolis Industrial Sector Fell Short in 2024"},"content":{"rendered":"\n

In 2024, Indianapolis’ industrial sector struggled, with most metrics falling below the national average. The metro recorded the lowest annual sales volume and least amount of square footage delivered among its peers.<\/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

Despite these setbacks, there was a notable increase in the under-construction pipeline, which reached 4.5 million square feet as of January. The jump marked a significant increase from the previous January, when a single project measuring 300,000 square feet was underway.<\/p>\n\n\n\n

Projects, such as Ely Lily and Co.’s campus at the LEAP Research and Innovation District in Lebanon, Ind., are helping to sustain the market’s pipeline. In May, the company announced an additional $5.3 billion investment<\/a>, building on the $3.7 billion already committed.<\/p>\n\n\n\n

Later in the year, the firm revealed plans for the $4.5 billion Lily Medicine Foundry<\/a>, the first facility to integrate research and manufacturing. These developments are keeping the market afloat and demonstrate a commitment to innovation and growth.<\/p>\n\n\n\n

Smallest development pipeline among peer markets<\/h2>\n\n\n\n

Indianapolis’ industrial sector had nearly 4.5 million square feet under construction at the end of 2024, according to CommercialEdge data. These projects accounted for 1.2 percent of the market’s total inventory, slightly below the national average of 1.7 percent.<\/p>\n\n\n

\n
\"simtra<\/a>
Simtra BioPharma Solutions is expanding its sterile fill\/finish manufacturing campus in Bloomington, Ind. Image courtesy of Simtra BioPharma Solutions<\/em>
<\/figcaption><\/figure><\/div>\n\n\n

Compared to its peers, Indianapolis had the smallest amount of space underway. Phoenix ranked first with 22.3 million square feet, followed by Dallas (18.9 million square feet) and Houston (12.4 million square feet).<\/p>\n\n\n\n

Early last year, Simtra BioPharma Solutions announced an expansion exceeding $250 million<\/a> for its sterile fill\/finish manufacturing campus in Bloomington, Ind. The new 150,000-square-foot facility is expected to be operational by this summer.<\/p>\n\n\n\n

Another facility that is expected to come online this year is Sephora\u2019s build-to-suit distribution center<\/a> in Avalon, Ind. Developed by VanTrust Real Estate, the 746,672-square-foot facility broke ground last year and is part of the firm\u2019s Avon Landings Commerce Park.<\/p>\n\n\n\n

Completions remain below national figures<\/h2>\n\n\n\n

In 2024, Indianapolis had 6.1 million square feet in industrial completions<\/a> across 13 properties, accounting for about 1.6 percent of total stock. This figure was below the national average of 1.9 percent.<\/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

Among its peer markets, Indianapolis had the least amount of new industrial space delivered last year. Phoenix led with 36 million square feet, followed by Dallas with 27.6 million square feet and Chicago with 14.9 million square feet.<\/p>\n\n\n\n

Deliveries are expected to remain steady in 2025, as 4.2 million square feet of industrial space broke ground last year and are slated for delivery.<\/p>\n\n\n\n

This quarter, Ambrose Property Group completed Building III, a 233,000-square-foot facility in Whitestown, Ind., within the Indianapolis Logistics Park Northwest. The first phase of the campus will comprise three buildings totaling more than 700,000 square feet.<\/p>\n\n\n\n

Indy asset prices less than half the U.S. average<\/h2>\n\n\n\n

In 2024, the Indianapolis industrial real estate investment volume<\/a> amounted to $320.7 million in sales from the 46 assets totaling 4.4 million square feet that changed hands. This placed the metro behind all its peer markets.<\/p>\n\n\n

\n
\"Park-130-at-Whitestown-Building-3\"<\/a>
Frito Lay, a division of PepsiCo, operates a distribution center at Park @ Whitestown Building 3. Image courtesy of CBRE <\/em><\/figcaption><\/figure><\/div>\n\n\n

On average, Indianapolis assets traded for $73 per square foot, significantly lower than the national average of $167 per square foot. The Bay Area recorded the highest sale prices nationally at $414 per square foot, followed by Orange County ($314 per square foot) and Los Angeles ($294 per square foot).<\/p>\n\n\n\n

In January, Libitzky Property Cos. acquired <\/a>Park 130 @ Whitestown Building 3, a 319,336-square-foot facility in Whitestown, for $28.4 million. Sold by EQT Exeter, the property houses a distribution center operated by Frito-Lay.<\/p>\n\n\n\n

Vacancy rates continue to rise<\/h2>\n\n\n\n

As of January this year, Indianapolis’ average industrial vacancy rate stood at 9.1 percent, marking a 650-basis-point increase from the previous year. This rate was also 1.1 percent higher than the national average. Among its peers, Orange County (5.0 percent) posted the lowest figure, followed by Atlanta (7.2 percent) and the Inland Empire (7.9 percent).<\/p>\n\n\n

\n
\"Building<\/a>
Cummins is leasing Building 6 at the 475-acre Mohr Logistics Park in Whiteland, Ind. Image courtesy of Mohr Capital<\/em>
<\/figcaption><\/figure><\/div>\n\n\n

In May, Cummins Inc. leased a 1.1 million-square-foot building<\/a> at Mohr Logistics Park, a 475-acre industrial campus. Mohr Capital completed the building in 2023.<\/p>\n\n\n\n

As of January, the average listing rate within the Indianapolis metro was $4.9, notably lower than the national average of $8.4. Among peer markets, Orange County ($16.6) had the highest rate, trailed by Los Angeles ($15) and the Bay Area ($13.5).<\/p>\n","protected":false},"excerpt":{"rendered":"

The market’s metrics lagged national trends, according to CommercialEdge data.<\/p>\n","protected":false},"author":3355,"featured_media":1004704294,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21782,22251,1590,21748,21783,52420,13,21742],"tags":[51047,50674],"class_list":["post-1004749131","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-development","category-in-focus","category-indianapolis","category-industrial","category-investment","category-market-updates","category-midwest","category-latest","tag-marketupdate","tag-commercialedge"],"acf":[],"yoast_head":"\nIndianapolis Industrial Sector Fell Short in 2024 - Commercial Property Executive<\/title>\n<meta name=\"description\" content=\"Indianapolis' industrial sector lagged behind national trends in terms of development, completions and sales, according to CommercialEdge.\" \/>\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-sector-fell-short-in-2024\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Indianapolis Industrial Sector Fell Short in 2024\" \/>\n<meta property=\"og:description\" content=\"Indianapolis' industrial sector lagged behind national trends in terms of development, completions and sales, according to CommercialEdge.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/indianapolis-industrial-sector-fell-short-in-2024\/\" \/>\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=\"2025-03-13T10:17:04+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-03-13T12:55:46+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/02\/Simtra-BioPharma-Solutions-campus.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"799\" \/>\n\t<meta property=\"og:image:height\" content=\"600\" \/>\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-sector-fell-short-in-2024\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/indianapolis-industrial-sector-fell-short-in-2024\/\",\"name\":\"Indianapolis Industrial Sector Fell Short in 2024 - 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