Downtown Indy releases updated Project List boasting $1.36 billion in new Downtown development
Downtown Indy released its updated Project List for Downtown which includes 58 projected developments in the pipeline with an investment of more than $1.36 billion to be completed between now and 2017. Since 1990, more than $12.4 billion has been invested Downtown and there’s no slowdown in sight.
Even in a recovering economy, Downtown development momentum continues. The return on these investments benefits the entire region with diverse employment options, a larger tax base, enhanced quality of life and increased visitation.
“Downtown is thriving and our Project List quantifies current and future growth,” said Sherry Seiwert, Downtown Indy president. “There is no stronger development story in Indiana, much less Marion County, than what we’re experiencing in Downtown Indianapolis. The remarkable and historic density of new residents and the renewed interest in business and commercial growth is resulting in increased amenities including restaurants and shopping, improved infrastructure, expanded transit options and a much stronger tax base. Plain and simple, Downtown is hot.”
Residential Opportunities Continue to Grow
Downtown has seen strong demand for amenity-rich apartments located in close proximity to dining, entertainment and wellness options. This demand continues to drive the surge in residential development. The public is willing to pay higher rates due to increased demand and unique experiences and amenities offered Downtown, illustrated by the 3.8 percent vacancy in higher-end apartment communities. The demand and rental supply growth has given developers confidence to add a wide range of living options. Downtown Indy is currently tracking more than $714 million of investment in residential living. All 3,945 units are scheduled to be completed by 2017. Highlights include:
- In 2015, the For Sale inventory will grow by more than 150 single family homes, condominiums and townhomes in up-and-coming Downtown neighborhoods. These units will range from $200,000 to more than $1 million.
- Downtown is seeing a trend of amenity-rich, multi-family developments that will continue to push the rent per square-foot to new record highs. Downtown led the state in rent growth in 2014 with a 3.8 percent increase over 2013.
- Developers see an opportunity to add more projects geared towards student housing. IUPUI is adding an additional 700 beds in 2015 on campus. Also proposed is a student housing project on Capitol Avenue and Michigan Street as well as phase two of 9 on the Canal.
- In the 2014 Developers Survey Data, 36 percent of the residents analyzed who are moving into Downtown were doing so from outside of Indiana. An additional 27 percent were moving Downtown from within the state but new to Marion County.
“We continue to be very bullish on infill apartment developments in Indianapolis’ Downtown core,” said Tony Knoble, principal of TWG Development LLC. “We have experienced strong demand from current and potential tenants of both our recently-completed, and soon-to-be-completed projects. Our residents are individuals that want to be able to walk to work and their favorite restaurants.”
Office Development Growing
With more than 11.5 million square-feet in Downtown’s office inventory, businesses, developers, entrepreneurs and artisans continue to invest Downtown. Of the $1.36 billion in the pipeline, $506.4 million is associated with commercial development. Highlights include:
- Repurposed commercial buildings are receiving a new shot at vitality in 2015. Examples within Regional Center* include the Hilton by Canopy (Illinois Building), Milhaus Headquarters (Shirley Engraving) and Penn Street Tower and Hotel (Consolidated Building).
- In 2015, the Downtown office market will add 140,000 square-feet of new, state-of-the-art office space, including The Marott on Mass Ave, Cummins Global Distribution Business Headquarters in Market East and The American Red Cross at 15th and Meridian streets.
- According to Summit’s 2014 Q4 update, 2014 office leasing activity in the central business district was up 75 percent from 2013.
Developers are impressed with what Downtown can offer, according to Rich Forslund, partner of Summit Realty Group, “Businesses are choosing to locate in Downtown Indianapolis due to the energy of the streets, the unparalleled access to sought-after employees and to connect to all the opportunities for collaboration that exist at the core of the city,” said Forslund.
*The Regional Center, Downtown’s boundaries, reaches to 16th Street on the north, I-65 & I-70 on the west and south and White River Parkway on the east.
Downtown Amenities Attracting New Residents, Visitors
Activity is up and owners/developers are spending significant money to make the office environment and skyline more appealing to the new sought-after workforce, the millennials.
- The $22 million YMCA at CityWay opening late this year will be a game changer. This facility will have two indoor pools, three gymnasiums and an elevated running track.
- The much-talked-about Downtown Transit Center will change Downtown’s dynamics. The $19.5 million center on Washington Street, along with IndyGo’s new routing plans, will shift the entire transit dynamics of Downtown.
- Downtown Indianapolis boasts the best entertainment, shopping and celebration options in the state. This trend will continue with the addition of new restaurants, distilleries, music and performance venues and shopping destinations. Highlights include Georgia Reese’s, The Grand Meridian and Whole Foods.
More people continue to come Downtown on a regular basis. Annual attendance at major Downtown leisure attractions has increased by 73 percent since 1994, with 7.6 million visits in 2013 according to Downtown Indy’s annual Downtown Indicators.
And there is more to come….
The momentum and innovation that has fostered $12.4 billion of investment in the last 25 years shows no signs of slowing down anytime soon. Key investment projects being tracked include the Angie’s List headquarters, the redevelopment of the General Motors Stamping Plant, Old City Hall repurpose, continued investment in 16 Tech, the City County Plaza public space and the Playscape along the Canal.
“The best is yet to come,” added Seiwert. “Downtown is attractive to people of all ages and offers a variety of homes in unique neighborhoods. Whether the view is overlooking Downtown’s Central Canal, high above ground level spanning the city or nestled in a historic neighborhood, each home lies in the heart of Indianapolis. And that heart is as healthy as ever.”