Indianapolis
Total Stock (million sq. ft.)
273.9
Vacancy Rate
4.5%
Availability Rate
6.1%
NNN Lease Rate
$4.34
Net Absorption (million sq. ft.)
3.3
273.9
Vacancy Rate
4.5%
Availability Rate
6.1%
NNN Lease Rate
$4.34
Net Absorption (million sq. ft.)
3.3
Metro Area Population
2.0 million
Unemployment Rate
3.4%
Annual Salary - Warehouse
$26,915
% of Pop - Associate Degree and Below
65.9%
% of Pop - Bachelor's Degree and Above
34.0%
2.0 million
Unemployment Rate
3.4%
Annual Salary - Warehouse
$26,915
% of Pop - Associate Degree and Below
65.9%
% of Pop - Bachelor's Degree and Above
34.0%
Airport
Indianapolis International Airport
Total Cargo (millions of U.S. tons)
1.14
Seaport
N/A
TEU Volume - 2017 (millions)
N/A
Major Highways
I-65, I-69, I-70, I-74
Number of Intermodal Rail Hubs
2
Number of Class I Rail Lines
2
What is the term of a typical lease?
5 years
How is the rent quoted?
NNN annual
What is the tenant's option for termination or break?
Typically, the tenant does not have the right to terminate the lease.
Does the tenant have the option to renew? What is the length of the typical option?
Yes, typically for a term that matches the original term. Often 5 years.
How is the rent determined at renewal?
Typically, rent is determined by market rent at renewal, however not less than expiration rate.
What is the typical rent-free period, if any?
1 month free on a 5-year lease.
What is the typical rent escalation?
2%-3%
Does the tenant have the right to sublet?
Yes
5 years
How is the rent quoted?
NNN annual
What is the tenant's option for termination or break?
Typically, the tenant does not have the right to terminate the lease.
Does the tenant have the option to renew? What is the length of the typical option?
Yes, typically for a term that matches the original term. Often 5 years.
How is the rent determined at renewal?
Typically, rent is determined by market rent at renewal, however not less than expiration rate.
What is the typical rent-free period, if any?
1 month free on a 5-year lease.
What is the typical rent escalation?
2%-3%
Does the tenant have the right to sublet?
Yes
What is the unit of measurement of a typical lease?
Per sq. ft. per year
Does the leasable area include the common area?
Yes
Per sq. ft. per year
Does the leasable area include the common area?
Yes
What is the average rent for a warehouse greater than 50K sq. ft.?
$3.89 per sq. ft. per year
What is the average rent for a manufacturing facility greater than 50K sq. ft.?
$5.09 per sq. ft. per year
Is there a rent review during the lease?
No
What are the average service charges (OPEX)?
$0.45-$1.30 per sq. ft. per year
Who is responsible for the service charges?
Tenant
What are the average taxes paid on the lease?
$0.60-$1.00 per sq. ft. per year range; typically, the average is around $0.80 per sq. ft.
Who is responsible for the property taxes?
Tenant (Note: Landlord is typically directly responsible, but the tenant pays as either part of rent in the case of a modified gross lease or as a direct pass-through from the owner to tenant).
Who is responsible for the utilities?
Tenant (Note: Landlord pays a small portion of utilities for things like exterior lighting, which is included in CAM charges, but tenant is responsible for gas, electric and phone services).
Who is responsible for the fit-out costs, if any?
Tenant (Note: This is negotiable but typically the tenant provides the landlord with a list of requirements that ultimately are included in the rent).
What is the typical security deposit?
1 month rent
How is car/truck parking paid?
Usually included in rent
Any other occupancy costs?
Insurance (on the building itself), CAM and property management fees.
$3.89 per sq. ft. per year
What is the average rent for a manufacturing facility greater than 50K sq. ft.?
$5.09 per sq. ft. per year
Is there a rent review during the lease?
No
What are the average service charges (OPEX)?
$0.45-$1.30 per sq. ft. per year
Who is responsible for the service charges?
Tenant
What are the average taxes paid on the lease?
$0.60-$1.00 per sq. ft. per year range; typically, the average is around $0.80 per sq. ft.
Who is responsible for the property taxes?
Tenant (Note: Landlord is typically directly responsible, but the tenant pays as either part of rent in the case of a modified gross lease or as a direct pass-through from the owner to tenant).
Who is responsible for the utilities?
Tenant (Note: Landlord pays a small portion of utilities for things like exterior lighting, which is included in CAM charges, but tenant is responsible for gas, electric and phone services).
Who is responsible for the fit-out costs, if any?
Tenant (Note: This is negotiable but typically the tenant provides the landlord with a list of requirements that ultimately are included in the rent).
What is the typical security deposit?
1 month rent
How is car/truck parking paid?
Usually included in rent
Any other occupancy costs?
Insurance (on the building itself), CAM and property management fees.
What are typical agency fees? Who pays them?
4% for tenant rep agent, 2% for landlord agent. Paid by landlord.
Who is responsible for legal fees?
Each party is responsible for their own legal fees.
Any other transaction costs?
N/A
4% for tenant rep agent, 2% for landlord agent. Paid by landlord.
Who is responsible for legal fees?
Each party is responsible for their own legal fees.
Any other transaction costs?
N/A
What is the typical land tenure?
4 to 7 years after development with utilities and infrastructure for parcels of 30 acres up to 400-acre industrial developments.
What is the terminology of the purchase agreement?
Purchase Agreement
What is the average cost?
$35-$45 per sq. ft. Manufacturing user buildings are rare but would command a 10%-15% premium if upgrades are necessary for the buyer to occupy.
What is the agency fee and who pays?
6% sales fee paid by seller/ typically split 3% to listing broker and 3% to procuring buyer broker.
What is the typical LTV?
75%-80%
What is the average borrowing rate?
4.85%-5%
What is the mode of payment?
20% cash at closing with 80% loan for user buyer buildings.
What are the average transaction (closing) costs?
Sales fees are typically 6% that are paid by the seller. Closing costs will be approximately 1.5% to 2% paid by purchaser/buyer for title commitment, ALTA Land survey, environmental reports, etc.
4 to 7 years after development with utilities and infrastructure for parcels of 30 acres up to 400-acre industrial developments.
What is the terminology of the purchase agreement?
Purchase Agreement
What is the average cost?
$35-$45 per sq. ft. Manufacturing user buildings are rare but would command a 10%-15% premium if upgrades are necessary for the buyer to occupy.
What is the agency fee and who pays?
6% sales fee paid by seller/ typically split 3% to listing broker and 3% to procuring buyer broker.
What is the typical LTV?
75%-80%
What is the average borrowing rate?
4.85%-5%
What is the mode of payment?
20% cash at closing with 80% loan for user buyer buildings.
What are the average transaction (closing) costs?
Sales fees are typically 6% that are paid by the seller. Closing costs will be approximately 1.5% to 2% paid by purchaser/buyer for title commitment, ALTA Land survey, environmental reports, etc.
What is the average clear ceiling height?
36’
Average number of dock doors?
1 / 10,000 sq. ft.
Typical column spacing?
50' x 50'
Average parking ratio?
0.6 / 1,000 sq. ft.
Sprinkler system?
ESFR
What is the typical power supply?
2,000 amps, 480-3 phase
36’
Average number of dock doors?
1 / 10,000 sq. ft.
Typical column spacing?
50' x 50'
Average parking ratio?
0.6 / 1,000 sq. ft.
Sprinkler system?
ESFR
What is the typical power supply?
2,000 amps, 480-3 phase
CBRE Americas Industrial & Logistics Occupier Guide