HEARTLAND SNAPSHOT, DECEMBER 2007

Indianapolis Retail Goes Big

Local and regional developers continue to show confidence in the Indianapolis market with millions of square feet of retail in expansive new centers and mixed-use developments.

Simon Property Group is developing a new center called Hamilton Town Center in Noblesville. Pine Tree Commercial has also proposed the development of Lantern Commons in Westfield. Lantern Commons is an $83 million upscale lifestyle center that will also incorporate natural wooded areas and streams. The project will consist of 430,000 square feet of retail on 64 acres located on the northeast corner of U.S. Highway 31 and East 161st Street.  

Additionally, Premier Properties has proposed Venu, a 2.3 million-square-foot mixed-use center located at 86th Street and Keystone Crossing. Lauth is developing Brownsburg Station, 480,000-square-foot retail center located at the interchange of Interstate 74 and Northfield Drive, as well as the 450,000-square-foot Lafayette Pavilion. The development of the new Lucas Oil Stadium, the expansion of the convention center, and an additional 2,500 hotel rooms will only help Indianapolis in strengthening its position as a major convention, sports and shopping destination.

Fitness centers are also making an entrance into the region. Lifestyle Fitness has just signed a lease at 96th & Meridian, and L.A. Fitness has signed on at Fairview Marketplace. Other fitness centers entering the market include Anytime Fitness and 24 Hour Fitness. 

Cabela’s will also be making it’s entrance to the Indianapolis market in the Greenwood area at Interstate 65 and County Line Road. Along with Cabela’s, there will be an additional 74 acres featuring retail, hotel and water park components.

The retail vacancy rate in Indianapolis increased in third-quarter 2007 to 9.9 percent, ending a four quarter overall decrease in the vacancy rate. The rate went from 10.3 percent in fourth-quarter 2006 down to 9.8 percent at the end of the second quarter 2007, before rising back up to 9.9 percent.

— Tim Murray is a senior advisor with Indianapolis-based Resource Commercial Real Estate.

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