2012 Global Market report - NAI Global

Fort Wayne, Indiana
Indianapolis, Indiana
Contact
NAI Harding Dahm
+1 260 423 4311
Metropolitan Area
Economic Overview
2011
Population
2016 Estimated
Population
Employment
Population
Household
Average Income
Median
Household Income
419,733
433,290
220,696
$61,766
$50,495
The economic climate of the Fort Wayne market has
remained constant through 2011 with an unemployment
rate in the six-county MASMSA at 8.1%. Fort Wayne
continues to revitalize its downtown. A $30 million baseball
stadium, 900-space parking garage and a $35 million
Courtyard by Marriott have been completed. A $14.5 million
residential condominium/retail complex is expected to break
ground in 2012 along with a $15 million redevelopment of
the Anthony Wayne Building.
The retail market slowed in 2011 with overall vacancy rates
increasing to 19%. The strongest major retail submarkets
are on the Dupont and Lima Road corridors in the northern
section of the city and along Illinois Road in the southwest
section. The completed widening of Lima Road should help
to increase retail activity along that corridor. Kroger has
invested $80 million to rebuild two 125,000 SF Marketplace
stores at Dupont and Coldwater Road and at the Village
of Coventry at I69 and West Jefferson Boulevard. The
Maplecrest Road extension, connecting the northeast
residential markets with New Haven, will be completed by
2012 and should help lead to future retail development.
The industrial market has seen an increase in activity of sale
and lease transactions with vacancy rates in this sector
decreasing to 9.6%. There has been very little construction
in this sector over the past few years and little is planned
for 2011. This should remain the constant until there are
improvements in economic conditions and the financial
markets.
The office market is stable with vacancy rates remaining
constant at 17%. There has been very little construction in
the office industry, but the market is experiencing strong
growth in the medical office space submarket as Parkview
Hospital continues its construction of a new regional medical
center in the I-69/Dupont interchange. Both Parkview and
Lutheran Hospitals continue to expand with new medical
office buildings on their respective campuses. We project
this market will continue to remain status quo due
to economic conditions over the next few years with
unemployment remaining close to current levels within the
six-county MASMSA.
Contact
NAI Meridian
+1 317 875 8888
Metropolitan Area
Economic Overview
2011
Population
2016 Estimated
Population
Employment
Population
Household
Average Income
Median
Household Income
1,783,661
1,893,503
955,436
$72,526
$55,440
The Indianapolis metro area continues to have a steady flow
of transactions across all market segments. Although new
construction in the multi-tenant sector is nonexistent.
Consolidations are still influencing the market and while
overall vacancies have seen little change, finding large
tracks of space is becoming more difficult in both the office
and industrial markets.
The metro office markets are experiencing steady deal flow
but little positive absorption. Many users are still downsizing
or adding employees to their existing space reducing the
need for more office space. While absorption is neutral, it is
difficult to find large tracts of desirable space which will
begin adding rental rate pressure to larger tenants in the
market.
The industrial market in metro Indianapolis has remained
resilient in this challenging economic environment. YTD
absorption has been 5,489,424 SF with an overall vacancy
rate of 7.6%. The industrial market encompasses
298,582,634 SF. New construction is slim with only 87,000
SF underway. However, large tracts of space are difficult to
find and we expect new construction to increase in the
spring of 2012 to meet the demand of large users.
The retail markets showed a slight uptick in Q3 2011 with
a reduction in the vacancy rate from 7.85% to 7.68%.
Positive absorption was 210,943 SF for the quarter, with
just under 78,000 SF of new retail construction for the end
of Q3. Vacant sublease space is still influencing this market
segment with over 35,000 SF of sublease space on the
market.
Land in the CBD is currently at $135,939/acre low and
$1,232,155/acre high. But there were no transactions of
sold land in the CBD this year so these are historical
numbers. There is one transaction pending for $3,254,237
for 1.18 acres. Land in office parks is selling for
$158,792/acre low and $181,137/acre high. Industrial park
land is at $68,181/acre low and $218,978/acre high (value
is higher due to future development potential.) Non park land
sells at $31,645/acre low and $600,000/acre high. Land
in the retail market is currently at $55,000/acre low and
$419,463/acre high.
Total Population
Median Age
35
Total Population
Median Age
35
Fort Wayne At A Glance
(Rent/SF/YR) low High effective avg. Vacancy
doWntoWn offIce
New Construction (AAA)
Class A (Prime)
Class B (Secondary)
suburban offIce
New Construction (AAA)
Class A (Prime)
$
$
$
$
N/A
15.00
8.00
13.00
15.00
$
$
$
$
N/A
16.00
12.00
17.50
19.00
N/A
$ 14.00
$ 10.00
$ 15.25
$ 17.00
N/A
15.00%
15.00%
75.00%
20.00%
Class B (Secondary)
IndustrIal
Bulk Warehouse
Manufacturing
High Tech/R&D
retaIl
Downtown
$
$
$
$
$
8.00
1.00
2.75
3.50
7.00
$
$
$
$
$
10.50
3.00
4.75
5.50
12.00
$
$
$
$
$
9.25
2.00
3.63
4.50
9.50
15.00%
10.00%
10.00%
10.00%
14.00%
Neighborhood Service Centers
Community Power Center
Regional Malls
$
$
$
5.00
6.00
10.00
$
$
$
18.00
22.00
35.00
$ 11.50
$ 14.00
$ 22.50
22.00%
15.00%
14.00%
deVeloPment land Low/Acre High/Acre
Office in CBD
Land in Office Parks
Land in Industrial Parks
Office/Industrial Land - Non-park
$
$
$
N/A
110,000.00
44,000.00
65,000.00
$
$
$
N/A
175,000.00
125,000.00
120,000.00
Retail/Commercial Land
$ 250,000.00 $ 1,000,000.00
Residential
$ 10,000.00 $ 40,000.00
Indianapolis At A Glance
(Rent/SF/YR) low High effective avg. Vacancy
doWntoWn offIce
New Construction (AAA)
Class A (Prime)
Class B (Secondary)
suburban offIce
New Construction (AAA)
Class A (Prime)
Class B (Secondary)
IndustrIal
Bulk Warehouse
Manufacturing
High Tech/R&D
retaIl
Downtown
Neighborhood Service Centers
Community Power Center
Regional Malls
$
$
$
$
$
$
$
$
$
$
$
N/A
16.00
9.00
N/A
16.00
10.00
2.22
3.61
7.50
6.00
4.00
4.50
8.00
$
$
$
$
$
$
$
$
$
$
$
N/A
27.00
15.00
N/A
24.00
15.50
6.17
4.75
14.25
24.25
26.50
28.00
35.00
$
$
$
$
$
$
$
$
$
$
$
N/A
19.06
14.25
N/A
18.25
14.00
3.49
4.17
11.15
13.40
12.17
13.76
24.00
N/A
17.00%
22.00%
N/A
21.00%
24.00%
7.00%
4.00%
14.00%
32.00%
18.00%
17.00%
13.00%
deVeloPment land Low/Acre High/Acre
Office in CBD
$ 135,939.00 $ 1,232,000.00
Land in Office Parks
Land in Industrial Parks
Office/Industrial Land - Non-park
Retail/Commercial Land
Residential
$
$
$
$
$
158,700.00
68,100.00
31,600.00
55,000.00
5,000.00
$
$
$
$
$
181,100.00
218,900.00
600,000.00
419,400.00
32,000.00
2012 Global Market Report n www.naiglobal.com 98