MIDDLE MARKET HIGHLIGHT, OCTOBER 2006

Evansville
Dan Marcec

The Evansville region “has been as hot as the weather this summer,” according to James Holderread, acting executive director for the Evansville Regional Economic Development Corporation. With all the activity flourishing throughout the commercial real estate industry, his claim is difficult to deny. Several major companies populate the area, balancing the region’s economy and creating demand for development. Some of these businesses, which include Toyota, Whirlpool, Alcoa, Bristol-Myers Squibb/Mead Johnson Nutritionals, T.J. Maxx, American General Financial Services, Koch Enterprises, GE Plastics, Berry Plastics, Vectren Corporation — among others — are established throughout the Evansville area. In addition, Tenneco Automotive opened a plant this past spring in order to manufacture exhaust systems for Toyota, and United Components, Inc. recently located its corporate headquarters in Evansville.

Drawing from the infrastructure supported by these active companies and a healthy economy, commercial development is very healthy in Evansville, as evidenced by the recent projects in the area. Woodward Commercial Realty has developed several office and industrial parks, and Regency Properties has developed several commercial and office projects in the area.

Throughout Evansville, Shoe Carnival has demonstrated some of the most significant activity, constructing a 60,000-square-foot corporate headquarters facility as well as a 410,000-square-foot distribution center. American General Financial Services is adding a $35 million office building to its existing corporate headquarters complex, and two ethanol plant developments, representing investments of $400 million and $200 million, are significant projects located in Posey County. Other significant projects include the $82 million Deaconess Gateway Hospital, a $40 million boutique hotel and entertainment center at Casino Aztar, and the Mansanto Seed research facility.

A unique development story involves a small distribution center for Grosh Scenic Rentals, a Hollywood, California-based company. “Grosh rents scenery to schools and theaters nationwide, and it was negatively impacted by fuel surcharges added to shipping bills,” Holderread explains. “They worked with FedEx to find the location with the best ground-time transit to most places in the United States, and [Grosh] was told it needed to be in Evansville, Indiana.”

A majority of development is taking place in several areas. The ethanol plants and other large-scale developments are focusing on Posey County because there are large sites available and the Port of Indiana – Mt. Vernon has river access that these large projects need. Other developments are locating primarily in Vanderburgh County because of the availability of land in industrial parks. 

“We are interested in attracting advanced manufacturing, high technology, corporate and regional headquarters, and logistics and distribution companies,” Holderread says. When asked why these types of industries will flourish in the region, he replies, “The world is flat, and Evansville is centrally located close to the median center of the U.S. Population, and the region is well connected by rail, highway, air and river.”

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