Marcus & Millichap is pleased to present the opportunity to acquire the property located at 7105 Kennedy Avenue in Hammond, Indiana. The subject property consists of approximately 24,340 square feet of flex space and is situated on 1.34 acres of land. The multi-tenant asset features brick construction, five suites, three drive-in doors, a clear height between 12’ and 14’, and a fully fenced-in lot measuring about 0.7 acres. Located just a half mile north of the Kennedy Avenue exit on Interstate 94, the property is zoned C4 for general commercial district that allows uses for restaurants, contractors, and automobile sales and service. Fully occupied by tenants on month-to-month leases, this sale offers an owner-user, value-add, or redevelopment opportunity.
The subject property is positioned within the large Indiana submarket, containing 47.8 million square feet of industrial space. Unlike the national norm, half of the submarket consists of manufacturing facilities, followed by logistics and flex space. Over the last year, the Indiana submarket has experienced significant changes to its inventory. In the last quarter of 2023, the speculative 1 million-square-foot Crown Point warehouse was delivered. The largest delivery to the Indiana submarket in over 70 years helped push vacancy rates up over 200 basis points to nearly 10.0 percent. Two quarters later, the Crown Point warehouse was leased by Amazon. At the same time, the demolition of the 2 million-square-foot shuttered Cleveland-Cliffs steel mill in East Chicago was completed. The combination of historic absorption and demolition sent the vacancy rate plummeting 540 basis points to 4.6 percent in Q2. During the third quarter, vacancies drifted lower to 3.8 percent, setting the lowest level since the turn of the century. Vacancies were even tighter among comparable properties up to 50,000 square feet, sitting at just 2.6 percent. Despite tight availability, annual rent growth for comparables slowed to pre-pandemic levels at 4.5 percent but remained ahead of the Consumer Price Index. Only a 425,520-square-foot warehouse was under construction in the Indiana submarket in Q3. Given that the pipeline represents less than 1.0 percent of total inventory, vacancies and rents will largely be unaffected by new supply for the foreseeable future (CoStar).
Known as the Greater Chicagoland area, Chicago-Naperville-Elgin is the third largest metro in the nation. The metro houses 9.5 million people, including 2.7 million residents within the city of Chicago. The number of corporate headquarters in Chicago is second only to New York City and is home to 33 Fortune 500 companies. Thanks to eight commercial and passenger rail lines, the Port of Chicago, three international airports, and a vast network of freeways, Chicago is a major distribution and logistics hub. The local economy and workforce are highly diverse, supported largely by distribution, finance, manufacturing, and high-tech industries. As a multicultural city that thrives on the harmony and diversity of its neighborhoods, Chicago boasts 100 neighborhoods, 77 community areas, 50 wards, and eight major league sports teams, including two MLB teams. Chicago is a leader in reforming public schools, enhancing public safety and security initiatives, providing affordable housing in attractive and economically sound communities, ensuring accessibility for all, and fostering, social, economic, and environmental sustainability (Chicago.gov).
BROKER OF RECORD
JOSH CARUANA
Indiana Broker of Record
600 East 96th Street, Suite. 500
Indianapolis, IN 46240
Tel: (317) 218-5300
License #: RB14034355
Josh.Caruana@MarcusMillichap.com
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. © 2024 Marcus & Millichap. All rights reserved. (Activity ID: ZAF0370262)
