Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
Issue link: https://sct.epubxp.com/i/863214
48 S C T / S E P T E M B E R 2 0 1 7 to the IKEA. Nearby, Indianapolis-based Thompson Thrift Retail Group is at work on The Yard, a $40 million culinary and entertainment project that will house about a dozen restaurants. Also coming to town this fall is Portillo's, a purveyor of Chicago-style hot dogs and Italian beef sandwiches. In 2016 Condé Nast Traveler ranked Indianapolis the "most underrated food city in the U.S." Indeed, the picky palate will find many a food choice here, as some 40 restaurants line just the eight- block stretch of downtown's trendy Massachusetts Avenue. Condé Nast Traveler put one local venue, Milktooth, on its list of "best restaurants in the world," while Food & Wine magazine put Milktooth's chef, Jonathan Brooks, on its cover. Indianapolis is a regional stronghold in retailing, says Brandon Duff, Midwest director at Stan Johnson Co., a Tulsa, Okla.–based real estate investment sales brokerage. "It's one of the most stable and sought-after markets in the Midwest," Duff said, "and it's definitely one of the more attractive places from a national perspective as well." New development is also starting on the northwest side of Indianapolis, in the burgeoning suburban bedroom communities of Whitestown and Zi- onsville, both off I-65, which connects the city to Chicago. "We are extremely active in Indy, with our newest project being approximately 275,000 square feet in Whitestown," said Andrew Dettro, Midwest principal director of Cedarburg, Wis.–based RealtyLink. "This is our fourth and, to date, largest project in the market in approximately three years." Dettro says he expects tenants to be occupying space in the fall of next year. "You have a tremendous amount of growth," he said. "The demand is amazing. It's a phenomenal family community that is lacking shopping center opportunities. We view our site as the new regional shopping destination in northwest Indianapolis. It's a really hot market." Affordability is the attraction for homebuyers and developers. "As long as land prices continue to stay low to moderate, there are deals to be made," Dettro said. "If I'm working with a retailer who wants to be in a good, up-and-coming market, I'd go to Whitestown," said Murray. "If I'm going downtown, there's what we call 'Mass Avenue' — It's the hot little corridor right now of new, fresh shops and restaurants." All has not been smooth sailing for Indy's retailers, however. This year two long-established local chains — Marsh Supermarkets and appliance chain HHGregg — filed for bankruptcy. Still, Murray notes that Kroger and Fresh Encounter are picking up a lot of the Marsh spaces, while other retailers have expressed interest in the vacant HHGregg venues. "We're not worried about the closing of stores," said Murray. "We're still excited about the growth." The Fashion Mall at Keystone, owned by Indianapolis-based Simon, is still "the top mall in the city, if not the state, for a retailer to want to be," said Murray. Anchored by Nordstrom and boasting one of Apple's two stores in the state, this 1 million-square-foot, premier luxury shopping facility is almost 100 percent occupied. Simon's Castleton Square, a few miles away, is the state's largest enclosed shopping center, while the firm's Circle Centre Mall, in the heart of Indianapolis, appeals to downtown dwellers as well as to hundreds of thousands of conventioneers and tourists each year. "Indianapolis enjoys a vibrant retail scene, and its shoppers expect a robust mix of local and national retail brands, paired with a superior shopping experience," said Dewayne Herbert, Simon's vice president of marketing for the West and Midwest regions. Compared to other regions of the country, the cost of real estate in the Indianapolis area is very reasonable, according to Bill French, executive director and retail site selection specialist in the Indianapolis office of Cushman & Wakefield. "We're basically on flat land," French observed, "and as a result, we don't have the many impediments of lakes and rivers and mountains, which can hem in a trade area and cause things to be very expensive. There's a lot of room to grow." With a trade area comprising some 3 million people, French is optimistic. "We'll continue to see a lot of new retailers coming to the marketplace," he said. "We're very blessed that IKEA likes the demographics and the profile of our community." "We've had a lot happening here — some good, some bad," observed Scott Gray, a first vice president of brokerage services in the Indianapolis office of CBRE. "But overall, the market is solid." n The demand is amazing. It's a phenomenal family community that is lacking shopping center opportunities Milktooth (above) is one of the "best restaurants in the world," reckons Condé Nast Traveler S I T E S & C I T I E S