Deal with leading workplace food and beverage provider demonstrates demand for Class A warehouse space near Indianapolis International Airport
Chicago-based HSA Commercial Real Estate today announced the execution of a new 49,977-square-foot industrial lease with Continental, one of the country’s top contract dining and refreshment providers, at Gateway Industrial II, within HSA Commercial’s Gateway Business Park near Indianapolis International Airport. The deal returns Gateway Industrial II to full occupancy after its previous tenant expanded elsewhere within the business park.
In recent years, a record level of speculative industrial deliveries has put downward pressure on occupancy across the Indianapolis market, with net absorption remaining flat to close out 2023, according to CBRE research. Still, absorption totaled 10.5 million square feet last year, the third-highest annual figure on record.
“While leasing activity for large spaces over 400,000 square feet has considerably slowed, the demand for smaller footprints under 100,000 square feet remains very strong,” said Robert Smietana, CEO and president of HSA Commercial Real Estate. “This is especially true for modern facilities that offer immediate access to the region’s robust transit infrastructure, which puts more than half of the country’s population within a day’s drive.”
The lease with Continental underscores HSA Commercial’s ability to accommodate tenants as they grow, according to Smietana. The space’s previous tenant, Peli BioThermal, relocated from 50,000 square feet in Gateway Industrial II last year to 138,328 square feet in a newly constructed building in the park, Gateway Industrial VI. This allowed Peli BioThermal to more than double its space without disruption to its operations.
Based in Troy, Mich., Continental specializes in workplace food and beverage programs, offering services ranging from 24/7 “micro-markets” to full-service cafes. The company, known for its best-in-class logistics and infrastructure, plans to establish a distribution center and office space at Gateway Industrial II, located at 851 Columbia Road in Plainfield, Ind. HSA will oversee the build-out of the office portion while Continental will retrofit the warehouse space, with occupancy slated for June 1.
“As the area’s leader in foodservice and refreshments, Continental Canteen sought an additional, centrally located and state-of-the-art distribution center to support growing demand and assist in providing our clients with the personal service they know and love throughout Indiana, especially within the greater Indianapolis metro area,” said Sean Rosenberg, director of brand marketing for Continental.
Built in 2004, Gateway Industrial II features a 28-foot clear height and 50-by-50-foot column spacing with 60-foot bays. In addition to Continental, the 104,400-square-foot facility is occupied by Sky Zone Trampoline Park, In Touch Pharmaceuticals and CertiFit Auto Body Parts.
To date, HSA Commercial has completed seven buildings totaling approximately 1,178,000 square feet at Gateway Business Park. Situated on 55 acres, the master-planned development is conveniently located 1 mile from Indianapolis International Airport, five minutes from Interstates 70 and 465, and just 10 minutes from downtown Indianapolis.
Tom Ferguson of Indianapolis-based Premier Commercial and John R. Boyd of Southfield, Mich.-based Signature Associates represented Continental in the transaction. Terry Busch and Jared Scaringe of CBRE represented ownership.
About HSA Commercial Real Estate:
Founded in 1981, Chicago-based HSA Commercial Real Estate is a diversified, full-service real estate firm specializing in office, industrial, and healthcare real estate leasing, management, marketing, development and financing on a national basis. Along with developing and acquiring more than 100 million square feet of commercial real estate across the United States, with a total consideration in excess of $6 billion, HSA Commercial Real Estate has represented owners and tenants in more than 10,000 transactions in 43 states; manages a property portfolio, including retail, in excess of 14 million square feet in locations across the nation; and owns more than 13 million square feet of commercial property throughout the country.
Gateway Industrial II: Chicago-based HSA Commercial Real Estate has completed an industrial lease totaling 49,977 square feet with Continental at Gateway Business Park near the Indianapolis International Airport.