By Jake Sturman
Senior Vice President
Jones Lang LaSalle
As a follow up to the IBJ article from December depicting Indiana as the bright-shining light in bulk speculative development, our JLL Industrial team is also pleased to see the build-to-suit market here returning in a big way.
A 545,000-square-foot distribution center now being built for the department store Gordman’s in Monrovia is the largest build-to-suit development in two years. And JLL Research is also tracking another 2.3 million SF of new build-to-suit development deals here.
There has been a great deal of activity among tenants during the first quarter of 2013 since tenants are unwilling to wait on build-to-suits. Just 622,000 of the 2.5 million SF of potential deliveries will be absorbed in the first half of 2013.
If all of the build-to-suits sign leases and 60 to 75% of the speculative developments are leased, it will equate to more than 3.5 million SF of new deals.
In short, 2013 looks to be a banner year!