More than 1,000 real estate and economic development pros from across the country were on hand at Clowes Memorial Hall (at Butler University) last Thursday to hear about the market's performance in 2012. Governor-elect Mike Pence was also on-hand, and did an on-stage interview with our friend Gerry Dick.
The State of Real Estate® 2013 covered the industrial, office, retail and capital markets – as well as an overall economic outlook – providing in-depth market analyses and forecasts for attendees. Four days prior to taking office, Indiana Governor-elect Mike Pence was interviewed onstage by the host and creator of Inside INdiana Business, Gerry Dick, regarding various topics affecting Indiana and his future plans for the state.
Cassidy Turley Regional Managing Principal, Jeff Henry said, “This year will be a significant one politically as well as economically, as the nation looks to Washington, DC, to provide the clarity needed to move forward with confidence. Despite slowing growth abroad and lingering public policy uncertainties at home, 2012 was characterized by improving business conditions, offering hope that growth will continue in the year ahead. Indiana’s commercial property markets have proved to be remarkably resilient as every segment of commercial real estate demonstrated strengthening fundamentals over the balance of 2012.”
In conjunction with the show, Cassidy Turley published a 2013 Annual Market Report for Indianapolis, available for viewing at www.cassidyturleyreport.com. Highlights of the report include:
- Industrial: Tremendous resiliency with surprisingly robust fundamentals; significant demand driving considerable speculative development and more than 4.3 million square feet (SF) of absorption in the Indianapolis market in 2012.
- Office: The first half of 2012 showed the best consecutive six-month period for the Central Indiana multi-tenant office market since the recession; more than 300,000 SF were absorbed through midyear. In June, ground was broken on the first completely speculative Indianapolis-area office development since 2008 at 8335 Keystone Crossing. Vacancy rates and office rents fell flat the second half of the year with increasing economic and political uncertainty.
- Retail: Despite a somewhat rocky road throughout 2012, the Indianapolis retail market continues to improve and vacancy rates for all types of Indianapolis retail track lower than the national average. With the best growth of the year posted in the final quarter, net absorption for 2012 finished at 508,380 SF. Retail continues to show a bifurcated market with luxury and value-oriented retailers growing the fastest.
- Capital Markets: Continued economic turbulence in Europe accompanied by pervasive public policy uncertainty in the U.S. dampened the lending environment and hampered the pace of investment sales again in 2012. However, strengthening fundamentals in the economy as well as property markets signal that opportunity lies ahead. On the lending side, there was improvement in financing terms as well as availability, which drove investment sales higher in Indianapolis.