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Pace of Demand Remains Strong for Indy’s New Industrial Builds
While Chicago is the leading Midwest hub for industrial, by no means is it the region’s only center for tenant demand. Avison Young cites Indianapolis as an industrial powerhouse, especially in terms of development.
The firm reports that nearly 7.4 million square feet was added over the 12 months that ended March 31, with more than 5.2 million square feet in the pipeline. “The demand for modern distribution space continues at a strong pace, as Indianapolis has become a central hub for e-commerce and other distribution activity,” said Sean McHale, an Avison Young principal in Indianapolis.
Elsewhere in the region, Cleveland’s overall industrial vacancy tightened to 3.9% in the first quarter. “Existing product is scarce, leading to a flurry of speculative development and build-to-suit projects,” according to Avison Young. And the resurgence of auto manufacturing in Detroit means a requirement for “lots of new industrial space.”
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