135 N. Pennsylvania St. Indianapolis, IN
TYPE OF ASSET: Class A office
ADDRESS: 135 N. Pennsylvania St. Indianapolis, Indiana
YEAR BUILT: 1988. Renovated in 2016-2017
SIZE: 444,644 RSF
PARKING: 390 spaces on levels 2-6 & basement
Home to an unrivaled economy, workforce and quality of life, Indianapolis has become a thriving 24-hour metropolis. Indianapolis has one of the world’s largest and most diversified economies, with approximately 1.9 million people in the Metropolitan Statistical Area (MSA) and a gross domestic product (GDP) of approximately $134 billion.
ANNUAL GDP OVER $130 BILLION
27% POPULATION GROWTH
28.2 MILLION ANNUAL VISITORS
The Indianapolis tourism industry is taking a giant leap forward—a leap that will add to what is already a significant contribution to the city and state economy. Annual visitors spend roughly $4.9 billion dollars. Visitor spending supports more than 77,800 full-time equivalent employment positions in the hospitality industry. Tourism also produces $1.1 billion in tax receipts each year – including $682 million in local government tax. Tourism is big business and it is helping Indianapolis race ahead.
Additionally, Indianapolis is strategically positioned as an emerging technology/ creative hub that will continue to attract new and current companies from the industry, as well as top talent from universities across the country. As per CBRE, Indianapolis, considered a low-cost market, had the fourth highest tech-related job growth rate (28%) and rent increase (6%) after San Francisco, Charlotte and Pittsburg in 2017.
Due to Indianapolis’ thriving success story and model for revitalization, companies from around the globe, as well as the young, motivated workforce those companies want to hire are continually attracted to Indianapolis’ central business district (CBD).
The Indianapolis CBD office market is comprised of approximately 12.6 million square feet of office space, of which 47 percent is Class A. Investment activity is particularly high in the CBD with several major offerings either about to trade hands or hit the market. The Indianapolis economy is strong with the metropolitan area unemployment rate (MSA) at 2.9%, 70 basis points below the national average of 3.6%. The non-farming sectors continue to create new jobs, which shows a city that is increasingly consolidated with business and service activities.
Since 2015, the Indianapolis CBD has experienced positive rental rate growth of 8.4 percent, while direct vacancy declined 11.2 percent. More specifically, Class A rental rates in the CBD continue to experience unprecedented growth, increasing 11.3 percent since 2015, while Class A vacancy decreased 19.4 percent.