INDIANAPOLIS—Like most of the US, the metro area of Indianapolis has continued an economic expansion and is finally nearing its potential, according to a series of new reports by Cassidy Turley. Indianapolis retailers especially have started to see solid improvements that track with overall US trends. The Consumer Confidence Index, the researchers point out, which often predicts increased consumer spending, rose in June to its highest level since January 2008, and “as consumption and demand intensifies over the latter half of the year, leasing activity will likely accelerate and strengthen an already much-improved Central Indiana retail market.”
The Indianapolis retail market saw 161,689-square-feet of net absorption in the second quarter, and greater deal velocity helped push overall vacancy down to 6.9%, below the historical average of 7.3%, its lowest level since before the recession, Cassidy Turley found. Furthermore, this recovery seems to have a broad geographic base. “Examination of trade area metrics confirms that eleven of the fifteen prime trade areas have seen occupancy increase, and all trade areas have witnessed improved fundamentals so far this year.”
And even though malls and power centers have the lowest vacancy rates, it was the neighborhood and community centers that posted the strongest year-over-year improvements in vacancy.
“Some of the most notable leasing of the year has been within the grocery segment where grocers such as Kroger, Fresh Thyme Farmers Market, Earth Fare and ALDI have signed deals,” the researchers found. “We also continue to see strong activity at both ends of the economic spectrum. Luxury retail sales look good, and discounters and off-price apparel sales remain solid.” However, middle-market retailers have continued to struggle like they have in many cities, partly due to the rise of e-commerce and partly due to the “missing middle-class consumer.”
But “sustained improvement in economic fundamentals will translate into less frugality among middle-class shoppers and support improved mid-priced retail sales, although the pace of improvement will be slow.”
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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.
