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Market Report

Indianapolis Industrial

Second Half 2019

Investors Target Spacious Facilities Near Airport as Air Freight Volume Increases

 

Plainfield warehouses continue to draw interest amid FedEx expansion plan. Indianapolis’ central location and access to multiple interstate highways has established the metro as a logistical warehousing hub. More recently, air freight operations at the airport have increased, in large part due to FedEx’s $1.5 billion expansion plan, announced in 2018. As FedEx activity at the airport amplifies, companies who rely on FedEx services are actively seeking out properties nearby. Leasing activity for warehouses in this locale spiked over the past year, specifically in large-scale facilities. Since July 2018, more than a dozen leases have been signed or renewed in Plainfield alone, with an average square footage of 134,000. Of these, the largest move-ins have been from transportation services companies Expeditors and Alan Ritchey Inc., which are moving into properties greater than 250,000 square feet. As the expansion plan takes shape and volume coming through the airport increases over the next few years, the area’s space demand will continue to strengthen, and asking rent prices will grow as available space near the airport becomes limited.

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