VanTrust Kicks Off 2 Indy Industrial Parks
The first two buildings of the 2.5 million square feet of industrial developments are slated for delivery in the first half of 2023.
Start Your Application and Unlock the Power of Choice$5.6M offered by a Bank$1.2M offered by a Bank$2M offered by an Agency$1.4M offered by a Credit UnionClick Here to Get Quotes!VanTrust Real Estate has moved forward with the construction of two industrial parks in suburban Indianapolis: Avon Landings Commerce Park, a 58-acre, three-building development in Avon, and Air 70 Logistics Park, a three-building park in Mt. Comfort. Combined, they will add more than 2.5 million square feet of industrial space to the Indianapolis market.
The first building at Avon Landings broke ground in May, while the first at Air 70 will commence construction later in June.
Avon Landings Commerce Park is located on Ronald Reagan Parkway at the site of a former regional airport. This park will be built out over two phases. The first, which Hemmer Construction broke ground on earlier in May, includes three structures. The 330,240-square-foot Building 1 is expected to deliver early next year, with the other two — a respective 245,000 and 156,000 square feet — planned to commence after delivery. The second phase is planned on an adjacent 60 acres, though no timeline has yet been established.
Air 70 Logistics Park. Image courtesy of VanTrust Real Estate.
Air 70 Logistics Park’s first building, slated for groundbreaking this month, will encompass 800,280 square feet and a delivery date in June 2023. The park’s location is 2 miles from Interstate 70. The other two buildings rounding out the other 1 million square feet will commence afterwards. Pepper Construction is the general contractor.
Both larger developments will benefit from 10-year tax abatements.
Indianapolis’ Strong Industrial Tailwinds
Though many investors overlook the capital of Indiana, its industrial commercial real estate market is booming. The metro’s vacancy — reported at 2.1% for April — is the second lowest among all major U.S. markets, according to Yardi Matrix’s May industrial report. Only the Inland Empire had tighter vacancies, registering at 0.8% during the same period.
In spite of this, rent growth has not yet seriously picked up. April rents were 2.8% higher than a year before, falling far short of the national growth of 4.4% during the same period. However, it’s only a matter of time before the lack of available space drives pricing higher — especially given how attractive the market is from a leasing perspective, as one of the cheapest in the Midwest.
This price hike could be staved off by a massive influx of development activity, however. As of April, Indianapolis' had 26.2 million square feet under construction. For comparison purposes, that’s nearly 10% more than the total industrial square footage underway in the wider Chicago metro. Even so, industrial demand in virtually every U.S. market remains higher than ever before, and it only grows by the day.
Related Questions
What are the benefits of investing in industrial real estate?
Investing in industrial real estate can provide a number of benefits, including potential tax advantages, increased cash flow, and potential appreciation. Industrial real estate can provide investors with a steady stream of income through rental payments, and the depreciation of the property can be used to reduce taxable income. Additionally, industrial real estate can appreciate in value over time, providing investors with a potential return on their investment. Industrial real estate can also provide investors with a hedge against inflation, as the value of the property is likely to increase with inflation.
Industrial real estate can also provide investors with a number of tax advantages. For example, investors can take advantage of accelerated depreciation, which allows them to deduct a larger portion of the cost of the property in the first year of ownership. Additionally, investors can take advantage of the mortgage interest deduction, which allows them to deduct the interest paid on the loan from their taxable income. Finally, investors can also take advantage of the 1031 exchange, which allows them to defer capital gains taxes when they sell a property and reinvest the proceeds into another property.
What are the advantages of VanTrust's industrial parks?
VanTrust Real Estate is a leading real estate development and investment company that specializes in industrial parks. Their industrial parks offer a variety of advantages, such as:
- Flexible design and construction options
- High-quality infrastructure
- Strategic locations
- Competitive financing options
VanTrust's industrial parks are designed to meet the needs of a variety of businesses, from small to large. They offer flexible design and construction options, allowing businesses to customize their space to meet their specific needs. Additionally, VanTrust's industrial parks feature high-quality infrastructure, such as roads, utilities, and other amenities. Their parks are strategically located in areas with access to major transportation routes, making them ideal for businesses that need to move goods quickly and efficiently.
VanTrust also offers competitive financing options for businesses looking to invest in their industrial parks. They offer a variety of loan products, including traditional bank loans, SBA loans, and other financing options. For more information on VanTrust's financing options, please visit their website.
What types of financing options are available for industrial real estate investments?
There are many types of financing options available for industrial real estate investments. These include loans for manufacturing properties, warehouses, and flex properties (office-industrial hybrids). Loan amounts can range from $1,000,000 and up. To learn more, you can speak with a commercial mortgage banker or contact [email protected].
What are the risks associated with investing in industrial real estate?
Investing in industrial real estate carries the same risks as investing in any other type of commercial real estate. These risks include tenant default, longer lease terms, and slower leasing velocity. Additionally, industrial real estate investments may require significant value-add opportunities to earn a strong return on investment. This is particularly true in markets where there’s limited land available for development and soaring demand.
For more information, please see What to Know Before Making Your 1st Industrial Property Investment and Commercial vs. Residential Real Estate: A Comprehensive Guide.
What are the tax implications of investing in industrial real estate?
Investing in industrial real estate can have a variety of tax implications, depending on the type of investment and the structure of the investment. Generally, industrial real estate investments are subject to income taxes, capital gains taxes, and depreciation recapture taxes. Income taxes are paid on rental income, capital gains taxes are paid on the sale of the property, and depreciation recapture taxes are paid on the difference between the sale price and the depreciated value of the property.
It is important to work with a qualified tax professional to understand the specific tax implications of investing in industrial real estate. A tax professional can help you understand the tax implications of different types of investments, as well as the best strategies for reducing your tax burden. Additionally, they can help you understand the potential changes to tax laws in 2022 and beyond.
What are the current trends in industrial real estate investments?
Industrial real estate has been the rock star of the commercial real estate realm for several years, and the pandemic served as rocket fuel for the sector, driving it where many had anticipated it would go — just in half the time. With the unparalleled rise of e-commerce and the ever-greater role logistics providers play in our lives, demand for modern industrial space has hit an all-time, sustained high.
According to a second-quarter report from JLL, leasing activity for logistics, distribution, and third-party logistics continue to fire on all cylinders. Manufacturing is also seeing a resurgence, largely driven by the increase in demand for electric vehicles. At the end of June, there was 77.2 million square feet of manufacturing space underway nationwide, with a staggering 58% directly related to electric vehicle parts or assembly operations.
The top five markets for industrial investment across the U.S. are Inland Empire, Los Angeles, Savannah, Dallas-Fort Worth, and Chicago. You can find more information on these markets in this article.
If you're looking at acquiring or refinancing an asset, you can get a free quote by clicking the button in the menu at industrialproperty.loan.