Amazon killing Indiana

Blueone

Blueone

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Jan 24, 2007
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Lake Erie, Ohio
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I don’t really keep up with what Amazon is doing to the rest of the country. Recently I started looking to expand my company with a building in Indianapolis. So I reached out to a friend and neighbor who is the head guy in Indy for commercial property. He basically said Amazon in Indy has driven all industrial real estate thru the roof. First of all there is no availability. What you can find is the highest price in history….. industrial park land is $135k/acre. 2006 I bought a 125k sqft plant from Delco Remi for $3.5M …. He said that bldg is worth $12M today. Amazon going into Elkhart will destroy the area

https://apple.news/ATt2_Gk0hTu-R0RKC6EXg6A
 
They are a big bully for sure. The days of going into a business and having the owner of the business make change for you is fading fast.
 
Blueone said:
I don’t really keep up with what Amazon is doing to the rest of the country. Recently I started looking to expand my company with a building in Indianapolis. So I reached out to a friend and neighbor who is the head guy in Indy for commercial property. He basically said Amazon in Indy has driven all industrial real estate thru the roof. First of all there is no availability. What you can find is the highest price in history….. industrial park land is $135k/acre. 2006 I bought a 125k sqft plant from Delco Remi for $3.5M …. He said that bldg is worth $12M today. Amazon going into Elkhart will destroy the area

https://apple.news/ATt2_Gk0hTu-R0RKC6EXg6A
Click to expand...
Time to retire maybe??
 
Not sure how Amazon going in and overpaying for labor is raising industrial real estate prices. Seems to me it would push those compeating for that labor to move and drive RE pricing down.
 
Golfman25 said:
Not sure how Amazon going in and overpaying for labor is raising industrial real estate prices. Seems to me it would push those compeating for that labor to move and drive RE pricing down.
Click to expand...
Because Amazon demands local supply. Not unlike my industry where they want your inventory next door on your dime. Amazon has taken over Indy for the cross roads. Here is part of the email from the real estate agent…. My mistake not $135k/acre… $160k/acre

Hi John –

Thanks for the opportunity!

I’ve included the following items / info:
  • Purchase options
    • Unfortunately, there is nothing that fits this criteria. The market is extremely tight and the properties that are out there, are going for top dollar – think over $100/SF.
    • The options that do exist are in bad shape – see attached.
  • Build-to-suit
    • This is certainly an option to consider, however – I am working with a client right now who’s building a 25,000 SF industrial building (it does have 10,000 SF of office) but it’s priced at $196/SF for new construction. This did not include the land which was $160,000/acre.
  • Lease options
    • There are quite a few of these that would work and what I’m advising many of my clients to do until the market cools off
    • Please see attached for the list of lease options.
    • Washington Business Park – #2 on this list, is a good option. They have a spec building being constructed now that will lease out a portion of it.
Thanks!
 
Blueone said:
?…. No Phuck Amazon…. Did you miss the point?
Click to expand...
No I didn’t miss the point. I get your point but there’s nothing you can do ….so go ahead and continue to vent or retire and you no longer have to worry about it.:)
 
Actually it’s worse in Illinois so count yourself lucky.
 
Blueone said:
...

  • Build-to-suit
    • This is certainly an option to consider, however – I am working with a client right now who’s building a 25,000 SF industrial building (it does have 10,000 SF of office) but it’s priced at $196/SF for new construction. This did not include the land which was $160,000/acre.
    • ...
Click to expand...

I don't have any clue as to what commercial construction costs are in this area (northern Michigan), but that seems like a bargain considering new construction residential is >350/sf around here!


But I do agree with the Phuck Amazon senitiment!
 
Amazon is building two HUGE distribution centers in our city. The smaller of the two is 1,000,000 square feet, the larger is 250,000 feet larger than that.

1500 employees will be hired. People are complaining about the what the traffic situation will become, and rightfully so. Where they're putting those two buildings is on the eastern edge of town.

Announced today is a development on the west side of town with 1300 homes and stores to follow. Growth is good. Mostly.
 
Amazon has a big DC east of us in a large, fairly new industrial park. There is a large blood plasma facility there as well. Rivian, a LI battery manufacturer is also moving there, a once rural area where folks escaped from ATL. A lot of contention as you can imagine, our local development authority is a friend, so I hear a few things. We'll see how it goes. I doubt they will find enough employees around here, no one wants to work.

Elkhart, Goshen, Ligoneer- RV capital of the world as I recall. Worked a couple years up there at my companies facility in Ligoneer, stayed. Good folks up there.
 
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