Eastgate owner plots unusual office-space strategy

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The owner of the former Eastgate shopping center has begun marketing a third phase of its mall overhaul: About 225,000 square feet of emergency backup office space.

Companies will have the option of reserving "disaster recovery" office space to their specifications that would be immediately available in the event of a fire or natural disaster affecting their existing space, said Doug Theis, a vice president at locally based Lifeline Data Centers, which bought the 40-acre property in 2008.

The most likely tenants are call center operations where employees generally aren't able to work off-site in the event of an emergency, Theis said. Each tenant also would have access to data center space.

Lifeline already has opened an 80,000-square-foot data center in a former Burlington Coat Factory store and has agreed to lease about 76,000 square feet of secure space to the city's Department of Public Safety for a new emergency operations center.

The backup office space will be spread over five buildings, large enough to accommodate several small tenants or a few big ones, Theis said.

"We're offering a very simple custom solution," he said. "We've always had the hallucination there was a need for office space next to data-center space."

Backup office space is rare in the Indianapolis market, in part because there's plenty of space for lease that could be quickly customized.

An offering that's similar to the plans for Eastgate is a 200-seat office near the Lilly Technology Center at Kentucky Avenue and West Morris Street. The center is operated by Wayne, Penn.-based Sungard Availability Services.

Emergency office space operators typically book several tenants for the same backup space, assuming not everyone will need it at once, Theis said. At Eastgate, tenants will have the option of their own customized space.

Rich Forslund, a senior vice president at Summit Realty Group, applauded the effort to find a new use for the space, though he's not sure there's much demand for it. He said the space could serve as a "temporary expansion site" while a growing company looks for permanent space.

"It's a great way to absorb some product," Forslund said. "It's one of those things that's just sitting there, such a large, vacant building."

Not everyone is convinced there's a demand for office space of any kind at Eastgate.

"I just don't see where a decision-maker for a company is going to want to be at Eastgate," said Jon Owens, a senior vice president at Cassidy Turley. "There's a reason we don't have any office inventory on the east side."

Eastgate, which was built in 1957, was once among the city’s premier shopping destinations. It was enclosed around 1970 to keep up with newer malls, but its fate was sealed by the construction of Washington Square Mall a few miles to the east in 1974.

In 1982, Simon Property Group—then known as Melvin Simon & Associates—bought the property, remodeled it and repositioned it as a discount retail center. Simon sold it in 2002 to a North Carolina investor. But by then it was in need of major reinvestment that never materialized.


  • Clean-up Phase?
    Which phase of this project will involve cleaning up and enhancing the exterior of the complex? It still looks like an abandoned mall. A lick of paint and some landscaping like the early schematics showed would go a long way to making this area at least look like someone cared about it.
  • Ambitious
    The need for office on eastside is minimal. There's a reason office inventory in this submarket is minimal, it's all industrial. Between your needed parking lot repairs and conversion, it will be a very long time before you realize a return.
  • Eastwaste
    this will be an i told you so. buy it, lease it out, default, and bk. bulldoze it.

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  1. If I were a developer I would be looking at the Fountain Square and Fletcher Place neighborhoods instead of Broad Ripple. I would avoid the dysfunctional BRVA with all of their headaches. It's like deciding between a Blackberry or an iPhone 5s smartphone. BR is greatly in need of updates. It has become stale and outdated. Whereas Fountain Square, Fletcher Place and Mass Ave have become the "new" Broad Ripples. Every time I see people on the strip in BR on the weekend I want to ask them, "How is it you are not familiar with Fountain Square or Mass Ave? You have choices and you choose BR?" Long vacant storefronts like the old Scholar's Inn Bake House and ZA, both on prominent corners, hurt the village's image. Many business on the strip could use updated facades. Cigarette butt covered sidewalks and graffiti covered walls don't help either. The whole strip just looks like it needs to be power washed. I know there is more to the BRV than the 700-1100 blocks of Broad Ripple Ave, but that is what people see when they think of BR. It will always be a nice place live, but is quickly becoming a not-so-nice place to visit.

  2. I sure hope so and would gladly join a law suit against them. They flat out rob people and their little punk scam artist telephone losers actually enjoy it. I would love to run into one of them some day!!

  3. Biggest scam ever!! Took 307 out of my bank ac count. Never received a single call! They prey on new small business and flat out rob them! Do not sign up with these thieves. I filed a complaint with the ftc. I suggest doing the same ic they robbed you too.

  4. Woohoo! We're #200!!! Absolutely disgusting. Bring on the congestion. Indianapolis NEEDS it.

  5. So Westfield invested about $30M in developing Grand Park and attendance to date is good enough that local hotel can't meet the demand. Carmel invested $180M in the Palladium - which generates zero hotel demand for its casino acts. Which Mayor made the better decision?