Real estate update: Indiana developers and contractors keep busy, see a stable market for 2008.

• Author: Hromadka, Erik
• Position: REAL ESTATE & CONSTRUCTION

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WHILE A LAGGING residential real estate market mired in the subprime mortgage mess has dominated headlines in the past year, Indiana's developers and contractors report healthy activity in the state's commercial and light industrial sectors.

From new distribution centers and office buildings to university dorms and laboratories, a number of large projects have been constructed in the past year and many more are on the drawing board for 2008.

The following projects include some of the major developments in Indiana that will shape the commercial real estate market in the coming years.

Duke Realty Corp.

As one of the largest commercial real estate companies in the United States, Duke Realty Corp. operates from its Indianapolis headquarters and is active in its home state. One of its major Indiana projects is the long-term development of residential, retail, office and industrial properties at Anson, a 1,700-acre area along Interstate 65, northwest of Indianapolis in Boone County.

"Essentially, Anson is a new mixed-use community that will be in development for the next 10 to 15 years," says Joel P. Reuter, Duke's vice president of communications. "It will be home to an anticipated 6,000 residents and 13 million square feet of commercial space."

In the coming year, Reuter says, continued development of Anson should include site announcements of industrial and medical office buildings at AllPoints at Anson, as well as educational facilities, hotels, retail and residential development.

In the industrial sector, Reuter expects continued growth in the bulk industrial market, as the region continues to develop rail capabilities and intermodal logistics. One such project is AllPoints Midwest, a joint venture between Duke Realty and Browning Investments. The project is located near the Indianapolis International Airport and borders the CSX intermodal rail facility near U.S. 40 and the new Ronald Reagan Highway

When completed, Reuter says AllPoints at Anson and AllPoints Midwest will be home to some 10,000 jobs for new and existing businesses who locate in Hendricks and Boone counties. Duke and Browning are investing $745 million in the development of both parks.

"All developers continue to watch the tightening of the credit markets, which may influence development in the short term," he says. "However, Indiana is expected to continue experiencing strong development activity in key submarkets."

Browning Investments

Indianapolis-based Browning Investments is one of the largest developers of modern bulk distribution facilities in the Midwest and has number of major developments in central Indiana that are currently expanding.

Browning Construction is nearing completion on two speculative bulk distribution facilities totaling more than 1.B million square feet. Both the 947,333-square-foot building in AirTech Business Park and the 646,380-square-foot AllPoints Midwest Building 1 are expected to be completed by the end of the year.

"Our team at Browning will continue to focus on our industrial development projects in the coming year including continued growth at AllPoints Anson, AllPoints Midwest (both joint venture projects with Duke) and AirTech (a joint venture with ProLogis), says director of business development Bob Gallant. "Additionally, we are exploring other land positions in central Indiana and throughout the Midwest and South.

Browning is also working with the Fort Harrison Reuse Authority to bring new development to the Village Center at the former army base in Lawrence and the company has similar consulting projects for the cities of Beech Grove, Westfield and Speedway.

"The local market seems pretty well . insulated, at...