Midwest Real Estate News April 2014 : Page 1

MINNESOTA | MISSOURI | NEBRASKA | OHIO | TENNESSEE | WISCONSIN aPrIl 2014 VOLUME 29 ISSUE 08 WWW .REJOURNALS.COM Directories begin on page 37: Green Sustainable, Healthcare mObs, multi-Family Finance, top brokerage Firms, top Developers THE DAKOTAS | ILLINOIS | INDIANA | IOWA | KANSAS | KENTUCKY | MICHIGAN the value of stability: Steady recovery continues in Omaha market by Dan rafter, editor Feature: InDIanaPOlIS Spec industrial momentum not slowing in Indianapolis by Dan rafter, editor Soon. That’s when the brokers working in the Indianapolis market expect a flow of industrial deals to hit their city and its suburbs. But Michael Weishaar, managing director and principal with the Indianapolis office of Cassidy Turley, thinks that “soon” is already here. “Many of the brokers are saying that there are a lot of people looking at and walking through space, but that not a lot of deals are getting cut quite yet,” Weishaar said. “I agreed with that, up until about two or three weeks ago. Now I see deals getting done in the industrial market. We’ve been able to get some nice-sized deals close to signed up and a couple of others actually signed up. We’ve been seeing that momentum continue throughout this year.” Weishaar is far from alone in seeing this. The industrial market in Indianapolis has been a busy one, with a large amount of speculative construc-tion. And today, the interest from investors is turning more rapidly into actual closed deals. The best news? It’s a trend that doesn’t look ready to slow. “The strength of the industrial market here is growing,” said Bob Smietana, chief executive offi-cer of HSA Commercial Real Estate. “We think the industrial market in Indianapolis is strong. How deep the market is, only time will tell. But we think we’ve hit the market at the right time and the right place.” t renton Magid, principal and founder of Omaha’s World Group Com-mercial Real Estate, describes the Omaha commercial real estate market as a stable one. And he’s far from alone. The brokers doing business in Nebraska’s larg-est city say that Omaha weathered the Great Recession so well mostly because developers never overbuilt here. A diverse economy and growing downtown have helped, too. Today, Omaha is enjoying a solid recovery. The city’s commercial real estate business might not be boom-ing. But it is growing at a steady clip. In other words, Omaha still lives up to its reputation as one of the more stable markets in the country. “Developers never go crazy in this market,” Magid said. “Omaha is always on a lot of the best-to-re-cover from the recession lists. We had a period where deals came at a slower rate. But we never really had as severe a downturn as many other markets had.” Tim Kerrigan, vice president for of-fice, land and investment with Inves-tors Realty, says that there are many reasons why Omaha has recovered so well from the recession. There’s that busy downtown, for instance. TD Ameritrade Park, a baseball park that serves as the home of the College World Series, is the anchor for the downtown, draw-ing crowds every time it holds an event. Creighton University is nearby, too. The school brings students, of course, but it’s also brought plenty of new multi-family units to the down-town area. Mixed-use developments have helped Omaha’s economy, and its commercial real estate market, too. Aksarben Village, an entertainment and shopping community is home to plenty of shops, restaurants, bars and green space. It remains a popular destination spot for Omaha residents. Sterling Ridge, too, has generat-ed excitement here. This 150-acre mixed-use development on the site of the former Ironwood Golf Course will provide multi-family housing, single-family homes, retail spaces and churches. “We have a steady economy in Omaha. And we have a good diversity of businesses,” Kerrigan said. “Of Stable numberS The numbers paint the picture of an Indianap-olis industrial market that is remarkably stable. In the first quarter of 2014, the overall industrial vacancy rate for the Indianapolis market stood at 5.1 percent, according to research from Cassidy Turley. Certain submarkets saw an even lower rate. The downtown market had an industrial vacancy rate of just 1.8 percent in the first quarter, while OMAHA FEATURE (continued on page 22) INDIANAPOLIS FEATURE (continued on page 25)

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