INDIANAPOLIS—The US industrial market has finally started to experience a solid recovery, but few regions have shown as much strength as Indianapolis. And Cabot Properties and Quadrangle Development Co. have just decided to take advantage of the area's strong demand by starting the development of 650 Commerce, a 470,000-square-foot speculative industrial facility in suburban Greenwood, one of the strongest submarkets. The partners have already begun construction and say tenants could occupy the new building by the first quarter 2015.
Luke J. Wessel, the senior managing director of the Indianapolis office of Cassidy Turley will market the property. McShane Construction Co. and JRA Architecture, Inc. will design and build the facility. Located just 14 miles from downtown Indianapolis, the speculative development will sit within the Precedent South Industrial Park at 650 Commerce Parkway East Dr.
“Situated along the I-65 corridor, 650 Commerce is located in close proximity to downtown Indianapolis, the Indianapolis International Airport and the area's extensive interstate network offering convenience, access and positioning to maximize efficient operations for a variety of users,” said Wesel in a prepared statement. He was not available by press time, but GlobeSt.com will provide an update. “The opportunity for new construction offering a modern design together with a 10-year real estate tax abatement provides outstanding advantages for tenants seeking contemporary industrial space.”
This seems like the perfect time to launch a speculative project. The Indianapolis economy has added over 1,400 transportation and warehousing jobs in the last year, according to statistics recently published by Cassidy Turley. Furthermore, “Indianapolis has not only regained the private-sector jobs shed during the downturn, but the current three-month average for private employment is the highest on record.”
“The Indianapolis industrial market grew by 1.18-million-square-feet in the quarter,” the firm also found, “elevating total net occupancy gains for the year to 1.84-million-square-feet and holding vacancy below the national and Midwestern averages at 5%.”
The 650 Commerce facility will have precast concrete panels that incorporate generous window lines and a modern aesthetic. The 470,000-square-foot cross-dock property will also have 36' clear height, 48 loading docks, two drive-in doors, 50' x 50' column spacing with 50' x 60' staging bays, T5 lighting and an ESFR sprinkler system.
“The industrial sector remains one of the bright spots in commercial real estate today, and there is little reason to believe its strong trajectory will change anytime soon,” Cassidy Turley concludes. “Given the second quarter trends, 2014 is on track to be another year of very robust demand for industrial space, falling vacancy and solid rent growth.”
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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.
