Northwest Indiana's Industrial Real Estate Market Thrives, Sets Seven-Year Record High
Northwest Indiana saw a great year for its industrial real estate market in 2015 as it set a new seven-year record high.
Findings from NAI Hiffman's Year-End Market Review and 2016 Forecast, as reported by the Northwest Indiana Times, showed that the year 2015 was by far the best year for the region's industrial real estate market since 2008. Last year, industrial real estate-related projects boomed.
The report showed that industrial construction projects in the region reached at least 1 million square feet in 2015, exceeding the figures recorded in the previous year. New tenants leased out a total of 772,000 square feet of industrial spaces throughout last year, the report showed. This included the newly built Ameriplex, which has a total 300,0000 square feet of leasable space.
The region's vacancy rate, which is another key indicator of real estate vibrancy in a particular area, went down by 5.55 percent. In terms of basis points, it's 100 points lower than last year's figures, the report added. With the vacancy rate plunging, new developments could spur in the region in the near future.
"There are currently only two options for users requiring large blocks of space, which have been completed within the past 20 years. With the declining vacancy rate and increasing absorption, more new speculative projects may be announced in 2016," NAI Hiffman's report showed, as quoted by the Northwest Indiana Times.
The major industrial real estate deal that happened in the Northwest Indiana region so far last year was the purchase of the 574,000-square-foot warehouse, which was a joint venture between DRA Advisors and Venture One Real Estate.
Apart from bullish industrial real estate, Northwest Indiana's housing sector also ended 2015 strong, a separate report from Valpolife showed. Last year, some counties in the region recorded an increase in housing sales. In Porter County, for example, housing sales rose by 9 percent as compared to the previous year.