INDIANAPOLIS—The rapid expansion of e-retailing has begun transforming industrial development in the US, and few towns are undergoing as much change as Indianapolis. Its central location has attracted many developers, some of whom feel confident enough to put up vast structures on a speculative basis.
Industrial Developments International took a big leap when it constructed the 795,472-square-foot Building 1 at 6161 Decatur Blvd. in the WorldConnect @ Ameriplex campus. Atlanta-based IDI finished the speculative property earlier this year and has just secured a 412,808-square-foot lease from its initial tenant, Newegg.com, a technology-based e-retailer, according to Cushman & Wakefield / Summit Realty Group, which represented IDI in the transaction. It was Indianapolis' first modern bulk speculative building in years.
“The IDI WorldConnect development is an outstanding alternative to the already well-established distribution markets in the greater Indianapolis area,” says Andrew Morris, executive vice president of Cushman & Wakefield / Summit Realty Group. “Access to ample quality labor and a facility designed with flexibility to meet key security and efficiency demands are the key concerns for distributors in the market and IDI has created a fantastic solution.”
The relatively quick lease should give confidence to other developers taking a look at what already qualifies as a boom town. According to Colliers, “the Indianapolis industrial market delivered more than 2.06-million-square-feet of new investment-grade industrial buildings in the first quarter of 2013, with the vast majority of new product located in the Southwest (Plainfield) and Northwest (Allpoints Anson) submarkets.”
IDI began the new WorldConnect bulk distribution park in 2012 and current plans call for up to four buildings within the development by 2015. WorldConnect Building 2, a 462,000-square-foot facility, is already under construction and officials say major distribution users have shown significant interest.
Summit's Modern Bulk Team of Andrew Morris, Jeremy Woods, and Andrea Hopper partnered with Doug Armbruster and Jeremy Kraus of IDI in the negotiations. Mark Writt and Scott Belfer of CBRE represented Newegg.com.
A newcomer to the Indianapolis area, Newegg.com plans to invest over $15 million in the facility and hire approximately 150 new employees.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
