The industrial real estate market in Indianapolis saw strong growth in the third quarter of 2012. Net absorption was 642,882 square feet, bringing year-to-date absorption to 1,961,080 square feet. The overall vacancy rate declined to 3.8%, well below national and regional averages. Several submarkets significantly outpaced others in terms of absorption and declining vacancy rates. The market is forecast to continue outperforming the Midwest region, with low vacancy and increasing rents expected through 2013.

1. Industrial
Market
Snapshot
Indianapolis, Indiana
Third Quarter 2012

2. Industrial Market Snapshot
Indianapolis • Third Quarter • 2012
Market Tracker Vacancy Net Absorption (Qtr) Net Absorption (YTD)
*Arrows indicate Qtr.Qtr trend 3.8% 642,882 1,961,080
Overview
Net absorption for the third quarter of 2012 registered 642,882 SF, placing net growth for
the year at 1,961,080 SF. Leasing velocity in the Central Indiana industrial market
continues to track at an impressive clip with 3.0 MSF of new leasing and over 3.1 MSF of
renewals and expansions inked through the first three quarters. As a result, the greater
Indianapolis market is among the best-performing industrial markets in the nation and is
outperforming all other Midwestern markets relative to year-to-date net absorption.
Submarket variations in year-to-date net absorption included the South (+636,604 SF),
Indianapolis Industrial
East (+560,062 SF), Southwest (+584,113 SF), West (+441,959 SF), Northeast
3Q12 3Q11
(+209,438 SF), Downtown (+42,416 SF), North (+16,279 SF), Southeast (-11,414 SF)
and Northwest (-518,377 SF).
Inventory SF 239,644,682 240,292,586
Vacant SF 9,020,362 11,290,002 The overall industrial market vacancy rate currently stands at 3.8%, down 90 bps from a
Vacancy Rate 3.8% 4.7% year prior. This places Central Indiana industrial vacancy markedly lower than both the
U.S. and Midwest averages of 9.1%. Variations in submarket vacancy for all product types
Occupied SF 230,624,320 228,993,584
included the Southeast (1.9%), South (2.2%), North (2.5%), West (2.5%), Southwest
Net Absorption (Qtr) 642,882 -230,710 (3.3%), Downtown (3.8%), East (4.2%), Northwest (5.1%), and Northeast (5.4%). Across
Net Absorption (YTD) 1,961,080 3,867,496 the market, product-type variations in multi-tenant vacancy were comprised of transport
(1.4%), modern bulk (1.7%), maintenance (1.8%), manufacturing (2.6%), traditional bulk
(4.5%), medium distribution (5.0%), flex (8.4%) and office showroom (8.8%).
Vacancy Rate
Vacancy Rate Forecast
10%
• entral Indiana will continue to outperform the Midwest and U.S. relative to absorption
C
Historical Average
8% and vacancy. Industrial vacancy will remain historically low, tracking below 4 percent for
6%
the remainder of 2012 and into 2013. Leasing velocity will remain vibrant, and upward
pressure on asking rates will occur. Expect year-over-year average industrial asking
4%
rates to increase between 2 and 3 percent by year-end at the current pace of growth.
2%
• eveloper interest is returning to the market. Expect to see build-to-suit activity and the
D
0%
2005 2006 2007 2008 2009 2010 2011 2012 reemergence of speculative industrial development continue, with sizable projects
coming online in 2013.
U
• ncertainty and slowing demand from abroad, particularly the EU, remain significant
Net Absorption headwinds. Further, signs of slower growth emerging from China and Brazil do not bode
Net Absorption
8,000,000 well. Other data is more encouraging, however. Residential construction, which typically
accounts for 20 percent of warehouse occupancy, has clearly been trending up. Further,
6,000,000 demand for durable goods will continue and this will support growth in transportation
4,000,000
and distribution enterprises. Correspondingly, expect continued commercial demand
along major interstate corridors.
2,000,000
• ver the last two quarters macro-economic risks have shifted to the downside,
O
0
particularly in the short term, but our overall outlook for the economy and industrial
2007 2008 2009 2010 2011 2012
sector has not changed measurably from that we proffered at the beginning of the year.
Net Absorption
Longer-term, the Indianapolis metro area will continue to benefit from a well-diversified
economy and a reasonable cost structure, which will attract a steady inflow of new
residents and businesses. As a result, industrial demand is expected to be above the
Midwest average over the forecast horizon.
cassidyturley.com

3. Cassidy Turley Industrial Market Snapshot—All Product Types
Indianapolis Area • Third Quarter • 2012
Inventory VACANT VACANCY OCCUPIED OCCUPANCY NET ABSORPTION NET ABSORPTION
Submarket
(SF) (SF) RATE (SF) RATE (QTR) (YTD)
Downtown
3Q2011 17,643,392 685,291 3.9% 16,958,101 96.1% (113,160) (61,413)
2Q2012 17,661,406 625,642 3.5% 17,035,764 96.5% (5,134) 82,366
3Q2012 17,661,406 665,592 3.8% 16,995,814 96.2% (39,950) 42,416
EAST
3Q2011 45,070,818 2,214,212 4.9% 42,856,606 95.1% 204,050 513,888
2Q2012 45,162,578 1,937,321 4.3% 43,225,257 95.7% 560,124 573,333
3Q2012 45,095,710 1,883,724 4.2% 43,211,986 95.8% (13,271) 560,062
NORTHEAST
3Q2011 17,971,554 985,929 5.5% 16,985,625 94.5% (48,705) 148,538
2Q2012 18,002,865 1,012,379 5.6% 16,990,486 94.4% 51,626 98,597
3Q2012 18,071,053 969,726 5.4% 17,101,327 94.6% 110,841 209,438
NORTH
3Q2011 4,576,882 188,067 4.1% 4,388,815 95.9% 53,200 117,578
2Q2012 4,547,083 224,403 4.9% 4,322,680 95.1% (68,135) (66,135)
3Q2012 4,517,012 111,918 2.5% 4,405,094 97.5% 82,414 16,279
NORTHWEST
3Q2011 44,038,871 2,189,306 5.0% 41,849,565 95.0% 97,309 1,341,636
2Q2012 43,894,366 1,844,511 4.2% 42,049,855 95.8% (216,522) (280,922)
3Q2012 44,062,755 2,250,355 5.1% 41,812,400 94.9% (237,455) (518,377)
SOUTHEAST
3Q2011 17,610,005 328,014 1.9% 17,281,991 98.1% 34,983 228,654
2Q2012 17,609,975 351,398 2.0% 17,258,577 98.0% (73,434) (23,414)
3Q2012 17,609,975 339,398 1.9% 17,270,577 98.1% 12,000 (11,414)
SOUTH
3Q2011 12,045,384 1,287,716 10.7% 10,757,668 89.3% (277,129) (25,570)
2Q2012 12,473,857 903,523 7.2% 11,570,334 92.8% (22,396) 8,604
3Q2012 12,473,857 275,523 2.2% 12,198,334 97.8% 628,000 636,604
SOUTHWEST
3Q2011 60,778,743 2,501,531 4.1% 58,277,212 95.9% (153,970) 1,444,875
2Q2012 61,178,196 1,986,671 3.2% 59,191,525 96.8% 13,614 653,810
3Q2012 61,170,145 2,048,317 3.3% 59,121,828 96.7% (69,697) 584,113
WEST
3Q2011 20,556,937 918,936 4.5% 19,638,001 95.5% (27,288) 159,310
2Q2012 18,982,769 645,809 3.4% 18,336,960 96.6% 348,283 271,959
3Q2012 18,982,769 475,809 2.5% 18,506,960 97.5% 170,000 441,959
TOTALS
3Q2011 240,292,586 11,299,002 4.7% 228,993,584 95.3% (230,710) 3,867,496
2Q2012 239,513,095 9,531,657 4.0% 229,981,438 96.0% 588,026 1,318,198
3Q2012 239,644,682 9,020,362 3.8% 230,624,320 96.2% 642,882 1,961,080
Industrial Market Overall Change in Inventory, Net Indianapolis Industrial Statistics
Indianapolis Industrial Statistics
Absorption Vacancy Rate
Indianapolis Industrial Market Distribution of Vacant Space by Product TypeType
Distribution of Vacant Space by Product
Overall 3rd Quarter 2012
Change in Inventory, YTD Net Absorption, and Vacancy
2nd Quarter 2012
Square Feet
Office/Showroom
10 10% 16.7%
Millions
9 9%
8 8% Maintenance Medium
7
6 7% Transport Distribution
5 6%
4 5% 0.5% 27.4%
3 4%
2 3%
1
2%
0 Manufacturing
-1 1%
-2 0% 19.4%
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Absorption Inv Change Vac %
Flex
6.7%
Traditional Bulk
Modern Bulk 18.1%
11.3%

4. Cassidy turley Industrial Market notable transactions (ytd)
Indianapolis Area • Third Quarter • 2012 • Transactions greater than 50,000 SF
lease renewals and expansions
sQuare sQuare
CoMpany subMarket CoMpany subMarket
FootaGe FootaGe
Anderson Merchandisers South 703,496 Carrier West 442,138
Prime Distribution South 412,000 HP Northwest 419,046
Undisclosed Northwest 380,160 OHL Southwest 413,280
Regal Beloit Southwest 376,000 Jacobson Warehouse Company Southwest 333,566
Atkins East 211,500 Venture Southwest 299,000
Smart Warehousing Southwest 190,440 Ceva Plainfield 283,000
Celadon South 157,500 Genco West 177,600
Thermal Structures Southwest 141,000 Venture Southwest 140,000
Fagerdala Southwest 120,429 Keller Crescent Co. Northwest 122,000
AVC Southwest 100,000 Crycovac Northwest 120,000
Rolls Royce Southwest 85,000 Hanzo Logistics Southwest 106,145
FiServe Southwest 75,542 Wurth Northwest 96,000
total square Feet 2,953,067 Stericycle Southwest 52,800
Wurth (expansion) Northwest 51,600
Simpac, Inc. Southwest 50,000
total square Feet 3,106,175
Indianapolis Industrial Market
Industrial Market traditional and and Modern Bulk Space
Traditional Modern bulk space Historical Vacancy rates
Historical Vacancy Rates
Indianapolis Area • Third Quarter • 2012 3rd Quarter 2012
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11%
9%
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Indianapolis Industrial Market
Industrial Market Flex space Historical Vacancy rates
Flex Space
Historical Vacancy Rates
Indianapolis Area • Third Quarter • 2012 3rd Quarter 2012
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Contact Information
18%
Jason w. tolliver, J.d.
16% Research Director
14% One American Square, Suite 1300
12% Indianapolis, IN 46282
t 317.634.6363
10%
F317.639.0504
8%
The information contained within this
6% report is gathered from multiple sources
considered to be reliable. The information
4% may contain errors or omissions and
2% is presented without any warranty or
representations as to its accuracy.
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All Types Flex

5. Indianapolis Industrial Market Statistics Third Quarter
Indianapolis Industrial Market statistics—all product types 2012—All Product Types
Indianapolis Area • Third Quarter • 2012
North Northeast
Inventory 4,517,012 SF Inventory 18,071,053 SF
Vacant SF 111,918 SF Vacant SF 969,726 SF
Vacancy Rate 2.5% Vacancy Rate 5.4%
YTD Net Absorption 16,279 SF YTD Net Absorption 209,438 SF
Northwest
Inventory 44,062,755 SF
Vacant SF 2,250,355 SF
Vacancy Rate 5.1%
YTD Net Absorption (518,377) SF
East
Inventory 45,095,710 SF
Vacant SF 1,883,724 SF
Vacancy Rate 4.2%
West YTD Net Absorption 560,062 SF
Inventory 18,982,769 SF
Vacant SF 475,809 SF
Vacancy Rate 2.5% Downtown
YTD Net Absorption 441,959 SF Inventory 17,661,406 SF
Vacant SF 665,592 SF
Vacancy Rate 3.8%
YTD Net Absorption 42,416 SF
Southeast
Inventory 17,609,975 SF
Vacant SF 339,398 SF
Vacancy Rate 1.9%
Southwest YTD Net Absorption (11,414) SF
Inventory 61,170,145 SF
Vacant SF 2,048,317 SF
Vacancy Rate 3.3%
YTD Net Absorption 584,113 SF
South
Inventory 12,473,857 SF
Vacant SF 275,523 SF
Vacancy Rate 2.2%
YTD Net Absorption 636,604 SF
about Cassidy turley Contact Information
Cassidy Turley is a leading commercial real estate services provider with more than 3,600 professionals in more Jason w. tolliver, J.d.
than 60 offices nationwide. The company represents a wide range of clients—from small businesses to Fortune Research Director
One American Square, Suite 1300
500 companies, from local non-profits to major institutions. The firm completed transactions valued at $22 billion
Indianapolis, IN 46282
in 2011, manages 455 million square feet on behalf of institutional, corporate and private clients and supports
t 317.634.6363
more than 28,000 domestic corporate services locations. Cassidy Turley serves owners, investors and tenants
F 317.639.0504
with a full spectrum of integrated commercial real estate services—including capital markets, tenant representation,
The information contained within this
corporate services, project leasing, property management, project and development services, and research and report is gathered from multiple sources
consulting. Cassidy Turley enhances its global service delivery outside of North America through a partnership considered to be reliable. The information
with GVA, giving clients access to commercial real estate professionals in 65 international markets. Please visit may contain errors or omissions and
is presented without any warranty or
www.cassidyturley.com for more information about Cassidy Turley. representations as to its accuracy.
Copyright © 2012 Cassidy Turley.
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