Indianapolis: A Portrait Of Recovery
The commercial property market in central Indiana has had an exemplary recovery in 2013 and 2014 appears to promise more of the same.
In Colliers’ 2013 year-end report on the Indiana region, the low-tax, low-services state is highlighted with many big industrial property deals in and around Indianapolis. These include:
- An 809,000 s.q.f renewal for Hachette Books in Lebanon, IN
- Chrysler’s single-tenant purchase of 781,000 sq. ft. in Tipton
- the 446,000 sq. ft purchase of the Hillsdale Technical Center in Indianapolis
Race To The Bottom (Of Tax Rates)
Indiana has long subscribed to the idea that economic activity needs to be shepherded by state policy favoring production. The state has a reputation for being aggressive in keeping its low-tax appeal to business, but it’s possible that limits are being encountered in that campaign. One example of the priorities on display: Indiana is one of ten US states that does not have state-funded preschool while at the same time its state legislature is considering foregoing a further billion in tax revenue for schools and local governments by eliminating a property tax on business equipment.
The picture for 2014 politically is less clear than the state’s track record has been: the tax cut proposal from Governor Mike Pence (R), addresses the burgeoning industrial sector, but is getting little traction in the state house Republicans and concern from local mayors.
Cassidy Turley Report: Hot Spec Construction Continues
CRE national firm Cassidy Turley sees strong fundamentals in the Indianapolis area, issuing a raft of positives at a recent event.
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.
In terms of property markets, the Hoosier State’s recovery in 2013 looks terrific in the rearview mirror. Can the state maintain a rosy horizon? Only time will tell.