Welcome to the heart of the Nation

Our recent State of Real Estate presentation gives us the opportunity to take a broad outlook of our area economy and the State of Real Estate and how it affects our economy as a whole. The real estate market as a whole has faired better in our area than most of Indiana and much better than the national outlook. Reason, we are diverse. While the closing of Whirlpool hurt the area economy, many people could see the writing on the wall as Whirlpool's work force dwindled to 900. Not only did it affect the employment numbers but also put 1,500,000 sq. ft. of space vacant in the existing plant and another 900,000 sq. ft. of space on the market with the two St. George Rd. warehouses going vacant for the first time in 40 years. This, coupled with the already over supply of industrial space, has brought lease prices for Industrial space to an all time low that creates opportunity like we haven't seen since the Eighties. Some large blocks of space as low as $1.00 per sq. ft. being able to offer 900,000 sq. ft. of space with rail, additional acreage, abundance of docks in a central location brings opportunity to our area. There was an abundance of Industrial volume in 2010 in our area as over 2,000,000 sq. ft. was either leased, sold, or rehabbed for new tenants.

The retail growth was moderate as no new big boxes were built in the entire State of Indiana in 2010. Our area showed moderate absorption and some new construction only in trophy locations with the construction of several up-scale strip or plaza style centers being built. Corporate closures by Borders, Blockbuster, and Linen and Things have created opportunity for new retailers such as Fresh Market, a 100 store chain coming to Evansville Pavilion and giving our area grocers a much needed bit of competition. The retail growth will continue along the north side and the U.S. 41 area created by the new construction of North High School and the many north side subdivisions.

The office market saw moderate growth, but most activity was a repositioning of existing tenants, unfortunately, not new tenants coming to the market. Most activity was centered in Downtown Evansville as the area awaits the grand opening of the new arena.

Overall, rents are at an all time low across the board, but don't look for them to stay that way for long. As the economy improves, rents and property values will rise as the economy gets settled on solid ground. Look for most improvement coming after the National election. If you are looking for a new location, now is the time. It won't get any cheaper and interest rates won't get any lower than they are today.