Yardi Matrix: Indianapolis Shifts to Higher Gear
- Feb 14, 2017
Albeit modest, the Indianapolis multifamily market is gaining momentum, offering plenty of room for growth. Company expansions and relocations are boosting job growth, fueling demand for apartments and driving up rents. Gains were highest in the trade, transportation and utilities sector, the locale’s dominant industry. A strong business climate and a surge in the technology sector are also pushing employment to record highs.
In 2015, more than 220 domestic and global firms announced that they will locate or grow operations in Indiana. Together, these businesses intend to invest nearly $3.7 billion in their local operations and create 20,320 new Hoosier jobs in the coming years, according to the Indiana Economic Development Corp. Employers with the largest commitments include Salesforce, which aims to add 800 jobs in Indianapolis; Allied Solutions, which is set to bring 600 new jobs to Carmel; and MOBI Wireless Management, which plans to create 520 jobs in Zionsville.
Like most Midwest cities, Indianapolis does not command sky-high rents or eye-popping investment sales prices, but it offers investors higher acquisition yields than the nation’s primary markets. Given the city’s strong apartment absorption and low vacancy, developers continue to be active, especially downtown. This trend will likely continue, since the population in this particular submarket is expected to nearly double by 2018.
Read the full Yardi Matrix report.