A vice president at Cushman & Wakefield says, at the midpoint of 2016, it is one of the best years on record for commercial real estate in Indiana. Jason Tolliver says organic growth, foreign direct investment and a desire for live-work-play developments has fueled growth in almost every sector. He says development is growing in some areas of the state where there is not enough space to meet demand. During an interview on Inside INdiana Business Television, Tolliver said he expects a "really strong end" to 2016.
Tolliver says one stand-out sector is office developments, where Indiana is outpacing the nation. He says the United States office sector began the year "soft," but tech momentum in Indiana has the state performing better. He calls the retail sector a continuing "bundle of contradictions." While many department stores are "right-sizing" their footprints, he says restaurants are driving growth.
Indiana is enjoying the top end of the current business cycle, but, beginning next year, Tolliver says it might be time to "play both offense and defense." He says 2017 looks "pretty positive," but adds the cycle will end at some point. As time goes on, Tolliver says tenants might have more leverage, meaning landlords may want to try to long in long-term deals now.
Indiana is coming off of a strong 2015 as well. During the State of Real Estate in February, Tolliver said 2015 was one of the top five years on record for leasing demand throughout the state, driven in part by increasing wages and decreasing oil prices.
Cushman & Wakefield completed its $2 billion merger with Chicago-based DTZ in September. The combined operation has more than 43,000 employees and over $5 billion in revenue.