Market sees 2.95 million square feet of net absorption, the highest since 2007
Indianapolis, IN – April 12, 2016 – The Indianapolis industrial market began 2016 strong with 2.95 million square feet of net absorption for the first quarter, the highest quarterly gain since Q4 2007, according to CBRE’s Industrial MarketView. Most of the gains in the last quarter were realized in warehouse buildings, specifically modern bulk distribution buildings.
“With bulk warehouse making up nearly half of the Indianapolis industrial market, to move the needle, this is where the activity needs to be and the last quarter did not disappoint,” said Jeremy Woods, first vice president at CBRE’s Indianapolis office. “Combining completed transactions with the level of current market activity, 2016 is shaping up to be a solid year for the Indianapolis industrial market with significant, positive absorption expected to continue its upward trend.”
Other highlights of the report include:
Vacancy and availability rates both declined significantly quarter-over-quarter and year-over-year, at 6.7 percent and 8.5 percent, respectively. The 6.7 percent vacancy rate is the second lowest recorded in the last ten years for the metro.
Average asking lease rates rebounded after a four-quarter slide at $4.12 per square feet.
Leasing activity was robust for the quarter with more than 4.2 million square feet of leases signed. This is an increase of about 1.8 million square feet over both the last quarter and the same period last year.
Moderate job growth continues coupled with higher labor force participation.
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