by Dan Rafter
Cassidy Turley held its Indianapolis State of Real Estate Event in January. The news was good, as Indianapolis’ commercial real estate market continues its strong recovery.
The event coincided with Cassidy Turley’s 2014 market outlook for Indianapolis. According to that report, as 2014 begins, economic fundamentals are strong in the Indianapolis area, and this should lead to an event stronger recovery in the area’s CRE markets this year.
The Cassidy Turley report — and State of Real Estate event — had plenty of positives to say about the industrial market in central Indiana. Cassidy Turley reported that in the fourth quarter of 2013, the vacancy rate in the Indianapolis industrial market stood at a low 4.9 percent. The market absorbed more than 1.9 million square feet, according to the report.
The best news from Cassidy Turley regarding this market? Spec construction was strong in the industrial sector in 2013. It should be just as strong in 2014 as developers race to provide space for new tenants hoping to move into the Indianapolis market.
The news wasn’t as good for the office market, of course, as this sector continues to adjust to a new era of downsizing and efficiency increases. According to the report, the vacancy rate in the Indianapolis office market stood at 19.2 percent in the fourth quarter of 2013, with average asking rents standing at $16.97 a square foot. Both of these numbers are improvements from the fourth quarter of 2012, but not by much.
The retail market is showing steady improvement, too. The Indianapolis retail market vacancy rate stood at 7.2 percent in the fourth quarter of 2013, down just a bit from 7.3 percent in the fourth quarter one year earlier.
The takeaway from this January’s State of Real Estate was a positive one: Things are steadily getting better in Indianapolis, as they are throughout much of the rest of the country and the Midwest. And 2014? The experts speaking at Cassidy Turley’s event predicted that this year would be an even stronger one.