East Washington Street near-term catalyst development plan


ReEnergize East Washington Street


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ReEnergize East Washington Street 

18

officE   +   industrial market



induStRiAl outlook

At the end of 2012, the vacancy rate of the 

Indianapolis industrial sector was 3.3% and 

has remained low into 2013 (4.2% as of the 

second quarter of 2013). Due to this, rents 

were expected to increase by 1.6% in 2013.  

These low vacancy rates have led to a 

significant  amount  of  speculative  industrial 

development (3.2 million square feet) under 

construction as of January, 2013. This 

compares  with  1.7  million  square  feet  in 

Chicago, 900,000 square feet in Cincinnati, 

and 350,000 square feet in Minneapolis 

during the same period.

As a distribution hub at the convergence of 

more interstate highways than any other 

U.S. city, Indianapolis is well-positioned for 

industrial growth



REcovERy

Decreasing Vacancy Rates

Low New Construction

Moderate Absorption

Low/Moderate Employment Growth

Neg/Low Rental Rate Growth



EXPAnSion

Decreasing Vacancy Rates

Moderate/High New Construction

High Absorption

Moderate/High Employment Growth

Med/High Rental Rate Growth



hyPER SuPPly

Increasing Vacancy Rates

Moderate/High New Construction

Low/Negative Absorption

Moderate/Low Employment Growth

Med/Low Rental Rate Growth



REcESSion

Increasing Vacancy Rates

Moderate/Low New Construction

Low Absorption

Low/Neg Employment Growth

Low/Neg Rental Rate Growth



1

2

3

3

3

3

2

2

2

1

1

1

Employment growth is expected to 

be limited in the East Washington 

study area, requiring the are to be 

competitive with other growing areas 

in Indianapolis.

Creative efforts will be necessary 

as  the  corridor  rates  significantly 

lower than the county average in 

educational attainment, household 

income, and home ownership levels.

Metro Area

Marion County

2012

Study Area

Metro Area

Marion County



2020

Study Area



760,008

468,125

1,020,770 - 34% GROWTH

494,770 - 6% GROWTH

2,277

3,000 - 32% gRoWth

EMPloyMEnt gRoWth

100K


1M

100K


1M

Indianapolis’  industrial  and  office  markets  are  in  the  first  stage  of  recovery,  characterized  by  decreasing 

vacancy rates, low new construction, moderate absorption, low to moderate employment growth, and low 

to  negative  rental  rate  growth.  The  industrial  market,  however,  has  seen  significantly  more  speculative 

construction than other Midwestern cities.

thE MARkEt cyclE

induStRiAl MARkEt outlook

89+0+17+60+91+46+86+30+58+25+38+57+490+0+0+0+0+0+0+0+0+0+0+16+0

10

8

6



4

2

0



(2)

Millions


10%

8%

6%



4%

2%

0%



2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

AnticiPAtEd 

dEMAnd

 foR officE 

SPAcE iS loW...

Uncertainty and slow growth for the 

future  have  left  Indianapolis’  office 

sector somewhat stagnant. 

Vacancy  rates  in  both  the  city  and 

suburbs  hover  around  20%.  Job 

growth  is  expected  to  be  flat,  and 

speculative  development  is  rare  at 

the moment.

officE MARkEt outlook

officE 

VACANCY %



 And 

nEt AbSoRPtion

0+53+43+45+0+28+47+49+24+29+34+19+38+82+0+0+0+0+0+0+0+0+0+33+0+0+0+65+56+24+0+06+26+0+0+0+25+59+32+0+42+69+24+14+8+71+18+38+11+0+0+0+0+0+0+0+0+0+2+0+0+0+18



2005 

1Q

2006 

1Q

2007 

1Q

2008 

1Q

2009 

1Q

2010 

1Q

2011 

1Q

2012 

1Q

300


200

100


0

(100)


(200)

20%


15%

10%


5%

0%

Source: Cassidy Turley Research



officE 

VACANCY %



 And 

nEt AbSoRPtion

Source: Cassidy Turley Research



coMPEtitivE 

EnviRonMEnt foR 

nEW jobS

2013•2020 

19

industrial  land  use



i1u - Restricted industrial urban

• 

Manufacture, Assembly, Repair of 



Light Goods (clothing, audio/video 

equipment, small appliances, etc...)

• 

Warehousing, Wholesaling, 



Distribution

• 

Agricultural



• 

Data processing, Labs (Dental, 

Research, or Engineering)

• 

Railroad, Heliports, Wireless Towers, 



Billboards

• 

Industrial schools or training facilities



• 

Mini-warehouses

• 

Offices, with a permitted industrial 



use

• 

Day care center



i2u - light industrial urban

• 

Manufacture, Assembly, Repair 



of Medium Goods (Motorcycles, 

Biological products, Computers, 

Cosmetics, Electrical components, 

Medicines, Paper products, Signs, 

Medical supplies, Tools, Toys, 

Printing, Upholstering 

• 

Private / Commercial Radio or TV 



Antennas

• 

Broadcasting studios or offices



• 

Bottling of beverages

• 

Construction companies & their 



storage

• 

Secondary processing and 



packaging of food products initially 

processed off the premises



i3u - Medium industrial urban

• 

Industrial  Bakery,  Canning,  Processing,  Granaries,  Mills,  Coffee  Roasting 



(Does not include slaughtering)

• 

Electric transmission and distribution



• 

Machine, Tool and Die, Welding, Sand blasting, Transmission shops

• 

Rolling, extruding, stamping, electroplating, heavy fabrication of metal



• 

Manufacture,  Assembly  or  Repair  of  Heavy  Goods  (Major  household 

appliances, Boats and Autos, Containers, Clay products, Paint and varnish 

(no  tar),  Communication  equipment,  Construction  machinery,  Elevators, 

Fabricated  metal  and  glass,  Furniture,  Machinery,  Brewing,  Natural  gas, 

Paper, Textiles, Tobacco products.

• 

Motor truck terminals less than 10 acres, Vehicle storage (new or operable 



only)

• 

Storage of heavy equipment (as a primary use)



• 

Power plant; electric, steam, thermal

• 

Propane gas storage.



• 

Recycling facility (not auto or construction material)

• 

Refrigeration and service industry machinery.



i-2

zoning 


area

1-65/1-70

medium

INDUSTRY


i-3 zoning area

i-1


zoning 

area


i-1

zoning area

medium

INDUSTRY


i-3 zoning area

pr mallory area

light   INDUSTRY

i-2   zoning area

state  to  rural

light   INDUSTRY

i-2   zoning area

red  cats

light   

INDUSTRY


i-2   zoning area

 neighborhood

LIGHT

   INDUSTRY



i-2   zoning area

transition to office area

light   INDUSTRY

i-2   zoning area

shredding site

medium  INDUSTRY

i-3 zoning area

0   


m

iles


0.25   

m

iles



0.5   

m

iles



1.

0   


m

iles


2.

0   


m

iles


WhAt uSES ARE cuRREntly AlloWEd

indy REZonE + thE Study AREA

futuRE Zoning iSSuES

Nearly the entire length of the corridor in the study area and significant parcels north and south 

are designated I-2 (Light Industrial) or I-3 (Medium Industrial).  This does not reflect the current 

land uses, which are more diverse and evolving, nor the area plans, which are more mixed-use 

in nature.

About indy REZonE

The current zoning shown above and all zoning in Marion County is currently being addressed by 

a process called Indy Rezone. “Indy Rezone is a project undertaken by the City of Indianapolis 

to  update  the  city’s  zoning  ordinances  and  associated  development  regulations  to  be  more 

sustainable and more livable.” (www.indyrezone.org)

Rather than align land use plans and zoning districts, Indianapolis has historically relinquished 

any zoning changes to property owners, which results in ad hoc and inefficient land use patterns.  

However, Indy Rezone promises to revise 1970s era zoning to a 21st century regulatory framework 

to support Indianapolis’ economic development strategy. 


ReEnergize East Washington Street 

20

Market Segment

incubAtE

innovAtE + cREAtE

fAbRicAtE

SERvicE

MAnufActuRE

WAREhouSE

character

Mind


Mind + hand

Mind + hand + Machine

hand + Machine

Machine


Building + Lot

value creation

$$$$$


$$$$

$$$

$$$-$$

$$

$



barrier to Entry

Very High



Moderately high

Moderate

low

Low


Low

differentiation

Very High



Moderately high

Moderate

Moderate

Moderately Low

Low

Workforce Education 

/ training

PhD, Masters



Masters, bachelors, 

Associate

bachelors, Associate, high 

School

Associate, high School

Associate, High School

High School

Wages

High


high-Moderate

Moderate

< Moderate

< Moderate

> Minimum



Quality of Space

Inspired, boutique; campus; 

Co-creative environments; 

Access to knowledge

lifestyle

creative urbanism; co-

creative environments; 

Access to lifestyle 

amenities

industrial urbanism; 

Efficient and flexible

industrial flex; Efficient and 

flexible

Factory; Buffers and 

separated uses

Large lot; Buffers and 

separated uses

compatible uses

Education, housing, live/

work, service retail, office, 

light industrial



Education, housing, live/

work, service retail, office, 

light industrial

Education, housing, live/

work, service retail, office, 

light industrial

Service retail, office, light 

industrial

Service retail, office, light 

industrial

Service retail, office, light 

industrial

transportation 

needs

Multiple modes, including 

transit within 1/4 mile

Multiple modes, including 

transit within 1/4 mile

Multiple modes, ease of 

truck movement

Roads, central location 

relative to customers

Shipping corridors - rail/

highway/air

Shipping corridors - rail/

highway/air

Real Estate needs

Diverse, agile and high 

investment space; new 

construction



Small-medium footprint 

space; tech infrastructure; 

adaptive use

Small-medium footprint 

space; tech infrastructure; 

adaptive use

Medium footprint sites; 

simple low-investment 

buildings; low cost

Large-footprint sites; simple 

low-investment buildings; 

utility infrastructure

Very large footprint sites; 

simple low-investment 

buildings

critical network

University R&D; knowledge 

clusters

Related service providers; 

material providers

complementary service 

providers; transportation

customer base; supply 

chain

Raw material providers; 

utility infrastructure; storage 

and waste recyclers

Transportation

Example

ANGEL Learning



Angie’s list

harvey cycle Works

horner industrial group

Coca Cola Enterprises

Amazon.com

evolving   office  +  industrial   use   segments



PRoPoSEd 

MARkEt SEgMEntS

to tARgEt

Source: Urban Land Institute; Urban Green LLC; Greenstreet Ltd.



PRoPoSEd tARgEt SEgMEntS

Over  time,  many  East  Washington  Street  industries 

left for suburban locations for various reasons - larger 

parcels,  easy  truck  access,  lower  taxes,  and  new 

highway  infrastructure.  Today  some  new  employers 

are  moving  into  the  area,  notably  Angie’s  List  and 

expansions  by  Horner  Electric.  Others  businesses, 

however, continue to consider other locations.

Employment generating land uses have gone beyond 

conventional  real  estate  asset  classifications,  such 

as  “Office”  and  “Industrial”  to  be  defined  more  by 

business type, rather than the real estate itself.  There’s 

an opportunity for East Washington Street to focus its 

resources on the evolving segments where it can be 

most competitive, in an effort to retain and gain new 

business in the corridor.

Three such sectors that align with the existing assets 

and strategies for the corridor include Innovate+Create, 

Fabricate,  and  Service.    While  not  excluding  other 

sectors,  East  Washington  Street  should  pursue 

employers in these segments.

EXiSting SEgMEntS

A  review  of  segments  within  the  corridor  revealed 

that while there is a wide variety of businesses types, 

primarily clustered in four sectors:



•  innovate + create

1 Large-scale Office Business



•  fabricate

2 Mid-sized Businesses



•  Service

6 Small Businesses



•  Manufacture

2 Businesses, 1 Small, 1 Mid-size

In addition, there is a multi-business complex, industrial 

suppliers,  and  a  cluster  of  various  sized  service 

industries located on the western edge of Holy Cross 

Neighborhood. 



MARkEt SEgMEntS

2013•2020 

21

office + industrial  STRATEGIES



dEclinE in dEMAnd foR tRAditionAl officE SPAcE

Demand for traditional office space has seen a decline, however, other types are on the rise. The Indianapolis 

office market has a large supply of traditional office space available. This is indicative of the rise of small business 

start-ups that prefer either co-working space, or shared spaces such as those managed by Regus.

The average office space per worker has declined from a few hundred sq. ft. to about 150 sq. ft. in recent years 

as technology advances have pushed workers out of the traditional cubicle. In contrast, Regus, which provides 

flexible  workspace  for  short  term  rent,  virtual  workspace,  and  other  mobile  working  services,  has  expanded 

worldwide.  They  opened  243  new  locations  in  2012  alone,  signalling  fast-changing  needs  for  21st  century 

businesses.

Attracting new businesses is vital for the future health of East Washington Street. Large-scale businesses can 

sometimes be used to recruit their suppliers to nearby locations. Two support businesses that Angie’s List 

would benefit from are business-IT integration services and commercial printing. As Angie’s List continues to 

expand, so will their supply chain. Keeping these services nearby not only better supports existing business, 

but may attract other businesses with similar needs.



WhAt iS buSinESS-it intEgRAtion?

Business-IT Integration aims to reorganize the structure of a business around value streams, with both the 

business and IT sides of the enterprise constantly working together as one to innovate and adapt quickly. This 

has been shown to reduce IT costs, bring products to market quicker, and foster innovation and communication 

with an enterprise. This is different from the old model, when business teams would come up with a new idea, 

and someone would have to “throw it over the wall to the IT dept” to figure out how to implement it.



coMMERciAl PRinting SERvicES

Angie’s List produces a monthly periodical and various other print media, so having a commercial printer 

nearby would improve operations efficiencies. These companies generally require 7,500 square feet to 50,000 

square feet in light industry zoning.

The Speak Easy in Broad Ripple

Image Courtesy of twentysomethingindy.com

700

600


500

400


300

200


100

0

8%



6%

4%

2%



0%

2012

2011

2010

2009

2008

2007

 induStRiAl EASt SubMARkEt

VACANCY %



 And 

nEt AbSoRPtion

Source: Cassidy Turley Research



EASt SubMARkEt conditionS

Conditions have improved vastly since 

the recession in Indianapolis’ East 

Submarket for the industrial market. 

Once  peaking  around  7%,  vacancy  is 

now  down  to  4%,  reflecting  economic 

recovery.

EASt SubMARkEt induStRiAl outlook

WhAt iS co-WoRking?

Co-working  is  office  space  for  single  users  to  share 

amenities,  including  basic  office  supplies  and  services. 

Examples in Indianapolis include Indy CoZ in Castleton, 

DeveloperTown and The Speak Easy is South Broad 

Ripple, Launch Fishers, and The Bureau in Fletcher Place. 

Some of these are simply co-working spaces that provide 

shared services, like a mailing address, copiers, etc, for a 

monthly or yearly fee, allowing for less overhead. But some 

are business incubators or accelerators, which actively 

try to invest in, coach, or train entrepreneurs starting a 

business.



goAl 2: focuS on EXiSting buSinESSES + thEiR SuPPly chAin

Ivy Tech Community College is a significant anchor institution on the corridor.  Currently, Ivy Tech operates an 

automotive program but the college is resource constrained.  The current 35,900 sq. ft. facility on three acres is 

too small to meet current program demand and Ivy Tech has limited funding for capital projects.  Ivy Tech may 

relocate its automotive program and, if so, the corridor would lose an important and stable center of activity, with 

300 students and 7 faculty and staff.  

An opportunity exists to develop a ‘blue collar’ incubator for skilled tradespeople to develop other important skills 

to support entrepreneurial ventures.  Many so-called blue collar jobs require years of experience to develop a high 

level of expertise, which can be transferable.  Further, by developing the skills required, former skilled tradespeople 

can become entrepreneurs through the development of new products or services.   



EXAMPlE incubAtoR

A relevant example exists in Detroit - the Blue Collar Innovation Center provides workers with skills to move into 

emerging industries such as alternative energy, green industries, life sciences, and energy efficient automotive 

products.  The center assists workers in developing new skills necessary to participate in these emerging industries.



goAl 1: REcogniZE Evolving WoRkPlAcES

goAl 3: incubAtE ‘bluE collAR’ jobS

The center assists start-ups in three ways:

• 

Provide  a  resource  for  existing  businesses  to  physically 



build out their product ideas and prototypes.

• 

Provide a feeder for new startups.



• 

Assist  start-up  companies  in  becoming  successful  for-

profit or sustainable nonprofit entities.

The Center’s services and resources include:

• 

Office space



• 

Technical support

• 

Grant writing



• 

Access to capital

• 

Leadership, professional, and development training



• 

Legal framework to support patent and licensing activities

• 

Managerial, law, and business expertise



• 

Assistance acquiring capital, grants, and/or investors



ReEnergize East Washington Street 

22

industrial  corridor  case  studies

Element of the Plan: Bishop’s Creek is located on a former 

tannery site that now houses 55 apartments and on-site 

family and children’s services.

Source: Milwaukee Dept. of City Development.

Contrary to East Washington Street, the Park Hill area lacks 

a central spine road for interstate access. An extension of 

12th street to Industrial Road helps both existing users and 

the visibility of under-utilized parcels.

Source: Louisville Economic Development Dept.

A new green roof has been planted on the Metro Archives building.

Source: brokensidewalk.com

Reusable building stock is one of Park HIll’s strengths. This 

can allow for competitive pricing and a unique character for 

reuse.


Source: Louisville Economic Development Dept.

Element of the Plan: Century City is the proposed 

redevelopment strategy for a large, under-utilized industrial 

area along a rail corridor. A new truck access road through 

the middle of the site gives good access to industrial users, 

while moving truck traffic away from residential areas to the 

east. 

A competitive marketing strategy was developed for the 



proposed modern business park. To the east, a linear park 

with green stormwater management solutions improves 

the buffer between the industrial and residential areas. The 

residential street grid is improved with connections along 

this park, and multifamily residential provides a link between 

the neighborhood and the new park.

Source: Milwaukee Dept. of City Development.


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