JLL: Tenant Demand Pushing Indy Specs

INDIANAPOLIS—Cheap land, a central location and a dense transportation network has made Indianapolis one of the hottest markets for distribution buildings in the US. Developers have 11 buildings, which will total about 6.5-million-square-feet, either under construction or in the planning stages, according to JLL. But current tenant demand remains strong enough to fill even that much space.

The average vacancy rate for bulk distribution space throughout the Indianapolis market was 6.1% at the end of 2013. And the Chicago-based firm’s researchers found fifteen tenants looking for spaces ranging from 100,000-square-feet to 800,000-square-feet, a total of about 7-million-square-feet of space. This would more than fill the 2.5-million-square-feet of spec space recently delivered or under construction and the other 4 million-square-feet of space still in the planning stages.