Spec Developers Stay Active in Midwest
Like several cities, Indy now has a sub-5.0% vacancy rate, and demand has not slowed down.
INDIANAPOLIS—The intense demand for distribution space in key Midwest markets shows no sign of abating, and developers are getting ready to provide even more new supply. Molto Properties recently acquired 16.58 acres of land in the Indianapolis area, and has just begun its second project there.
The site, located at 5610 Stanley Rd. is part of the Ameriplex logistics campus, a 1,700-acre master-planned park developed in a public-private partnership between the City of Indianapolis and Holladay Properties. Due to its proximity to I-70 and the Indianapolis International Airport, national logistics and distribution companies have found it ideal. Two thirds of the US population is within a one-day drive of the property. In addition, FedEx has its second largest US hub at the airport.
“Indianapolis is a strong industrial market with steady demand for quality industrial space that is out pacing the supply,” says Kevin Scott, vice president of Molto Properties.
Avison Young recently released a study on the market, and found a vacancy rate of just 4.8% in the second quarter. Indianapolis also experienced its 25th consecutive quarter of positive absorption, with tenants leasing another 1.8 million square feet. The construction pipeline thinned slightly to 4.1 million square feet under construction, but developers did complete three new large speculative projects.
These projects include a 630,000-square-foot building developed by Molto, also in Ameriplex; another 912,000-square-foot building in Ameriplex, developed by IDI; and a 440,000-square-foot project developed by Exeter Property Group in Whitestown, IN. Exeter was able to fully lease this speculative building before the end of the second quarter.
Molto’s latest will be a cross-dock 246,426 square foot class A speculative industrial building featuring 32’ clear height, four drive in doors, ample parking and trailer stalls, ESFR fire sprinkler system, 3,200 amps of power and LED light fixtures. Construction commenced this fall with a targeted Q 3, 2019 completion date.
Terry Busch and Jared Scaringe of CBRE represented Molto in the transaction. They will also help lease the facility upon completion.