Slowdown expected in ’08 [Indianapolis Area]
Commercial real estate in the Indianapolis area is a riskier bet in 2008 than it has been for many years.
A national lending crisis has nearly ended the flow of out-of-state investment capital to the sector. With the money spigot turned off, at least for now, developers locally will find it harder to finance new office buildings, apartments and shopping centers. And owners of existing properties will have a tougher time finding buyers.
The lending crisis has hit just as the Indianapolis area’s commercial real estate markets went through a growth spurt in 2007. The thriving industrial market added 7.1 million square feet, the most active year for industrial construction in a decade.
Office developers built more space for multitenant use last year than any year since 2001.