by Dan Rafter
Indianapolis has long benefited from a strong industrial market. This isn’t surprising: The city’s central location makes an ideal spot for companies shipping their products across the country.
The latest research from Colliers International, though, shows that the Indianapolis industrial market today is as strong as it’s ever been.
According to Colliers’ numbers, the vacancy rate in the area’s industrial market fell to 5.8 percent in the second quarter of this year. That’s down from 7.25 percent a year ago. Direct asking rents rose, too, by 1.8 percent during the same time.
Then there is absorption. The Indianapolis market absorbed more than 5.7 million square feet in the second quarter and 7.3 million square feet for the entire year so far. Colliers says that large industrial transactions made the difference, with seven transactions averaging 380,080 square feet of newly leased square footage were signed in the last three months.
That’s a much bigger average than in the first quarter of the year, when the Indianapolis industrial market saw 14 new modern bulk leases signed that averaged 170,728 square feet each, according to Colliers.
Don’t expect the trend of bigger industrial transactions to lessen. Colliers says that 30 companies averaging 350,000 square feet are shopping the Indianapolis market for 11.1 million square feet.