By Jake Sturman
Executive Vice President
Jones Lang LaSalle
Indianapolis continues to lead the Midwest in the speculative building and build-to-suit markets.
Our Indianapolis Industrial team is currently tracking 2.8 million square feet of new speculative deliveries of six different buildings, all within the Southwest submarket. The majority of these deliveries are between 220,000 square feet and 476,000 square feet, with one 770,000 square foot speculative building.
There is excellent activity on these spaces and the market has an additional 6.1 million square feet of potential speculative construction starts being contemplated by a handful of investors for 2014.
JLL believes about half of the potential speculative construction starts will occur by Q3 2014, with the majority of these being spaces above 500,000 square feet. The Indianapolis Industrial market velocity continues to stay extremely strong with approximately 15 million square feet of current deals in the market and a positive market forecast for net absorption.