IRR-Indianapolis Mid-Year Viewpoint 2015 Local Market Report - Retail
Continued Improvement - That, in two words, basically describes the Indianapolis retail market. Vacancy rates continue to decrease, rental rates continue to increase, and new construction has been constrained, all factors which have led to continued improving retail market characteristics. Leasing activity is up, particularly in the West (Avon/Brownsburg), North (Carmel/Westfield/Fishers) and South (Greenwood/Southport) submarkets.
The opening of several new craft brewery concepts and the continued development/expansion of the grocery segment have dominated the retail news during the first few months of 2015. Numerous craft breweries, located throughout the market area, have been widely accepted. Notable openings include Yard House in Circle Center Mall (CBD submarket) and Flix Brewhouse (Carmel submarket). Giant Eagle continues its development of a 120,000 SF Market District grocery store and an accompanying GetGo gas station/convenience store in the Bridges development in Carmel. Also, Meijer, Walmart Neighborhood Market, Fresh Thyme Farmers Market, Earth Fare and Aldi have all recently opened new stores. Lastly, in April 2015, Kroger released to the public a 4-year, $464 million plan which entails the construction of new stores, including its largest format (125,000 SF) concept, the expansion and/or renovation of existing stores, and the creation of a job training center. According to Kroger, more than 3,400 jobs will be created when the plan is completed. The Indianapolis retail market is in the recovery stage of its market cycle. This is evidenced by the decreasing vacancy rates, low new construction, increasing rental rates and moderate absorption. Sales activity has also increased due to the market's favorable investment criteria and economic fundamentals.
Download the full version PDF of this Local Market Report below. It includes graphs and tables.
IRR Mid-Year Viewpoint 2015 comprises a National Overview report and 300+ two-page Local Market Reports for all key property types as well as additional resources, including metrics methodology, graphs, and tables; these free reports may be downloaded from IRR’s site here.