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JUNE 2023 VOLUME35 ISSUE3 CRE MARKETPLACE PAGE 28: BROKERAGE FIRMS
CONSTRUCTION COMPANIES/GENERAL CONTRACTORS ECONOMIC DEVELOPMENT CORPORATIONS LAW FIRMS
Cooling off the red-hot industrial market? Credit those interest-rate hikes By Dan Rafter, Editor
Opus is nearly finished with construction of two industrial buildings totaling 1.1 million square feet in Mount Comfort, Indiana, about 30 minutes from Indianapolis.
T
he Indianapolis industrial market has been booming for years, recording more than 20 million square feet of net absorption during each of the last two years.
But this year? While demand for industrial space remains high in Indianapolis and its surrounding communities, industrial sales have plummeted. At the same time, developers have slowed their plans for adding new industrial space to the market. To no one’s surprise, this stems from higher interest rates.
As the Federal Reserve Board continues to boost interest rates to slow inflation, commercial real estate sales have slowed in all markets and for all asset types. That includes industrial, the asset type that has long been commercial real estate’s top performer. And in Indianapolis? Brokers working this market say that industrial sales won’t tick up again until the Fed stops tweaking its benchmark interest rate.
INDIANAPOLIS (continued on page 26)
PROPERTY MANAGEMENT
The property management challenge: It’s all about managing tenant experiences By Dan Rafter, Editor
The property management business has evolved. There was a time when property management teams focused on making sure the snow was plowed, trash picked up and lights stayed on. Those are still important jobs. But today, property managers are equally focused on doing everything they can to provide tenants with the best possible experience. This means scheduling on-site events such as barbecues, after-hours gatherings and lunch deliveries. It means providing amenities that will inspire workers to return to the office and PROPERTY MANAGEMENT (continued on page 27)