by Dan Rafter
How strong is the industrial market in Indianapolis? According to the latest research from JLL, the industrial market here could be primed for a record-setting year.
According to JLL’s latest numbers, the Indianapolis industrial market absorbed 3 million square feet of space during the second quarter of the year. For the first two quarters of the year, then, the industrial market here has grown by 4.7 million square feet. It is set to better last year’s 5.2 million square feet of absorption by the end of the third quarter.
JLL even says that the Indianapolis industrial market might absorb an impressive 8 million square feet in all of 2016. That’s because several large industrial deals are set to close before 2016 ends. If these deals do materialize, the Indianapolis industrial market would see its highest one-year absorption totals in the last decade.
Not surprisingly, developers have been inspired to take on spec projects in this market. JLL says that developers here are ready to begin construction on the Gateway IV, GreeneParke Two and MetroAir 6 industrial projects in the Indianapolis area. Construction crews are already moving dirt on the Sunbeam 2 project. Two other industrial projects, 998 Gerdt Court and Project I-65, will both come online during the third quarter of this year.
Investors have been even busier. JLL says that 17 industrial investment transactions have already closed during the first half of 2016. These deals have involved more than 7 million square feet of industrial product. Investment sales have closed in almost two-thirds of the industrial submarkets in Indianapolis.
The raw numbers are equally as impressive. The industrial vacancy rate fell to 6.7 percent in the Indianapolis market. JLL says that this is the lowest this number has been since 2012. Manufacuring currently boasts the lowest vacancy rate at 5.5 percent, while the mid-sized warehouse end of the market has seen its vacancy rate drop to 5.7 percent.