INDIANAPOLIS—In the past several years, this city and the surrounding region have built up a record as one of the hottest industrial markets in the US, with a robust demand and an active cadre of developers. However, the vacancy rate has remained steady at 7.1% in the past year, according to a new report from CBRE. But this is still significantly below the national average, and experts say the current level of vacancy is not a mystery.

“It's obviously the result of all the new speculative buildings,” Mark Writt, senior vice president of CBRE, tells GlobeSt.com. “It's always a tricky thing to know whether prospective tenants will still be in the market when your building is ready, or will they have taken space in existing buildings.”

Still, like other experts that have spoken to GlobeSt.com, Writt is confident that the demand is there to fill up the new speculative projects. In fact, he says that the firm has seen a pick-up in activity in the first few weeks of the second quarter. For example, NorthPoint Development's new 741,000 square-foot spec in northwest suburban Lebanon will probably be ready by June and has attracted its share of interest, including tours with four different groups, he says.