Marcus & Millichap is pleased to present the opportunity to acquire the property located at 20950 Ireland Road in South Bend, Indiana. The subject property consists of approximately 44,100 square feet of warehouse space and is situated on 5.5 acres of land. The multi-tenant asset features a clear height between 16’ and 18’, four dock-high doors, and one drive-in door. Recent capital improvements include the installation of a new $65,000 HVAC system and a $137,000 replacement of approximately 10,000 square feet of roofing. The fully leased asset is underpinned by rents 33 percent below market rate, with a weighted average lease term (WALT) of 3.25 years, offering investors a significant value-add opportunity. The property is primely located in the Greater South Bend submarket, only 1.5 miles away from the interchange between U.S. Route 31 and U.S. Route 20. This location allows excellent accessibility to Amazon Web Services’ (AWS) $11 billion, 600-acre data center campus in neighboring New Carlisle, Indiana, further boasting leasing demand in the coming years.
Greater South Bend is a tough barrier-to-entry submarket containing 22.4 million square feet of industrial space. Unlike the overall market, warehouse and distribution centers dominate the Greater South Bend submarket, making up 54 percent of the inventory. Specialized space, mostly manufacturing facilities, and flex properties account for 41 percent and 5 percent, respectively. Despite a contraction in demand in Q2, 12-month net absorption was comfortably in positive territory at about 325,000 square feet. With no supply delivered in Greater South Bend during that time, the vacancy rate dropped from 6.2 percent to 4.8 percent in Q2 year-over-year. This compares to the 7.5 percent vacancy rate nationwide. While availability remains tight, rent growth has decelerated to a 10-year low of 1.8 percent. With no properties under construction, there will be no supply-side pressures on vacancies or rents in Greater South Bend for the foreseeable future (CoStar).
Located along the southernmost bend of the St. Joseph River, hence the name, South Bend is the fourth largest city in Indiana with a population of 103,453 residents. Established as a fur trading post, South Bend grew quickly with the rise of the now defunct automobile maker, Studebaker Corporation. Today, South Bend’s economy is anchored by the famed University of Notre Dame. With nearly 6,000 workers, Notre Dame is the single largest employer in South Bend. Both residents and businesses benefit from a low cost of living and business-friendly environment, which has spawned growth in the logistics and high-tech manufacturing industries (Marcus & Millichap).
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2025 Marcus & Millichap. All rights reserved. (Activity ID: ZAG0370302)
