MUNSTER, Ind. (AP) - Northwest Indiana isn’t keeping up with metro areas such as Chicago and Indianapolis when it comes to building large industrial spaces that tenant businesses can move into on short notice, according to commercial real estate experts.
About 7 million square feet was under construction in the last three months of 2014 in the Chicago region, compared with 3 million square feet in Indianapolis last year and none in northwest Indiana, a report from the firm NAI Hiffman determined.
The lack of industrial space built on speculation makes developers wary to take a financial risk by bringing such a project to the area, Kelly Disser, executive vice president for industrial services at NAI Hiffman, told The (Munster) Times (https://bit.ly/1FoN1iS ).
When a building is built on speculation, it makes the site “move-in-ready,” allowing potential tenants to begin operations almost immediately.
“When they need space, they need it now,” Disser said of companies looking for new space. “And if the building doesn’t exist when they need it, they are forced to go somewhere else.”
But developers like Disser and local officials hope the industrial space situation in northwest Indiana improves soon.
This month, Becknell Industrial is scheduled to begin construction in Hobart on a 163,000-square-foot speculative building, which will become the only sizeable industrial building of its kind in the region.
And other developers currently are pursuing projects in the region. Several sites in Lake and Porter counties are being prepped to host both speculation buildings and build-to-suit buildings, which are built with a tenant already lined up.
“We are a subset of the Chicago market, and there are a lot of advantages in being located here,” said Rex Richards, CEO of Valparaiso Economic Development Corp. “When you look at the overall cost of doing business, it’s cheaper here and that’s attractive to companies.”
His company is eyeing several sites, including a 100-acre plot near Interstate 49 and another on the city’s southeast side with service available from two freight railroads.
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Information from: The Times, https://www.thetimesonline.com
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