The retail scene in Indianapolis continues to see an emphasis on big box development. Of the 21 big box developments in the pipeline at the beginning of 2002, 90 percent have been completed or are near completion, according to Eric Hillenbrand, second vice president of retail sales and leasing at Colliers Turley Martin Tuckers’ Indianapolis office. The Home Depot, Target, Lowe’s, Cosco, Kohl’s, Wal-Mart, Meijer and Menards are some of the retailers that opened new big box locations this year.

Lauth Property Group and Duke Realty Corporation have helped facilitate this type of growth with new developments. Along Southport Road on Indianapolis’ south side, Lauth opened a new center that includes The Home Depot, Kohl’s, Target, Pier 1 Imports and Kittles. Duke Realty Corporation has broken ground on a similar development on State Road 37 in Noblesville. Meijer, T.J. Maxx, Linens ‘n Things, Barnes & Noble, Shoe Carnival and Pier 1 Imports will be the tenants.

Downtown Indianapolis Retail Update During the late 1980s, retailers were vacating downtown Indianapolis, crippling the retail market. But the area didn’t have to wait long for a revival. In 1995, downtown retail was reborn with the opening of Circle Centre, a shopping and entertainment complex. Anchored by Nordstrom and Parisian, the center produced outstanding sales and traffic figures, prompting Old Navy and T.J. Maxx to open nearby. Retail has continued to grow steadily in that area, with 50 new restaurants opening since 1995 and Borders Books & Music opening a location in September 2001. With solid sales secured in the Wholesale district near Circle Centre, the focus shifted to develop other unique and eclectic areas of the downtown. Mass Avenue known as Downtown’s arts and entertainment district, is taking center stage. A recent initiative was created to make Mass Avenue distinguishable from other areas of Indianapolis because of its diversity and emphasis on the arts. The project, the Mass Avenue Commercial Development Plan, is being managed by Indianapolis Downtown, Inc. and Riley Area Development Corporation. Part of the plan included a matching funds facade improvement program to be awarded by the city of Indianapolis and the managers of the Mass Avenue plan. Various commercial building property owners and business operators were awarded $100,000 to use in conjunction with their own funds, which generated $328,000 of total investment along Mass Avenue. More than 20 new businesses have opened since 1998 — from art galleries and specialty shops to restaurants and retail. The latest addition to Mass Avenue was the Scholars Inn restaurant, which opened in August. - Jennifer Hanson, Communications Manager for Indianapolis Downtown, Inc.

Greg Poetz, vice president of leasing for Kite Development, says the company has big box projects scattered throughout the area. Greyhound Commons, in Carmel, has a Lowe’s open and 63,000 square feet of space in the rest of the center. Stony Creek Commons, in Noblesville, also has a Lowe’s open and has signed Chili’s, O’Charley’s, Chick-fil-A and Bob Evans. There is room for three more big boxes. In Westfield, the 135,000-square-foot Cool Creek Commons has booked the Fresh Market and expects a fall 2003 completion date for the project. Kokomo’s Boulevard Crossing, located at intersection of U.S. 31 and Boulevard Street, is a 200,000-square-foot center opening in fall 2003.

Skinner & Broadbent is working on two big box centers, according to Tim Baker, vice president of leasing and sales. One project is a redevelopment and the other is the addition of a second phase. Greenwood Place, located on U.S. 31 at Stop 11 Road, is retenanting 150,000 square feet of space in conjunction with 200,000 square feet of existing retailers, including anchors Burlington Coat Factory and PetsMart. Phase II of River Ridge Commons, located on 96th Street and Grey Road, will be finalized in spring 2003 when 40,000 square feet is added to the present 30,000 square feet of space.

The Linder Company is moving forward on two centers, according to President Gary Linder. The first, Merchants Point, is located at 116th Street and Keystone Avenue and is a 102,000-square-foot center anchored by Borders Books and Music. Construction should be complete at the end of 2003. Harrison Center, the second project, is located at 56th Street and Post Road and contains a 40,000-square-foot building with a few outstanding parcels.

Sandor Development Company is developing a number of Indianapolis big box projects, says Joe Farr, leasing representative and property developer for Sandor. Indianapolis Pavilions, located on 96th Street near Interstate 69 in northeast Indianapolis, will total 550,000 square feet when finished. Menard’s will join the already open Sam’s Club this month. In the southeast, Indianapolis Pavilions South is being developed at the northwest corner of Interstates 74 and 465. Available retail ranges between 1,200 and 200,000 square feet. In Greenwood, Galyan’s Crossing is being developed at the northwest corner of U.S. 31 and Frye Road. An 82,000-square-foot Galyan’s will be complemented by 20,000 square feet of additional retail at the center. Wal-Mart Plaza, on U.S. 31 in Franklin, is being developed on 65 acres. Retail stores, ranging from 1,200 square feet to 170,000 square feet, will be developed on 25 acres of the land.

The area’s most active developers are following the rooftops to the high growth areas to build these big box retail centers. The areas with the most interest and development are Noblesville, Fishers, Carmel and the Michigan Road corridor on the north side; the northeastern corridor of Pendleton Pike to the east; Avon, Brownsburg and Plainfield on the west side; and Southport Road at Interstate 65, Greenwood and Mooresville on the south side.

“SR 37 on the southwest side, SR 135 on the south side and the Michigan Road corridor will all be hot spots due to new housing developments,” Hillenbrand says.

Retailers new to the market this year include Cosco, Coldwater Creek, J. Jill, Chick-fil-A, Carraba’s Italian Grill, Macaroni Grill, Cheeseburger in Paradise and Bone Fish Grill. Potential newcomers include Fresh Market, Home Depot Expo and the Wal-Mart neighborhood grocery concept.

- Chris Thorn


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