Indianapolis Q4 2020 - Industrial Market Report5 Feb 2021
The Indianapolis Industrial Market continues to show solid demand for large distribution space and continues to see solid net absorption numbers. The market is skillfully navigating the balance of new product being constructed at all-time high levels and balancing market demand for State-of-the-Art distribution and manufacturing space in Central Indiana. Continued interests from the large consumer goods and e-commerce based companies considering Central Indiana has been the constant demand drivers for the market strength. The big question regarding the market is how long will its strength continue to absorb these large blocks of space, as the cost of construction continues to rise and the labor supply challenges continued in 2020 for all submarkets and these elements of the market will continue in 2021. As the Covid–19 Pandemic began in March 2020, the impact of this “New Normal” was considered to be a detriment to the market and would result in a slow-down of the market momentum but the deal velocity and new lease transaction closings have remained resilient and demand remained consistent as the sector had another solid quarter and full year of results.