Expect an increase in new industrial construction in Northeast Indiana this year. Expect, too, that some of this new construction will be spec, too.
Those are two big takeaways from the 2026 Northeast Indiana Industrial Market Report released earlier this month by The Zacher Company.
According to the report, favorable incentives included in newly passed federal tax laws will lessen the impact of steadily increasing development costs. Thanks to these incentives, developers will still be willing to add new industrial product to the Northeast Indiana region despite higher construction costs, the Zacher Company says.
And when it comes to new spec industrial construction? The Zacher Company predicts that more spec developments will hit the region in 2026, though most of this type of construction will take place in Fort Wayne and Allen County. New spec construction will increasingly target users seeking 100,000 or more square feet, the Zacher Company said.
At least half of the Northeast Indiana region’s vacant spec industrial buildings will be absorbed this year, the Zacher Company predicts. Zacher, though, says that this absorption won’t have a major impact on the region’s industrial vacancy rate because seven of these buildings are 40,000 square feet or less.
The Zacher Company predicts, too, that Northeast Indiana will see more industrial sales in 2026. Owners should be more open to sales this year as lease rates remain flat and sale prices continue to increase in the region.
And what happened in the local industrial market in 2025? The Zacher Company reported that eight industrial spec buildings in Northeast Indiana were absorbed last year. This activity took a total of 762,500 square feet of industrial space off the market.
New construction activity came in at a lower volume than at any point in the last 10 years. The Zacher Company reported, too, that buyers are becoming less price-sensitive in the region when seeking in-demand industrial space. That pushed sale prices to $70 a square foot for second-generation buildings in some cases.
Outdoor storage for trailer parking and materials also became a higher priority for users in the region last year, the Zacher Company reported.
As far as numbers go, the Northeast Indiana market began 2026 with an industrial vacancy rate of 4.75%. The region saw about 2.6 million square feet of new industrial construction last year and 362,000 square feet of positive net absorption.
