Marcus & Millichap is pleased to present the opportunity to acquire the property located at 570 Progress Avenue in Munster, Indiana. The subject property consists of approximately 16,000 square feet of warehouse space and is situated on 1.03 acres of land. Delivered in 2014, the vacant single-tenant asset features two five-ton cranes, a clear height of 24’ (14’ under hook), one dock-high door, three grade-level doors, and three-phase heavy power with 800 amps and 270 to 480 volts. Interstate 94 is located only three miles from the property via Calumet Avenue. Previously occupied by the former owner-user of American Machine Works, Inc., buyers have the opportunity to acquire a machine shop business in addition to the real estate.
The subject property is well positioned within the large Indiana submarket, containing 49.6 million square feet of industrial space. Manufacturers occupy almost 50 percent of the submarket, followed by logistics firms who own or lease nearly 30 percent of all warehouses and distribution centers. With over 6,000 employees in East Chicago and Gary, U.S. Steel company is the anchor of the Indiana submarket, along with utility provider NiSource, which employs just under 6,000 workers in Merrillville. Thanks to easy access to steel supply, seven railroad companies have outposts and manufacturing facilities in the region. Landlords and tenants in Indiana benefit from noticeably lower property and sales taxes, while enjoying close proximity to the nation’s third-largest metro.
During Q2 2024, the vacancy rate in the Indiana submarket dropped 170 basis points from a 10-year high to 8.3 percent due to the largest increase in net absorption since Q1 2008. Among comparable properties under 50,000 square feet, vacancies trended along historically low levels of 2.9 percent. At 4.7 percent, annual rent growth across the Indiana submarket slowed to pre-pandemic levels and is projected to slip to the smallest increase in a decade by the end of the year. With only 426,000 square feet of industrial space under construction – representing less than 1 percent of 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. © 2023 Marcus & Millichap. All rights reserved. (Activity ID: ZAF0370190)
