CHICAGO, INDIANAPOLIS—In the past few years, surging demand for distribution space in Indianapolis led many developers to launch huge speculative buildings there, so many that some feared the market had an oversupply. But the big leases have returned, and it looks like the market is also generating a healthy level of demand from smaller users.

In fact, the Chicago-based firm HSA Commercial Real Estate has just leased the last remaining space at Gateway Industrial III, its 220,000 square foot speculative distribution center at 1025 S. Columbia Rd. in suburban Plainfield's Gateway Business Park. Furthermore, company officials are confident enough in the leasing climate to develop this summer another speculative warehouse at Gateway, its fifth and final project in the 40-acre park.

"We a little bit of a dip in the first part of the year," Robert Smietana, vice chairman and chief executive officer of HSA Commercial Real Estate, tells GlobeSt.com. But the temporary dropoff in leasing was mostly felt by operators of facilities with more than 400,000 square feet. "Our buildings are really geared toward users looking for between 40,000 and 50,000 square feet, and we have had a pretty constant stream of opportunities."