One year after the closure of Carson’s at Circle Centre, city and mall officials are still looking for the right tenant—or mix of tenants—to fill the massive footprint.
Vacancy rates in both sectors continued to shrink in the first quarter as office and industrial tenants consumed more leased space.
A sturdy office sector, hot industrial demand and some steamy retail categories are expected to boost Indy’s commercial real estate market in 2018.
The Indianapolis-area industrial market ended the year with vacancy of just 3 percent, nearly half of what it was at the end of 2015. The upshot: More properties are needed, and several million square feet of space are in the pipeline.
Mission Peak Capital sees a big upside in spiffing up the buildings near Cummins’ new office project and a planned 28-story apartment building.
With Salesforce.com establishing a 250,000-square-foot regional headquarters in the soon-to-be-christened Salesforce Tower Indianapolis, the building should become much more alluring when its owner shops it for sale.
Research from one brokerage shows office vacancy in the metro area dipping to 15.6 percent last quarter, the lowest rate since 2008.
The 2.2-million-square-foot development would add to the growing inventory of industrial buildings, which is causing vacancy in the sector to tick up.
Struggling retailer Abercrombie & Fitch has closed four of its five stores in Indiana, including Indianapolis locations at Circle Centre and the Fashion Mall at Keystone.
The 48-story Chase Tower, the state’s tallest office building, has more vacant space than it has had in decades. But increasing speculation in the local office market that Salesforce.com will take a big chunk of space there could mean it is poised for a turnaround.
For businesses looking for small offices, Fishers is practically booked up. The demand for office spaces of 5,000 square feet to 10,000 square feet has ramped up recently in the fast-growing suburb, but supply hasn’t kept pace.
Instead of building new medical office buildings, cost-conscious Indianapolis-area hospital systems have the past few years opted for space in existing buildings.
After buying 500 N. Meridian in June, Ambrose Property Group has snagged three major tenants from OneAmerica Tower.
The real estate developer of commercial properties posted increases due to higher occupancy and growth in rents.