INDIANAPOLIS RETAIL MARKET
SLATED TO IMPROVE

INDIANAPOLIS, March 15, 2010 – While retail fundamentals in Indianapolis will continue to soften this year, signs of a recovery are emerging, according to the 2010 National Retail Report by Marcus & Millichap, the nation’s largest real estate investment services firm. A resumption of job growth in the second half of 2010 ultimately will increase consumer confidence and spending.

“While a limited listing pool hindered deal flow through much of last year, the number of offerings is anticipated to grow in 2010 as more owners market their properties due to refinancing difficulties or in an attempt to realign their portfolios,” says Joshua Caruana, regional manager of Marcus & Millichap’s Indianapolis office.

Following are some of the most significant aspects of the Indianapolis Retail Research Report:

• Led by hiring in the professional and business services sector, the local labor market will rebound in 2010 with the addition of 9,000 jobs, or a 1 percent payroll expansion.
• Approximately 290,000 square feet of new retail space is scheduled to come online in the metro this year, following the completion of 844,000 square feet in 2009.
• Vacancy is forecast to tick up 30 basis points to 12.8 percent by year-end 2010.
• Asking rents will slip 1.1 percent to $14.00 per square foot this year, while effective rents will fall to $11.58 per square foot, an annual decline of 4.1 percent.

Also included in the report is the firm’s annual National Retail Index (NRI), a snapshot analysis that ranks 44 retail markets based on a series of 12-month forward-looking supply and demand indicators. Indianapolis moves down one place this year to No. 29. Washington, D.C., claimed the top spot in this year’s National Retail Index (NRI) for the second year in a row due to a low vacancy rate and healthy job growth. Projected job gains boosted San Diego one place to No. 2 and a lack of significant construction in recent years moved San Francisco up one notch to No. 3. Forecasted job growth elevated New York City four places to No. 4 and continued layoffs dropped New Jersey three places to No. 5, despite low vacancy and the state’s relatively steady economy.

For a copy of Marcus & Millichap’s National Retail Report and the complete NRI rankings, visit www.MarcusMillichap.com.

With more than 1,200 investment professionals in offices nationwide, Marcus & Millichap Real Estate Investment Services is the largest firm specializing in commercial real estate investment services in the nation. Marcus & Millichap closed 3,441 transactions in 2009, the highest of any commercial real estate brokerage firm. Founded in 1971, the firm has perfected a powerful system for marketing properties that combines product specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology and relationships with the largest pool of qualified investors nationally.

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