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.
Earlier this year, I was fortunate to get to work on a BizVoice story about brewing in Indiana. As Indiana’s breweries continue to battle the "big guys" for market share, it appears the "drink local" movement has the momentum. Inside INdiana Business’ Gerry Dick spoke with Brewers of Indiana Guild President Ted Miller about the state of the industry, pointing about that the breweries are growing all over the state now. Watch the interview:
Indiana’s emerging craft beer industry is showing no signs of slowing down. The Brewers of Indiana Guild says there are 49 breweries in the state with another 12 on tap, boosted by an increasing trend among consumers to buy local. The state has been behind other areas of the country in jumping into the craft beer craze, but the guild says it now ranks 25th in breweries per capita. Guild President Ted Miller discusses the state of the industry during an appearance on Inside INdiana Business Television.
Our friend Gerry Dick at Inside INdiana Business interviewedWilliam Kassebaum of Indianapolis-based Stellarwind BioEnergy about the company’s work to develop oil from algae. See the interview on the IIB web site.
Additionally, I wrote a brief article on Stellarwind’s efforts last year in BizVoice magazine.
Hopefully, exciting things are afoot for this innovative company.
Chamber President Kevin Brinegar recently appeared on Inside INdiana Business discussing a potential delay in the unemployment insurance fund tax increase.
The President of the Indiana Chamber of Commerce is "cautiously optimistic" a deal will be reached to delay a tax increase on businesses to support the state’s bankrupt unemployment insurance fund. Kevin Brinegar believes a two-year delay in implementation is the most likely scenario. He says there are still some "differing views" that need to be worked out, including issues such as higher benefit levels, automatic benefit increases and paid family and medical leave…
Brinegar says the unemployment insurance system is not designed to fund family and medical leave.
He says a two year delay would provide time to see what Congress will do to deal with the issue because several states are dealing with dwindling unemployment insurance funds, which is part of a national program.
Brinegar also says the chamber is "very disappointed" a bill allowing employees to keep guns locked in their vehicles parked on company property has gone to the governor’s desk.
He says the chamber is also monitoring a tax proposal that would give companies more time to file amended personal property tax returns on their business machinery and equipment.
Yes, our current health care system is broken. No, a multi-billion dollar annual tax on medical device companies should not be part of any so-called solution. As our country seeks to emerge from the recession, the last thing we should be doing is discouraging entrepreneurs and businesses that are providing all-important technologies and jobs. Continued innovation, not intervention, is what is needed.
Steve Ferguson, a longtime Indiana business and community leader, describes why the tax is so bad for our state. Ferguson, the 2010 Indiana Chamber board chairman and chairman of Cook Group in Bloomington, talked with Gerry Dick of Inside INdiana Business.
Like him or not, Frank Luntz is known nationally by many in the political arena as a top pollster. One of his most recent polls, however, focuses instead on the basketball arena, and shows very encouraging results for the Indiana Pacers. Luntz recently spoke to Gerry Dick of Inside INdiana Business about the rebuilding of the team’s image, stating that 90% of fans polled believe the team has kept its promise to "clean up its act." He also offered that he’d never seen a turnaround of that magnitude in professional sports before.
Our friend Gerry Dick at Inside INdiana Business recently interviewed Brian Lamb, Hoosier native and founder of C-SPAN, about the state of media today. He offers:
It’s painful for me personally to watch the newspapers in such trouble and some of the broadcasters and the radio people, but I love what’s going on. I love the fact that any person in this country that wants to create something in this medium can do it. They can start a web site for almost nothing; their voices can be heard. I think it’s unbelievably important and I’m for it.
Cam Carter, the Chamber’s VP of small business and economic development, joined Gerry Dick (and Paul Mannweiler of Bose Public Affairs Group) on the set of Inside Indiana Business this weekend to discuss what didn’t happen — and what needs to happen — in the Indiana legislature. Topics discussed include the budget, the "onerous" unemployment trust fund bill, and more.
To those of you reading this blog, our BizVoice magazine and numerous other written communication efforts, thank you. To those who also want to see the latest from the Indiana Chamber, you can click on the videos tab at the bottom of each page on our web site. What will you find?
Commentaries from Chamber President Kevin Brinegar
BizVoice magazine segments featuring stories from our current issue
Profiles of 2008 Annual Award and Volunteer of the Year winners
Our special policy outreaches on local government reform (featuring former Gov. Joe Kernan) and the Letters to Our Leaders campaign
In addition, Brinegar and other Chamber issue experts appear weekly on the Inside INdiana Business with Gerry Dick television program during the legislative session. Inside the Statehouse segments are also available online.
In the interest of full disclosure, the Indiana Chamber has been a partner with Inside INdiana Business (IIB) throughout its eight-year history (even though we don’t always agree with their coverage). But few would argue with this statement — Gerry Dick and his team do a great job of dispensing the state’s business news through a variety of mediums.
Indianapolis public televsion station WFYI has also been a long-term partner of IIB. The WFYI move two blocks north on Meridian Street (to the former Indiana Gas building) is also big news for IIB. The weekly TV show has a new studio to call home and the IIB team will be moving full-time to the fourth floor of the same building.
Gerry and crew are excited about the opportunities for more original web site and other content, along with coming closer to the heart of the city. We say an early welcome to the near downtown and keep up the great work in telling the state’s business stories.