Even more impressive is that the developers of the facilities have enough confidence in the market that they are building them on a speculative basis with no signed leases yet.
“I think it’s indicative of how strong our industrial market has become,” said Jason Speckman, an industrial broker at the local Colliers International office. “There’s a good chance we’re going to see historically high absorption numbers this year.”
Through August, about 7 million square feet of new industrial space had become occupied—aka “absorbed,” in industry parlance—more than twice the amount for all of last year, Speckman said.
In Plainfield, central Indiana’s epicenter of industrial activity, developers Ambrose Property Group, Becknell Industrial and Browning Investments are preparing to break ground on their projects.
…Browning also will be building on Ronald Reagan Parkway, at the southwest corner of it and Stout Heritage Parkway. The site is significant because it’s the last remaining vacant parcel in Airtech Park, the Indianapolis-area’s fourth-largest industrial park.
Browning began building Airtech in 1998 in a joint venture with San Francisco-based Prologis. With 5.3 million square feet of rentable space, it’s fully leased.
“We feel good about [the new building] from a speculative basis,” said Mark Susemichel, Browning’s senior vice president of development. “And the market’s had a significant run. There’s been a tremendous amount of absorption.”
Susemichel declined to provide a cost for the project, saying building features could change once a tenant is signed.
Driving much of the demand for new industrial space in the Indianapolis area are e-commerce companies hungry for additional warehouses to quicken delivery times to consumers.
Browning plans to attract one of those companies with its new building by constructing it with 36-foot-high ceilings, LED lighting and more parking space than typical warehouses, due to the larger number of employees needed to fulfill orders, Susemichel said.
The building should be finished by April.
…The three projects from Ambrose, Becknell and Browning will help Plainfield achieve the milestone of having more than 40 million square feet of industrial space built within its borders.
With the success, however, comes apprehension about the availability of land for future projects, town spokesman Tony Perona said.
“There is some space left,” he said, “but clearly that’s one thing we’re concerned about.”
Olson, Scott. “Three massive industrial projects on tap for Plainfield.” Indianapolis Business Journal, 20 Nov. 2016.