by Dan Rafter
The Indianapolis industrial market’s boom times are far from over, at least according to the numbers released recently by Cushman & Wakefield.
The Indianapolis industrial market reached a record level of occupancy gains in the third quarter, according to Cushman & Wakefield. Cushman reported that the Indianpolis industrial market saw more than 3.4 million square feet of net absorption during the third quarter.
That brings the market’s year-to-date absorption to nearly 6.4 million square feet.
And don’t expect this market to slow any time soon.
“We expect net absorption to continue at a steady pace, as several sizeable industrial deals have been signed but have not yet taken occupancy,” said Trevor Kirsh, research analyst in Cushman & Wakefield’s Indianapolis office.
Cushman reported that the overall vacancy rate in the Indianapolis office market fell to 3.6 percent in the third quarter. The Southwest submarket ranked as the strongest, with 1.7 million square feet of net absorption. The Northwest submarket was strong, too, with 1.4 million square feet of net absorption.
As vacancy rates fall, rental rates are heading in the opposite direction. Cushman & Wakefield reported that average asking rents for Indianapolis-area industrial properties stood at $4.20 a square foot in the third quarter. That is up from an average of $4.09 in the third quarter of 2015.
For the future? Cushman & Wakefield said to expect “a flurry of construction to be delivered in the coming quarters,” as nearly 6.1 million square feet of industrial construction is underway in the Indianapolis market.