Chicago-based HSA Commercial Real Estate closed a 49,977-square-foot industrial lease with Continental, one of the country’s top contract dining and refreshment providers, at Gateway Industrial II, within HSA Commercial’s Gateway Business Park near Indianapolis International Airport.
The deal returns Gateway Industrial II to full occupancy after its previous tenant expanded elsewhere within the business park.
In recent years, a record level of speculative industrial deliveries has put downward pressure on occupancy across the Indianapolis market, with net absorption remaining flat to close out 2023, according to CBRE research. Still, absorption totaled 10.5 million square feet last year, the third-highest annual figure on record.
The lease with Continental underscores HSA Commercial’s ability to accommodate tenants as they grow, according to Smietana. The space’s previous tenant, Peli BioThermal, relocated from 50,000 square feet in Gateway Industrial II last year to 138,328 square feet in a newly constructed building in the park, Gateway Industrial VI. This allowed Peli BioThermal to more than double its space without disruption to its operations.
Based in Troy, Mich., Continental specializes in workplace food and beverage programs, offering services ranging from 24/7 “micro-markets” to full-service cafes. The company, known for its best-in-class logistics and infrastructure, plans to establish a distribution center and office space at Gateway Industrial II, located at 851 Columbia Road in Plainfield, Ind. HSA will oversee the build-out of the office portion while Continental will retrofit the warehouse space, with occupancy slated for June 1.
Built in 2004, Gateway Industrial II features a 28-foot clear height and 50-by-50-foot column spacing with 60-foot bays. In addition to Continental, the 104,400-square-foot facility is occupied by Sky Zone Trampoline Park, In Touch Pharmaceuticals and CertiFit Auto Body Parts.
To date, HSA Commercial has completed seven buildings totaling approximately 1,178,000 square feet at Gateway Business Park. Situated on 55 acres, the master-planned development is conveniently located 1 mile from Indianapolis International Airport, five minutes from Interstates 70 and 465, and just 10 minutes from downtown Indianapolis.
Tom Ferguson of Indianapolis-based Premier Commercial and John R. Boyd of Southfield, Mich.-based Signature Associates represented Continental in the transaction. Terry Busch and Jared Scaringe of CBRE represented ownership.
