MARKET AT A GLANCE
Research
2Q16
(Current Quarter)
1Q16
(Previous Quarter)
1Q15
(Previous Year)
12 Month
Forecast
Total Inventory
(Local Profile)69M SF 69M SF 52M SF
Vacancy Rate 6.4% 5.9% 7.2%
Quarterly Net Absorption 83,365 -200,749 -389,060
Average Lease Rate $3.90 $3.91 $3.80
Under Construction 885,000 SF 120,000 16,440
Completed Construction 0 0 275,000
FORT WAYNE2Q16 INDUSTRIAL MARKET
INDUSTRIAL MARKET KEEPS
UPWARD TRAJECTORY
Northeast Indiana continues its upward trajectory as sale prices and
lease rates increased during the first half of 2016. Key indicators
suggest the industrial market will continue on a strong growth path
that will positively impact the Fort Wayne industrial sector. Availability
of industrial space continues to tighten, and companies looking to
expand are finding fewer acceptable/desirable existing buildings for
sale or lease. In the coming months, look for more build-to-suit
developments to occur as expanding users are unable to fulfill their
requirements with existing buildings. Expect sale prices and lease
rates to continue to increase as landlords and sellers will have
leverage over tenants and buyers.
Economic ConditionsThe U.S. Bureau of Labor Statistics reported an unemployment rate of
4.0% for Fort Wayne in May 2016. According to the CES survey of
employers, there were 200 jobs added in May for a total of 222,400 jobs.
The CPS survey of households showed 208,162 employed persons for
the month. Overall, the United States gained 38,000 jobs since last
month and has a 4.7% unemployment rate.
69M SF 6.4% 83,365
SF$3.90
Total
Inventory
Vacancy
Rate
Net
Absorption
Average
Lease Rate
Under
Construction
Unemployment
Rate
4.0%900K
SF
2%
4%
6%
8%
10%
$1
$2
$3
$4
$5
2Q10 2Q11 2Q12 2Q13 2Q14 2Q15 2Q16
Average Lease Rate (Price/SF) Vacancy (%)
MARKET PERFORMANCE
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New Fort Wayne Office!We celebrate the opening of our new
office located in the beautifully appointed
1st Source Bank building in downtown
Fort Wayne, Indiana. Managing Director,
Bill Drinkall, and brokers Zach Meyer
and Gary Buschman, will oversee and
actively market the strategic expansion
of our firm’s territory into the Greater
Fort Wayne area and the outlying
northeast Indiana counties.
Newmark Grubb Cressy & Everett
200 E. Main Street, Suite 540
Fort Wayne, Indiana
AVERAGE LEASE RATE & VACANCY
2
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GE To Redevelop 1.2M Square-Foot Fort Wayne Campus
General Electric (GE), in collaboration with Greater Fort Wayne (GFW)
Inc., is searching for a developer and/or investor to redevelop the 1.2
million-square-foot GE Broadway Street campus. This campus has
been unoccupied since January 2015. Proposed development projects
like the $100 million riverfront, $30 million redevelopment of The Landing,
and $85 million downtown arena have played a role in GE’s choice to
begin the potential redevelopment process.
Fastener Manufacturer Invests $12M To Double Capacity
Cold Heading Co., a Michigan-based fastener manufacturer, announced.
plans to invest $12 million to double the size of its Fremont facilities, and
add up to 30 jobs by 2019. Plans include the construction of a 148,000
square-foot facility, allowing for additional production capacity.
Automotive Manufacturer Breaks Ground On $33.5M Facility
Michigan-based Continental Structural Plastics Inc. is expanding in
Huntington. The automotive manufacturer is planning to invest $33.5
million into a new facility next to its current Huntington operations. The
new 130,000-square-foot plant project is expected to add up to 80
workers by 2020.
Construction Begins On Multi-Million Cargo Transfer Facility
A $13.5 million cargo transfer facility going up on Fort Wayne’s southeast
side is going to make the transportation of goods more efficient and
competitive in the tri-state region. Indianapolis-based Transpoint
Intermodal — which already operates rail-fed container terminals in
Mexico — began construction June 28 on its first U.S. facility on 74 acres
near the northeast corner of Adams Center and E. Paulding Roads.
Walmart To Build Nation’s Largest Milk Processing Plant
Walmart, the nation’s largest grocer, will build a more than 250,000-
square-foot, $165 million milk processing plant in Fort Wayne, which is
expected to be one of the largest in the industry. The plant will provide
new opportunities for Indiana’s dairy industry, creating more than 200
good-paying jobs ranging from milk processing to transportation by the
end of 2017. “Today, Indiana’s agriculture industry contributes $31 billion
to the state’s economy and supports more than 100,000 Hoosier jobs,”
said Governor Mike Pence.
$650M In High-Profile Projects Planned For Downtown
Greater Fort Wayne, Inc. unveiled their grand agenda for the next
decade, including approximately $650 million in high-profile projects in
and near downtown Fort Wayne. Five main projects include a downtown
arena, redevelopment of The Landing, the north Riverfront project,
redevelopment of the old GE campus, and a STEAM park.
Future GE Campus | Fort Wayne, Indiana
FORT WAYNE2Q16 INDUSTRIAL MARKET
OUR MARKET IN MOTION
www.cressyandeverett.com
Cold Heading | Freemont, Indiana
Transpoint Intermodal | SE Fort Wayne, Indiana
Walmart Milk Processing Plant | South Fort Wayne, Indiana
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FORT WAYNE2Q16 INDUSTRIAL MARKET
NOTABLE LEASE TRANSACTIONS
Tenant Building Submarket Type Square Feet
Mullinix Packages, Inc. 3405 Meyer Road Fort Wayne East Direct 321,600
Tradition Transportation Co. 300 Growth Parkway Fort Wayne Northeast Direct 73,000
Hunar Sakri Duesenburg, Inc. 3328-3330 Congressional Parkway Fort Wayne Northwest Direct 25,000
Newcomed FW, LLC 8414 Clinton Park Drive Fort Wayne Northwest Direct 19,500
NOTABLE SALE TRANSACTIONS
Building Submarket Sale Price Price/SF Square Feet
201 RE Jones Road Fort Wayne Northeast $5,100,000 $22.24 229,225
1400 N Detroit Street Fort Wayne Northwest $452,500 $20.67 21,885
2650 Congressional Parkway Fort Wayne Northwest $900,000 $69.44 12,960
2907 American Way Fort Wayne South (Airport Area) $530,000 $72.70 7,290
SUBMARKET STATISTICS
Submarket
Area
Total
Inventory
(SF)
Under
Construction
(SF)
Total
Vacancy
Rate (%)
Quarter
Absorption
(SF)
Warehouse/
Distribution
Lease Rates
(Price/SF)
R&D Flex
Lease Rates
(Price/SF)
Total Lease
Rates
(Price/SF)
Fort Wayne
Northeast13,525,504 60,000 4.4 -40,682 $3.70 $4.91 $4.30
Fort Wayne
Northwest4,491,944 N/A 6.2 278,222 $2.92 $4.62 $3.77
Fort Wayne
Southeast11,038,024 N/A 4.0 -155,500 $3.25 $4.80 $4.02
Fort Wayne
Southwest11,435,024 825,000 3.3 30,000 $3.65 $4.61 $4.13
Fort Wayne East 6,267,962 N/A 13.6 -125,356 $2.48 $4.60 $3.54
Fort Wayne CBD 1,556,123 N/A 1.6 20,012 $3.46 $4.51 $3.98
Fort Wayne South
(Airport Area)20,742,756 N/A 5.2 76,669 $2.87 $4.30 $3.58
TOTALS 69,057,337 885,000 6.4% 83,365 $3.19 $4.62 $3.90
www.cressyandeverett.com
Newmark Grubb Cressy & Everett (NGCE) quarterly market reports are a compilation of data from multiple sources. The data is reviewed quarterly and adjusted due to circumstances in the market, such as new construction and demolition.
The vacancy square footage is compiled from a combination of online data from multiple major listing services, broker provided listing information and industry knowledge. NGCE has created this report to provide the most accurate
information possible. We do not assume responsibility, however, for errors, omissions, prior sale, lease or withdrawal from the market.
4
Research
FORT WAYNE2Q16 INDUSTRIAL MARKET
www.cressyandeverett.com
TOTAL
INVENTORY
UNITED STATES STATE LOCAL
TOTALINVENTORY
(SF) 15.1B 624.5M 69M
VACANCYRATE
6.2% 6.9% 6.4%
NETABSORPTION(% OF INVENTORY) 0.31% 0.26% 0.12%
AVERAGELEASE RATE
(PSF) $6.36 $3.55 $3.90
UNDERCONSTRUCTION
(SF) 153.8M 2.1M 885,000
UNEMPLOYMENTRATE
4.7% 5.0% 4.0%
HOW DO WE
COMPARE?
“Vacancy levels are expected to decline over the next 12 months which should boost developer
confidence levels enough to catalyze the construction of new speculative buildings. The City of
Fort Wayne is offering incentives to help with the carrying cost of assets built in their development
areas as a means of growing local businesses and attracting new business to the area.”
Bill Drinkall, Managing Director
Fort Wayne Office
Market Perspective
All information contained in this publication is derived from sources that are deemed to be reliable. However, Newmark Grubb Cressy & Everett (NGCE) has not verified any such information, and the same constitutes the statements and representations only of the source thereof, and not of NGCE. Any recipient of this publication should independently verify such information and all other information that may be material to any decision that recipient may make in response to this publication, and should consult with professionals of the recipient’s choice with regard to all aspects of that decision, including its legal, financial, and tax aspects and implications. Any recipient of this publication may not, without the prior written approval of NGCE, distribute, disseminate, publish, transmit, copy, broadcast, upload, download, or in any other way reproduce this publication or any of the information it contains.
©2016. Newmark Grubb Cressy & Everett has implemented a proprietary database and our tracking methodology has been revised. With this expansion and refinement in
our data, there may be adjustments in historical statistics including availability, asking rents, absorption and effective rents.
Research
Bill DrinkallManaging Director
260.399.4057 (o)
260.715.3408 (c)
Years of Experience
15
Areas of Specialization
Medical
Office
Retail
Investment (All Segments)
Zach MeyerAssociate Broker
260.399.4057 (o)
260.417.2185 (c)
Years of Experience
4
Areas of Specialization
Industrial
Medical
Office
Retail
Meet Our Team
FORT WAYNE2Q16 INDUSTRIAL MARKET
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4100 Edison Lakes Parkway
Suite 350
Mishawaka, IN 46545
574.271.4060
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Fort Wayne, IN 46802
260.399.4057
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Suite 302
Grand Rapids, MI 49503
616.456.6400
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