Retail Construction Report
© Marcus & Millichap 2008
Research Associate, Research Services
Second Quarter 2008
Sources: Marcus & Millichap Research Services, Reis, TWR, US Census BureauThe information contained herein was obtained from sources deemed reliable. Every effort was made to obtain complete and accurate information; however, no representation, warranty or guarantee to the accuracy, express or implied, is made.
Retail supply growth in the Indianapolis marketwill be robust in 2008, with 2.7 million square feetforecast to be completed this year, a 55 percentincrease from 2007. The majority of deliveriesscheduled for 2008, came online during the first halfof the year.Unlike other metros in the Midwest, Indianapolishas been relatively unaffected by the downturn inthe residential market due to the metro’s highlyaffordable housing. As such, residents in the areahave more disposable income for retail goods andservices. Supply will likely exceed demand in 2008,as builders are slated to add 3 percent to area stockthis year. The increase in deliveries is expected tocreate an uptick in vacancy and may curtail revenuegrowth.The largest project under way is Simon PropertyGroup’s final two phases of the 950,000-square footHamilton Town Center. This open-air mall isscheduled to be complete in the second quarter andwill include national-credit tenants such as Dick’sSporting Goods, Bed Bath & Beyond, as well as a 16-screen cinema and IMAX theater.
Projects Sq. Ft.Est. 2Q 08 Completions
Est. 1H 08 Completions
Est. 2H 08 Completions
Est. 08 Completions
Construction HighlightsMarket Facts
Median HH Income
Avg. Asking Rent/Sq. Ft.*
* Year-end 2008 Forecast
2008 Estimated Completions Planned Retail Construction