Why Indianapolis Craves More Infill Mixed-Use Development (And Why It's Going To Be Hard To Satisfy The Craving)
Like in a lot of cities, demand is high for a mix of residential and retail in Indianapolis' urban core. But getting projects like that out of the ground can be tough, according to an expert developer who has done it.
Flaherty & Collins Properties CEO David Flaherty said he believes there are still opportunities for mixed-use infill development in Indianapolis, as well as other cities throughout the state.
"These kind of developments take a public participation component to make them work, a true public-private partnership. Without such a partnership, many projects just aren't economically feasible."
As construction costs are increasing faster than rent growth, and with construction lenders using more restrictive lending requirements, these developments can be quite challenging to make feasible, Flaherty said.
Still, demand will support mixed-use, especially in the urban core, he said.
"We still see a strong demand to live Downtown in these infill locations, and I don't see this demand changing," Flaherty said. "People want to have the connected living experience, where they can walk right out of their residence or building and be close to dining, shopping and entertainment, and in some cases, work."
Retailers want to be in on the urban-core action as well. Recently, Starbucks agreed to take the remaining 2K SF on the ground level of 360 Market Square, Flaherty & Collins' 27-story mixed-use apartment tower in Downtown Indianapolis.
Find out more about the future of Indianapolis real estate at Bisnow's first-ever Indianapolis State of the Market event Oct. 31 at the Indianapolis Marriott Downtown. Flaherty will be a speaker.