Duke Realty Breaks Ground on New Indianapolis HQ
- Sep 25, 2018
Duke Realty Corp. is one big step closer to making its new Indianapolis corporate headquarters a reality. The industrial REIT and joint venture partner PK Partners LLC recently broke ground on 8711 River Crossing Blvd., a 78,000-square-foot office building where Duke will be the sole office tenant.
8711 River Crossing will take shape on 2.9 acres within River North at Keystone, a mixed-use destination being developed by PK Partners in the upscale Keystone at the Crossing district. The office building will be co-owned by the developer and Duke upon its completion, with Duke leasing its space, Wesley Podell, senior vice president with PK Partners LLC, told Commercial Property Executive.
Duke, which currently maintains its home base less than four miles away at 600 E. 96th St., had very specific reasons for building its own headquarters.
“Duke Realty feels it is important to create a state-of-the-art work environment that allows us to attract and retain top talent in both the short-term and long-term, enhance collaboration and employee connection, make the workplace experience seamless and showcase our strong brand and culture,” Nick Anthony, chief investment officer for Duke Realty Corp., told CPE. “This facility, which will provide a collaborative environment coupled with nearby amenities, accomplishes that.”
Construction is estimated at $25 million, according to Duke, which will set up shop in 73,000 square feet of the LEED-Silver-designed building, leaving the remaining 5,000 square feet to operate as a retail space that will be occupied by a restaurant. For Duke, the office space will not only provide cutting-edge accommodations, it will pave the way for location consolidation. “Our new headquarters also will ensure that all of our Indianapolis associates will be located in one facility, which would have been difficult to accomplish in existing properties,” Anthony said.
Build-to-suit office developments are trending in Indianapolis. Per a report by commercial real estate services firm CBRE Group, which is handling lease-up of the retail space at 8711 River Crossing, three office buildings totaling approximately 430,000 square feet were under construction during the second quarter, and all three are build-to-suit properties. The projects, two of which are mixed-use, will be headquarters locations for KAR Auction Services, Merchants Bank and MJ Insurance.
Duke and PK Partners expect to complete the development of 8711 River Crossing in time for the REIT to relocate in late 2019. Local officials praise Duke’s decision to stay put in Indianapolis and have shown their support through the approval of approximately $2.9 million in tax increment financing for the headquarters project.
Images courtesy of Duke Realty Corp.