Here’s the good news from Cassidy Turley‘s third-quarter look at the industrial market in Indianapolis: For the first time since the end of the recession, every industrial segment in the Indianapolis market posted occupancy gains.
That helps explain why the industrial vacancy rate in this key Midwest market dropped to 4.4 percent in the third quarter while net absorption came in at a healthy 1.98 million square feet for the first nine months of the year.
Cassidy Turley says that the outlook for industrial remains strong, with busy construction and auto industries leading the way to recovery. Because of this, Cassidy Turley experts expect multi-tenant vacancy rates to come in lower than the averages in both the Midwest and United States.
Of course, there are some warning signs in the report, too. According to Cassidy Turley, the fourth quarter might prove a bit “choppy” for the industrial segment in Indianapolis. That’s because, as the report says, “businesses must balance courage with caution” when looking at the federal budget fight, debt-ceiling squabbles and anxiety over the rollout of the Affordable Care Act, better known as Obamacare.
Still, the segment is healthy. Cassidy Turley says that asking rents for strong warehouse products should rise by 1.6 percent for all of 2013, with asking rents rising by 2.5 percent by 2015.
