A hot market? South Bend builds on its diverse economy.

• Author: Wieneke, Heidi Prescott
• Position: Regional Report North

A YEAR AGO, SOUTH BEND was ranked one of the Top 40 hottest real-estate markets for business. Other cities on the list from Expansion Management magazine included Indianapolis, Cleveland, Milwaukee, Houston and Denver. South Bend made the list for the first time based on available land, office and industrial space inventory, along with redevelopment opportunities for new and expanding companies.

The city of South Bend is redeveloping the old Studebaker Brothers Manufacturing Co. and Oliver Chilled Plow Works industrial corridors for warehousing and distribution, with hopes to recruit light-industrial companies south of downtown. Blackthorn Corporate Park is expanding with new research-and-development firms. The downtown office market is witnessing resurgence, and the south side is seeing new investment from retailers and restaurants.

"We're large enough to have the resources to support business and provide a great quality of life, but small enough to be friendly," says South Bend Mayor Stephen J. Luecke. "As we look to the future, we want to build on our existing strengths and help our existing businesses thrive. We've learned a diverse economy is good for us."

Location is one of South Bend's biggest assets and the main reason the city has become a hub for manufacturing and distribution.

Whether it's research and development at Bosch Braking Systems and Underwriters Laboratories, services provided by Crowe Chizek and Co. and Press Ganey Associates, or distribution and warehousing operations at AJ Wright and Tire Rack, location is critical to South Bend's business base.

The city is enjoying retail development as well. The old Scottsdale Mail property was recently demolished to make way for Erskine Village, a 510,000-square-foot, $35 million retail center. It will feature a large strip mall and a number of multi-tenant buildings and freestanding restaurants.

Diversity has helped the local economy weather tough times.

"We have a little bit of everything," says Sharon Kendall, director of South Bend's department of economic and community development. "We are the regional center for the banking, legal and service entities, and with our universities, we have a leg up on other communities."

By partnering with businesses in R&D projects, providing strong job-market candidates and employing about 4,800 people, the University of Notre Dame plays a critical role in maintaining and strengthening the diversity of the economy.

"We're here because the...