CBRE has arranged the sale of Fishback 4, a 604,000-square-foot speculative industrial building within Fishback Creek Business Park in Whitestown, Indiana, in the Indianapolis market.
Terry Busch, a senior vice president, and Jared Scaringe, a vice president, in CBRE’s Indianapolis office represented the seller, INDHLAND, LLC in the transaction. The property was purchased by Exeter. A sale price was not disclosed.
The sale represents the latest in a flurry of activity within Fishback Creek Business Park. Fishback 1, now known as Crossroads Logistics Center, is a 1,016,244-square-foot speculative building that has completed construction and is available for lease. Fishback 2 is a 410,424-square-foot building that was purchased and is occupied by a global parcel and express mail logistics company, and Fishback 3 is a 455,430-square-foot build-to-suit for a global beverage distributor.
“The rate of delivery of new space in this market has caught the eye of capital groups from coast to coast,” said Busch. “The industrial sector is seeing a continued increase in demand to meet consumer needs and developments like Fishback Creek Business Park are keeping Indianapolis on short lists for national distribution chains.”
According to a CBRE report, As the U.S. economy restarts, adjustments to business supply chains will increase the demand for warehouse space. The downward trend in inventory-to-sales ratios since the early 1990s could reverse as manufacturers, wholesalers and retailers store materials and products closer to manufacturing centers and consumers. Additionally, businesses may create more domestic supply chains as they re-shore or near-shore production.
According to CBRE Research, a 5 percent increase in business inventories requires an additional 400 million to 500 million square feet of warehouse space
The rising use of e-commerce is expected to create additional warehouse demand as consumers continue social distancing even after states and cities reopen their economies. Established e-commerce hubs at major transportation centers should see strong fundamentals as many occupiers recalibrate their supply chains and build automation and efficiencies into their distribution networks.
With the recent announcement of a 2.2-million-square-foot distribution facility in Hancock County, the industrial construction pipeline in Indianapolis will exceed 14 million square feet, a figure that is among the top six in the United States.