PCCP JV to Build 725 KSF Indianapolis Industrial Project
- Jun 28, 2019
PCCP LLC has established a new joint venture with Strategic Capital Partners LLC for the development of the next phase of Metro Air Business Park in Plainfield, Ind. The partners will erect two new industrial buildings totaling nearly 725,000 square feet at the 100-acre, metropolitan Indianapolis complex.
Metro Air sits adjacent to the Indianapolis International Airport on a site that had been owned by the Indianapolis Airport Authority before construction of the park commenced in 2006. The new joint venture will add Metro Air 8 and 9 to the mix with nary a tenant commitment in place at either building. “Despite additional supply, the market is demonstrating strong fundamentals,” Ryan Dodge, vice president with PCCP, told Commercial Property Executive. “We believe the site is well positioned versus competitive product and tenants value the main location.”
Metro Air 8 will be a rear-load facility encompassing approximately 223,500 square feet. Metro Air 9, a cross-docked building, will consist of roughly 501,400 square feet. PCCP and Strategic Capital plan to commence construction of the JRA Architects-designed warehouse/distribution facilities, which will rise at the intersection of Ronald Reagan Parkway and Stafford Road, in August, with delivery scheduled for the second quarter of 2020. The project marks the second joint venture endeavor for the companies at Metro Air. In mid-2018, they completed development of Metro Air 2 and 6, totaling nearly 500,000 square feet.
Indianapolis in demand
The strength of the Indianapolis industrial market has failed to wane for quite some time, as evidenced by a 10-year streak of positive net absorption totaling between 2 million and 8 million square feet annually since 2009, according to a report by Cushman & Wakefield. In the first quarter of 2019, the overall vacancy rate in metropolitan Indianapolis was just 4.6 percent. Additionally, 32 projects accounting for an aggregate 10.5 million square feet were under construction—and a notable 54 percent of the total was already preleased. Among the early commitments was LifeNet Health’s signing of a lease for approximately 68,100 square feet at the Gateway V project in HSA Commercial Real Estate’s Gateway Business Park in Plainfield.
Experts expect the positive fundamentals Dodge spoke of to persist in the Indianapolis industrial market through 2019. Per the Cushman & Wakefield report, business expansion will continue to spur demand for space in the area over the long term.