Logistics Park Filling Need for Industrial Space
The 827
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowThe chief development officer of Dallas-based Mohr Capital says while the industrial market was growing rapidly before the pandemic, demand for more industrial space is surging even further because of a pandemic-induced increase in e-commerce. The real estate investment firm has broken ground on a nearly 830,000-square-foot speculative building in the Mohr Logistics Park in Whiteland, with construction on a more than 1 million-square-foot spec building set to begin within the next two months. Gary Horn says the park will ultimately encompass about 475 acres in the Johnson County town.
In an interview with Inside INdiana Business, Horn said it became evident early in the pandemic that the surge in demand for products was not going to be temporary.
“As we grew through the pandemic, what we found out is that that spike in demand was more than just a spike; it was prolonged, which had really disrupted the supply chains for a lot of companies,” said Horn. “As the pandemic evolved, the prognosticators were saying that companies were going to hold back more safety stock. They were going to have larger inventories and go away from lean inventories. They were going to basically take down more space and we’ve seen that come about.”
The idea for the Mohr Logistics Park began when Ohio-based Cooper Tire & Rubber Co. (NYSE: CTB), a client of Mohr Capital, was looking for a larger space to house its warehouse and distribution operations. Horn said the company, which had previously been located in Franklin, wanted to stay in Johnson County and retain its workforce.
Ground was broken last August on the 1 million-square-foot building for Cooper Tire, which would become the first building of the Mohr Logistics Park. The facility was completed earlier this year.
Horn says the growth of industrial space, as well as the decision to build the logistics park in central Indiana, is the result of more than just demand.
“Indianapolis a great hub that services the Midwest, East and Southeast. So, logistically speaking, Indianapolis makes a lot of sense,” said Horn. “Really, Indianapolis is a huge driver. It’s business friendly. It’s got good labor. It’s got reasonable land cost (and) it’s logistically situated to where it can service all those markets.”
Work on the 827,000-square-foot building is expected to be complete in October, with the 1 million-square-foot building set for completion in January. Horn says the firm is in discussions with potential tenants for both buildings, as well as another site on the property that is being eyed for development.
Mohr Capital says in the end, the Mohr Logistics Park will include more than 7 million square feet of Class A bulk industrial space.
Horn says it became evident early in the pandemic that the surge in demand for products was not going to be temporary.