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AND CBD20 MULTIFAMILY MARKET OVERVIEW20INDIANAPOLIS
INDY NAMEDA TOP-30 CITYWITH THELOWEST COSTOF LIVING IN2019NICHEINDIANAPOLIS COMPARED TO THE MIDWESTIndianapolis, with a growing metro population of over two million, is a shining star in the Midwest having securedits spot at the top of several national rankings. Known for its famous Hoosier hospitality, the metro is home to a diversebusiness and growing corporate base, highly educated workforce (the second highest higher education rates in the Midwest)world-class sporting events, high-end cultural attractions, as well as a growing list of shopping, dining and entertainment options.Residents benefit from an above-average quality of work-life balance, as reflected by consistently high national rankings and a steadyflow of new developments and job commitments. At the top of a growing list of notable examples, Salesforce, a San Francisco-based techcompany, recently opened its 40M regional headquarters inside Indy’s tallest high-rise and plans to expand its current workforce to more than2,000 local employees through 2021. The collective growth and accomplishments of the past decade have contributed to an influx of new andinstitutional investment dollars setting the city up for continued stability as we enter a dynamic new decade.TOP REASONS TO INVEST IN INDIANAPOLIS PRIME, CENTRALIZED LOCATION—within a one-day drive to50% of the nation’s population LOW COST OF DOING BUSINESS—Indiana is ranked in thetop 10 best states for State Business Tax Climate STRONG CORPORATE BASE—more than 10 Fortune 500,Fortune 1000, regional, national and international corporationshave headquarters or a large presence in the metro area SUPERIOR TRANSPORTATION INFRASTRUCTURE—Indianapolis ranks #1 in pass-through highways. The“Crossroads of America” is served by 11 highways and 8interstate spokes, more than any other city in the nation EXCEPTIONAL HIGHER EDUCATIONAL INSTITUTIONSPROVIDE A HIGHLY SKILLED WORKFORCE—More than 20colleges and universities within 70 miles of the city NATIONALLY RECOGNIZED, 79B LIFE SCIENCES SECTOR—The number of jobs in Indiana’s life sciences sector grew byabout 1 percent last year, to 56,323, and averages wagesclimbed 3 percent, to 97,607. The sector’s economic impactedged up about 1 percent, to 79 billion RICH CULTURE AND QUALITY OF LIFE—the city drawsattention for being vibrant and sophisticated as well as culturallyrich and hospitableINDIANAPOLIS MSA AT A GLANCE2019 POPULATION (Estimated)2,070,6262024 POPULATION (Estimated)2,179,467HOUSEHOLD GROWTH (2010 – 2019)EMPLOYMENT (Sept. 2019)EMPLOYMENT GROWTH (2010 – 2019)UNEMPLOYMENT RATE (Sept. 2019)2020 MARKET OVERVIEW17.5%1,088,00018.7%2.6%
A HAVEN FOR NOTABLE EMPLOYERSINDIANAPOLIS: HOME TO MAJOR CORPORATE HQsINDIANAPOLIS MSA TOP EMPLOYERS# EMPLOYEESST. VINCENT HEALTH 30,000IU HEALTH 30,000COMMUNITY HEALTH 14,000ELI LILLY AND CO 10,000KROGER 9,000IUPUI 7,000SIMON PROPERTY GROUP 5,000ANTHEM BLUE CROSS BLUE SHIELD 5,000ROCHE DIAGNOSTICS 4,000FEDEX HUB 4,000ROLLS ROYCE 4,000ALLISON TRANSMISSION 3,000ONE AMERICA 2,000IU SCHOOL OF MEDICINE 2,000# EMPLOYEES 30,000ELI LILLY & CO. FORTUNE 500 # 123SIMON PROPERTY GROUP FORTUNE 500 # 496 5,000ANTHEM INSURANCE FORTUNE 500 #33 5,000ROLLS ROYCE NORTH AMERICA 4,000ALLISON TRANSMISSION FORTUNE 1000 #817 3,000CALUMET FORTUNE 1000 #686 2,000ONEAMERICA 2,000SALESFORCE REGIONAL 2,000CNO FINANCIAL GROUP 1,0002019: ELI LILLYANNOUNCED PLANTO INVEST 400M ONMANUFACTURINGEXPANSON IN INDYEli Lilly Indianapolis Headquarters3
INDIANAPOLIS MSA ECONOMIC STATISTICS 226,3132019 AVERAGEINDIANAPOLISMSA HOMEVALUEAVG. HOUSEHOLD INCOME 90,000 85,000Households 80,000 75,000 70,000 65,000 60,000 55,000 8201920182019HOUSEHOLD GROWTHJobs Createdfrom 2010-2019White MENT 20112012Jobs20132014 20152016Unemployment ATION on1,050,000600,000Unemployment 22020 MARKET OVERVIEW20132014201520162017
INDY METRO MULTIFAMILY STATISTICSSELECT INSTITUTIONALEQUITY SOURCESRISK PREMIUM FOR OWNING INDY METRO MULTIFAMILY8.00%6.00%427480393 3573812592015 2016 20172.66%1.58%2.16%2.54%2.49%2.66%2005 2006 2007 2008-9 2010 2011 2012 2013 20142018 2019YTDTOP-5O RENT & OCCUPANCY 1,300 1,25095.2% ge Quoted Rent 1,243 1,282 1,252Q3’18 1,222Q2’18 1,210Q1’18 1,229Q4’17 1,243 1,233 1,150 1,100Q4’18Q1’19Q2’19Q3’19Q4’19Average Occupancy RateCORE & VALUE-ADD CAP TE%2.27%5.00%110 132 1,232Cap Rate/10-year UST7.00%2015201620175.00%20184.76%20194.76% Indianapolis Core & Value-Add CapRates for 2019 Multifamily TransactionsThe collective Indianapolis offering and theaccomplishments and accolades of the past tenyears have contributed to an influx of new andinstitutional investment dollars seeking exposure inthis stable, dynamic and fertile market.CBD SOURCES CPPIB EAGLE REALTY (WESTERN & SOUTHERN LIFE) GIC INVESTCORP LUBERT-ADLER PARTNERS STEPSTONESUBURBAN SOURCES COVENANT CAPITAL DRA ADVISORS EAGLE REALTY FAIRFIELD/BROOKFIELD GARRISON INVESTMENT GROUP GOLDMAN HARTF0RD INVESTMENT MANAGEMENT INDEPENDENCE REALTY TRUST INLAND JP MORGAN SENTINEL TORCHLIGHT INVESTORS VIRTUS5
MORE THAN 20COLLEGES ANDUNIVERSITIESWITHIN 70MILES OFINDIANAPOLISINDIANAPOLIS COMPARED TO THE MIDWESTThe Indianapolis metro ishome to several colleges anduniversities with an enrollment ofmore than 83,000. The city draws onclose relationships with some of the state’stop universities such as Indiana University,Purdue University and The University of Notre Dameand continues to benefit from a state-wide focus toreinvest in education in order to keep top talent in Indiana.Evidence of the success of these initiatives lies in Indianapolis’consistent ranking as a top city for recent college grads andhigh levels of white collar employment. The CBD has thesecond highest higher education rates in the Midwest.MIDWEST WHITE COLLAR S CITYMILWAUKEEMINNEAPOLISST.LOUISMIDWEST HIGHER EDUCATION ASSOCIATES DEGREE ROITINDIANAPOLISKANSAS .0%61.0%43.9%39.5%AVG. ANNUAL HOUSEHOLD GROWTH 2010-20195.00%5.00%4.00%4.00%MSACBD4.27%4.27%The IndianapolisMSA and CBDhave the highesthousehold growthrates in 0.00%0.00%-1.00%-1.00%In dia nap ol isINDIANAPOLISChi ca goCHICAGOClev elan dCLEVELANDDetr oitDETROITKansa s Ci tyKANSAS CITYMi lwa uk eeMi nneap ol isMILWAUKEE MINNEAPOLISSt Lo ui sST.LOUISAVG. ANNUAL POPULATION GROWTH 2010-2019MSA5.00%5.00%4.00%4.00%CBDThe IndianapolisMSA and CBDhave the highestpopulation growthrates in 1.00%1.00%0.00%0.00%-1.00%-1.00%In dia nap ol isINDIANAPOLISChi ca goCHICAGO2020 MARKET OVERVIEWClev elan dCLEVELANDDetr oitDETROITKansa s Ci tyKANSAS CITYMi lwa uk eeMi nneap ol isMILWAUKEE MINNEAPOLISSt Lo ui sST.LOUIS57.8%
INVESTMENTS DRIVE DEVELOPMENTCBD/MSA 1.5BMSA 600MMSA 425MMSA 157MMSA 300MCBD 155MCBD 500MCBDELI LILLY EXPANSIONHILTON SIGNIACONVENTION CENTER EXPANSION 400MTBDCBDCBD 138MCBDELI LILLY EXPANSION 400MCBDHEALTHY CBD ECONOMIC DEVELOPMENT PIPELINEOne city blockbordered by Market,Alabama, Washington& New Jersey StreetsRiders along Phase 1 of the RedLineboardedover230,000times during the first full monthof operation. Future phases areproposed to connect the cities ofWestfield, Carmel, Indianapolis andGreenwood.Other cities have outdated transitoptions, but Indianapolis is usingadvanced technologies for futuregrowth. The city has already startedtransitioning to plug-in vehicles viaBlueIndy, the largest all-electric carsharing program in the country.THE NATION’S TOP AIRPORT AND LOGISTICS HUBBroad RippleKessler54th Street52nd Street46th Street42nd Street38th Street34th Street30th/MuseumFall Creek22nd StreetIU Health14th Street9th StreetVermontStatehouseNew JerseyFletcher PlaceFountain SquarePleasant RunRaymondGarfield ParkTroyUniversityNISODMAThe 1B Indianapolis Int’l Airport(IND) ranked #1 in North Americafor the 6th straight year by CondeNast Traveler. Averaging 145 dailydepartures, IND is known to havethe best customer services practicesand makes an impressive 5.4 billionannual economic impact. IND isnow a top-10 cargoairport, fueled by thespike in e-commerceand the continuedexpansion of FedExwhich operates theworld’s second-largestFedEx Express hub inIndy.66th StreetSHELBYIndianapolis International Airport (IND)Indianapolis recently launched thefirst battery-electric bus rapid transit(eBRT) in the U.S. The Red Line,which is part of the city’s plan to bea leader in advanced transportationand smart technologies, connectsseveralneighborhoods,majoremployers and cultural attractionsand travels within a quarter mile ofmore than 50,000 residents andnearly 150,000 jobs along its 13mile route.CAPITOLCUMMINS, INC.DISTRIBUTION HQINDY GO RED LINE MASS TRANSITMERIDIANDowntown has amassed an impressive development pipeline that will fuelthe resident, worker and consumer base through the current decade andbeyond—60 projects, nearly 3B, are planned through 2022.91st StreetCOLLEGEFED EX CARGO HUB EXPANSIONROLLS ROYCE EXPANSIONINFOSYS TECHNOLOGY HUBNICKEL PLATE DISTRICTBOTTLEWORKS DISTRICTCITY WAY MIXED USE16 TECH DISTRICTPRICESMART TRANSPORTATIONTECHNOLOGIESMERIDIANMAJOR PLANNED AND ONGOING DEVELOPMENTS PARTIAL LISTCountyLineRoad7
SUPERBOWL XLVITHE “BESTCOLLECTIVEEFFORT BYANY HOSTCITY”ESPNLIVE, WORK AND PLAY IN INDYIndianapolis’ new trajectory of growth is driven primarily by a rapidly expanding hospitality sector, world-class sportingevents and citywide conventions, coupled with new job commitments and corporate expansions throughout the CBD fromcompanies such as Eli Lilly, Infosys, Rolls Royce and Salesforce. Indianapolis’ technology, logistics, and bio/life sciences ( 60 billion state-wide industry) sectors have positioned the Indianapolis metro as a leader in this space across the Midwest and are fuelingIndianapolis into the next decade and beyond. Indianapolis has secured its title as the “Silicon Valley of the Midwest” and is experiencingexponential growth. In the CBD alone, tech companies lease more than 450,000 square feet of space and employ more than 17,000. Thisgrowth is rooted in an exceptionally solid base of convention, sporting and CBD expansion activities that help the city’s economic velocity. Asproof, the metro area has gained more than 170,000 jobs since 2010. With a current employment base of nearly 140,000 in the CBD and only22,000 CBD residents, there is opportunity for phenomenal CBD household growth as the population continues to seek proximity to employment andrich urban experiences.Indianapolis is one of the most complete, highly-amenitized and most desirable mid-size CBDs in the nation with five unique cultural districts that featurenumerous shopping, dining and entertainment options, as well as walkable streets and world-class sporting venues. As evidence of the nation’s businesscommunity looking to leverage the city’s central location and low cost of doing business, Indianapolis was selected as a finalist for the coveted Amazon HQ2and .was considered to be a top four contender among the 20 finalist cities in 2019 considered to be a top four contender among the 20 finalist cities in 2019.Indy’s educated work force, central US location, Eastern time zone, world-class airport, affordability and high quality of life, were contributing factors to thecity’s consideration.THE CBD BAR CONTINUES TO RISE3,577Total MultifamilyUnits*93.0%AverageOccupancy*WORLD-CLASS SPORTING & EVENTS 1.89AverageRent PSF* 1,599AverageRent*Sports is a catalyst for development and positivechange throughout the Indianapolis region.Hoosiers have a rich history of hosting professionaland amateur sporting events, most notably theIndy 500, the world’s largest one day sportingevent. Home to the NCAA, Indiana Sports Corp,the Dallara IndyCar Factory, and a wide arrayof professional sports teams, Indy knows a thingor two about competition. Total sports industryemployees in the Indianapolis Region:13,000 . *Based on stabilized conventional CBD properties built in 2008 or later.2020 MARKET OVERVIEWNCAA CHAMPIONSHIPSNFL COMBINEBIG TEN FOOTBALL CHAMPIONSHIPINDIANAPOLIS COLTSINDIANA PACERSINDY FUEL HOCKEYINDY 500INDY ELEVEN PROFESSIONAL SOCCERPGA TOUR (BMW CHAMPIONSHIP)NASCAR BRICKYARD 400CIRCLE CITY CLASSICOLYMPIC TRIALSSUPER BOWL XLVI
Westfield is home to Grand Park, a nationallyrecognized, 400-acre planned, youth andadult recreational sports village, surroundedby expanding dining, retail and entertainmentvenues. The quickly evolving community featuresan award-winning school district, numerous trailsand parks and convenient access to downtownIndianapolis.CARMELWESTFIELDMETRO HOT SPOTS2019 AVERAGE HOUSEHOLD INCOME: 157,2592019 AVERAGE HOUSING VALUE: 401,391Zionsville is often regarded as offering oneof the most sought-after lifestyles of any townin Indiana with average housing values morethan double the Indianapolis MSA averages. Apopular destination, the renowned Zionsville“Village”, features tree-lined cobblestonestreets, an abundance of local restaurants,shops and entertainment.FISHERSZIONSVILLE2019 AVERAGE HOUSEHOLD INCOME: 120,5762019 AVERAGE HOUSING VALUE: 314,516BROAD RIPPLEOne of Indianapolis’ designated culturaldistricts, Broad Ripple Village is a livelyneighborhood with an abundanceof bars, art galleries, locally ownedrestaurants and boutique shops. Locatedtwo miles from Butler University, BroadRipple is home to hot nightlife as well asbeautiful greenways and parks.MASS AVEMassachusetts Avenue is a five-blockarea of downtown Indianapolis richin new bars, restaurants and localshops. Listed on the National Registerof Historic Places in 1981, Mass Ave isoften regarded as the best area to eatand drink in the city.FOUNTAIN SQ30 MILESPLAINFIELDLocated on I-69, less than 30 minutesfromdowntownIndianapolis,Fishers is an accessible and fastgrowing community with a richblend of growing and establishedbusinesses. The Nickel Plate District,Fisher’s developing downtown, iscurrently undergoing a 157 millionmixed-use makeover.2019 AVERAGE HOUSEHOLD INCOME: 131,3732019 AVERAGE HOUSING VALUE: 326,4192019 AVERAGE HOUSEHOLD INCOME: 162,1942019 AVERAGE HOUSING VALUE: 458,009Plainfield, located less than 10 miles fromthe downtown core, is on the expanding westside of Indianapolis, which is consideredthe city’s logistics hub. Plainfield’s richemployment base is a major draw for highlyeducated residents choosing to move closeto where top employers continue to located.The city of Carmel is a rapidly growing, award-winningcity located just north of Indianapolis. Carmel isknown for its highly-desirable school system and safe,distinct residential neighborhoods rich in affluent estatehomes. Carmel’s downtown Arts & Design Districtfeatures several restaurants, boutique shops andcultural attractions.Known for its funky mix of locallyowned restaurants, art galleries andlive-music scene, Fountain Square is arapidly evolving cultural destination justsoutheast of downtown.9
INDACCOLADES
32 PLACES TO GO AND EAT IN 2019- FOOD AND WINEAIRBNB’S HOTTEST CITIES- CURBEDBEST PLACES TO GO IN 2020- FROMMER’STOP 100 PLACES TO LIVE- LIVABILITYON THE FAST TRACK TO FINE FOOD- BLOOMBERG#1 AIRPORT IN NORTH AMERICA- J.D. POWERAMERICA’S MOST UNDERRATED CITY- FORBES#1 CONVENTION CITY- USA TODAYAMERICA’S 20 FAVORITE FOOD CITIES- FOOD AND WINEBEST STADIUM OF THE YEAR- LUCAS OIL, STADIUM JOURNEY MAGAZINETOP 15 BIKING CITY- BICYCLING MAGAZINE
STEVE LAMOTTE JR.Executive Vice President 1 317 269 1018steve.lamotte@cbre.comDANE WILSONSenior Vice President 1 317 269 1057dane.wilson@cbre.comALEX POSSICKAssociate 1 317 269 1141alex.possick@cbre.com 2020 CBRE, Inc. This information has been obtained from sources believed reliable. We have not verified it and make noguarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only anddo not represent the current or future performance of the market.CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and othercountries. All other marks and photos displayed on this document are the property of their respective owners.Sources: Business Insider, CBRE, Inc., Chief Executive, Downtown Indy, Inc., Environmental Systems Research Institute (ESRI), FastReports, Food & Wine, Forbes, HoosierData.In.Gov, Indianapolis Business Journal (IBJ), Indy Chamber of Commerce, Kiplinger,Money Magazine, Niche.com, Nielsen, Patch.com, Software.org, Time Magazine, Travel & Leisure, U.S. Bureau of Labor Statistics,U.S. Census Bureau, U.S. News & World Report.
Westfield, Carmel, Indianapolis and Greenwood. Other cities have outdated transit options, but Indianapolis is using advanced technologies for future growth. The city has already started transitioning to plug-in vehicles via BlueIndy, the largest all-electric car sharing program in the country. The 1B Indianapolis Int'l Airport
