Expanding businesses, brave entrepreneurs and a thriving economy are driving the demand for office space and resulting in a tightening office market in Fort Wayne.
The Electric Works redevelopment has sparked a significant amount of growth as its role has made incubator space accessible to innovators who are successfully driving the market. In fact, the market is experiencing the highest demand it has seen in years. The premiums these owners are seeing is because of the desire for mixed-use space from people of all walks of life. Additionally, this strong pace of the demand is being driven by residents of all ages desiring to have a lifestyle that is accessible and includes entertainment, work and life services.
Investor demand is creating high water mark pricing for sellers, parking lot owners and developers. Nationally, investors are chasing yield which bodes well for secondary and tertiary markets found in northeast Indiana. In the search for solid fundamentals, private investors, nationally known real estate investment trusts and other public entities are realizing the value in markets such as Fort Wayne.
Suburban owners of office buildings are exploring revitalization of older spaces and adding the amenities needed to attract tenants. The lower rents that these owners can offer will create a competitive edge to the lure of downtown. New construction is forecast to increase late in 2019, which will level the demand and allow rents and vacancies to remain steady for the next several quarters.
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