by Dan Rafter
How strong was Indianapolis’ industrial market in 2015? It depends on which half of the year you look at.
CBRE recently released its fourth quarter Indianapolis industrial market overview, finding that the first half of 2015 was a busy one for the region’s industrial market. According to CBRE’s report, the first half of 2015 saw 3.5 million square feet of industrial space absorbed in the Indianapolis market.
The second half of the year? Those six months were quieter, with the market seeing 1.4 million square feet of industrial absorption.
Still, even with the second-half slowdown, the Indianapolis market enjoyed a busy industrial year.
CBRE reported that 5.6 million square feet of new industrial construction hit the Indianapolis market in the first six months of 2015. In the second half of the year, this market saw 1.5 million square feet of new industrial construction.
For the entire year, then, the Indianapolis market saw more than 7 million square feet of new industrial construction.
Of course, 2015 is over. What does 2016 hold for the region’s industrial market? CBRE predicts that the overall Indianapolis industrial vacancy rate should drop to less than 7 percent by the end of 2016. CBRE says that for 2016 gross absorption of speculative and existing industrial space should be about 3 million square feet.